PLM software delivers ROI

The simple fact is that every time you scrap or revise a project or process, you lose money.

Recreating lost, fragmented or untraceable documents instead of focusing on the development of new products can cost your company thousands of dollars in hard costs – as well as soft costs, like staff time and efficiency.  Continually updating product data across multiple BOM spreadsheets is time-consuming and the information is prone to data entry error.

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The great news is that all of these issues are avoidable. A comprehensive, secure and transparent data management process solution will eliminate inaccuracies and prevent unnecessary confusion, errors and cost.

Food and beverage producers invest in and employ highly specialized and experienced staff; each team member – particularly in research and development – makes independent decisions that impact your long-term costs for recipe creation, production and marketing.

Human error, spontaneous decision making and staff turnover can result in the loss of previously-developed documents – as well as detailed information and historical knowledge regarding when and why changes were made in the project or process.

Efficiency and the elimination of errors in product data management provides essential leverage against competitors – the kind of leverage that determines your net profit.

The deployment of SpecPage process solutions has many advantages, including lower project costs and a rapid return of tangible benefits on your initial investment.

SpecPage delivers innovative, intuitive product lifecycle management solutions that optimize your data and harness the power of digital transformation to increase revenue and ROI for your business.

AnalysisPLM software delivers ROI

This analysis will focus on six challenges that F&B producers face – areas with simple, easily estimated inputs that produce clear outcomes, as an example to illustrate the results of SpecPDM implementation.

Based on a variety of comprehensive, reputable, scientific PLM software studies, we have gathered the most commonly identified benefits that require minimal data input. The improvement percentages used in our PLM software ROI calculations are far more conservative that commonly accepted industry practices.

  1. Employee data search & collaboration productivity

Industry averages indicates: PLM increases staff productivity by up to 25%; for the purpose of our ROI calculation, we will use a 5% increase.

  1. Change Management Efficiency

Industry averages indicate: PLM reduces the manual change process by up to 50%; for the purpose of our ROI calculation, we will use a 5% decrease.

  1. Increased recipe re-use and avoidance of duplicate/equivalent formulations

Industry averages indicate: PLM saves up to 56% of development staff time; for the purpose of our ROI calculation, we will use a 5% savings.

  1. Supplier collaboration for specifications and certificates

Industry studies indicate that when implementing a PLM solution, staff productivity may increase by up to 25%.  For the purpose of our ROI calculation, we used 5%, which resulted in increased productivity for data search and collaboration of $2.2 million per year.    

By developing 4.100 new and 1.000 adapted formulas, including trials and samples, industry studies and experience indicate that an integrated specification and formulation system may reduce the manual change process by up to 50%. For the purpose of our ROI calculation, we used 5%, which resulted in productivity gains for increased formula re-use, near elimination of duplicate and equivalent data – but also fewer lab analysis, less scrap, and far fewer revisions for formulation changes and change management efficiency of $540,000 per year.

Connecting suppliers by automating workflows and processes with an online collaboration platform for specifications, documents and certificates reduces the manual process by up to 80%. For the purpose of our ROI calculation, we used 5% to calculate gains for 500 active suppliers, supplying 2.100 raw materials and 500 packaging components – an annual productivity gains of $400,000 by using the SpecPage Suppliers Guide.

Preventing lost, misplaced or unauthorized documents and product specifications for 5.750 products via automated workflow improvements may save up to 20% of development staff time. For the purpose of our ROI calculation, we used 5%.

The timely, accurate and regulatory compliant product specifications automatically generated by SpecPDM may also save up to 75% of regulatory employee/staff time. For the purpose of our ROI calculation, we used 5%.

The bottom line is that your productivity may increase by $700,000 annually by eliminating errors and developing timely, accurate and compliant specifications.

Implementation of the SpecPDM solution provides rapid results and substantial, tangible, quantifiable benefits:

  • Improve productivity by replacing manual process and reducing errors. In addition, a central database with historical data will allow the users to reuse past experiments and formulations, speed new product development and update Change Requests to existing products in real time
  • Faster, more flexible to market request and regulatory checks
  • Central data and specification management system
  • Real time control of formulation development and product pipeline
  • Comprehensive formula, ingredients lists, raw materials and specifications in a single central database, with the appropriate tools.
  • Supports uniform workflows and business processes continuity
  • Audit and approval functionalities
  • Reduce production costs/optimize supplier’s ingredients portfolio
  • Engage supplier’s collaboration
  • Achieve higher quality data management and product portfolio management
  • Significant tangible benefit from single system database from IT perspective, control access/security, disaster recovery and data backup

No better investment

Food and beverage manufacturers often operate on paper-thin profit margins – SpecPage delivers a distinct competitive advantage by leveraging related data with a centralized product data repository, improving visibility and downstream tracking, eliminating paper and spreadsheet processing while ensuring global regulatory compliance and quality control management.

SpecPage is the only PLM and PDM software provider dedicated to the food and beverage industry with a quick start, out-of-the-box process solution – available on premise or cloud-based. We provide process solutions that are specifically designed for recipe-based food and beverage manufacturers.

2019-09-17T11:47:09+02:00Blog, Data Management, PDM, PLM|
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