Business owners utilize sourcing management tools like product life-cycle management (PLM) to make sure they release relevant goods, maintain the brand presence and revenues, and even learn from falloffs. Here are its definition, elements, and stages.
PLM refers to the process of overseeing all data related to manufactured goods as they go through the stages of introduction, growth, maturity, and decline. It also includes marketing strategies to promote merchandise. The key elements are:
- Access control
- Content identification
- Product optimization
- Task delegation
- Waste reduction
- Workflow and process approval
- Quality regulation
In every stage, managers take on different roles. Listed below are the phases and their tasks in each:
It’s the starting phase where managers look into the initial developments, including the conceptualization and design of the items. Then, they ensure the supplies are adequate, and the specifications are met. They also conduct market research to identify how much people are willing to pay. Once the goods have been manufactured, they launch them and employ various strategies to entice the target audience.
Supervisors check key performance indicators (KPIs) to assess which marketing tactics are working. They also identify the factors that facilitate better brand retention and develop them further.
This is the stage where the sales increase. To maintain this, managers check the quality of the goods. They can suggest support services and additional features as needed. Plus, they monitor the marketplace to make sure they’re up-to-date with the prices of similar items and can adjust accordingly. Since the products are already patronized by the target audience in this phase, they think of and implement promotion strategies for others.
It occurs when the sales have reached their peak, but managers need to defend the brand against competitors. They offer features and solutions better than those of similar goods. Unlike in the growth stage, their main task is to differentiate the products rather than focusing on customer retention. They also determine problematic indicators and formulate tactics to keep their consumers loyal.
This is where sales significantly decrease, and the goods might be discontinued if they’re no longerrelevant. But, managers should first try to optimize revenues by offering discounts and targeting new markets. Their goal is to lengthen the period before the phaseout.
When the company stops selling the products, supervisors evaluate the good and bad strategies they utilized throughout the entire cycle. Then, they apply their learning to new merchandise.
Supervising and controlling the product life-cycle is an essential process to ensure the company gets maximum revenues and minimum losses. People who need technological aid in this task can utilize PLM sourcing management software to consolidate all data.