In fashion, every design represents a potential product, but understanding how to transform those ideas into desirable items while keeping up with ever-evolving trends without getting outpaced by competitors relies on a business strategy called product lifecycle management (PLM).
To understand how product lifecycle management is relevant in the fashion industry — particularly with regard to fast fashion, digital transformation, and the need for efficiency and sustainability — this blog will explore fashion PLM, how it benefits industry players, and how retail businesses can implement PLM in their businesses to effectively manage their fashion strategy, stay ahead of the trends, and maximize profitability.
What Is Product Lifecycle Management (PLM)?
Product lifecycle management refers to a systematic approach that leverages strategies, tools, and business solutions to manage and optimize the entire lifecycle of a product, from its initial conceptualization to its disposal and discontinuation. PLM is like an operating framework for a business, but one that focuses solely on managing the product lifecycle.
So, what is PLM in fashion? PLM aims to help fashion companies bring products to market successfully while streamlining every step of the product’s journey.
Key Stages of the Fashion Product Lifecycle
A product goes through multiple stages in the context of PLM. Understanding these can help fashion brands home in on the individual stages to focus on goals, potential risks, and effective strategies for managing each.
Ideation and Trend Forecasting
The first stage of the fashion product’s lifecycle is the process of using trend analysis, forecasting, and market research to develop the initial product concept.
Product Design and Development
Next, designers refine the concept and the design by selecting materials and creating and comparing prototypes.
Material Sourcing and Supplier Collaboration
After developing and refining the design, a fashion business works to identify and select suppliers and design a supply chain before negotiating prices, collaborating, and overseeing the manufacturing process.
Sampling and Prototyping
The fashion business then collaborates with suppliers to ensure the manufactured product meets design expectations. This involves a process of using three-dimensional (3D) digital models before creating physical samples of garments or accessories.
Production Planning and Manufacturing
Once a sample meets the expected standards, the next stage in the product lifecycle is planning for and managing the mass production of the item.
Distribution and Retail
While a product is being manufactured, the business will focus on taking it to market by selling to retailers and/or directly to the consumer. This stage requires sound inventory tracking, marketing, and sales management. After sales, a fashion business might also need to manage post-sale concerns like returns and repairs.
End-of-Life and Sustainability Considerations
Especially in fast fashion, seasons and trends shift quickly, and the end of a product’s lifecycle can approach rapidly. Fashion businesses need a strategy for retiring a product as it becomes obsolete. Ensuring prudent strategies in the earlier stages of a product’s lifecycle can help prevent and reduce waste, leading to more efficient resource management.
Benefits of PLM in Fashion
Traditionally, large fashion companies and luxury brands have used PLM software, but most fashion companies have used some form of PLM — often implemented through an Excel spreadsheet or other non-specific software.
In today’s more complex industry, however, fashion companies of all sizes can benefit from dedicated PLM software tools; more options at a variety of price points are available, and when properly implemented, they support the generation of a substantial ROI.
In all kinds of fashion companies, PLM software helps support product development while maximizing profits through the following benefits.
Enhanced Collaboration Across Teams
A PLM system is a type of operating framework and actual software. Modern, cloud-based systems provide a centralized platform for communication, delegation and task management — allowing teams to work together across departments. As remote teams have become increasingly common, operating through and accessing information from a central platform has become increasingly vital to fashion business operations.
Faster Time to Market
The streamlined research, product development, and collaboration processes facilitated by strong PLM result in a considerably shorter time to market with faster internal processes and third-party interactions.
Cost Reduction and Efficiency
With clear communication and efficient collaboration, PLM streamlines processes, minimizes waste, and facilitates the optimal utilization of resources that results in all-around lower costs.
Improved Product Quality
PLM software supports increased agility, enabling businesses to respond quickly to new trends, seasonal changes, and the potential volatility of working with worldwide suppliers. Keeping up with the fast pace of the industry supports the delivery of better products. Additionally, PLM can elevate product quality by supporting better control over design standards, material selection, supply chain management, and manufacturing processes.
Sustainability and Compliance
Comprehensive product lifecycle management incorporates a focus on sustainability and compliance, too. This helps reduce costs and combat the negative environmental effects of fast fashion while also maintaining compliance through organization-wide regulatory oversight.
Steps to Successfully Implement a Fashion PLM System
Designing, implementing, using, and refining a PLM system in the fashion industry will completely overhaul a business’s key operations and workflows. Therefore, the process is complicated, and official guidelines for PLM system implementation in the fashion industry are scarce.
However, research indicates that following a well-designed implementation plan may help fashion businesses optimize the process and product lifestyle while avoiding pitfalls and maximizing positive results.,This particular study from the International Journal of Advanced Manufacturing Technology has provided a basic, step-by-step PLM implementation outline that takes on the following structure.
Assess Business Needs
The study suggests fashion businesses begin the process by evaluating their current product lifecycle stages to specifically identify the problems a PLM system should solve. Consider what’s working and what isn’t, and identify specific goals for your PLM system.
During this initial step, one might ask questions like:
- How can we minimize errors?
- What can be done to reduce manufacturing costs?
- How can we cut time-to-market?
- How can we increase data visibility?
- What are the weak points in our supply chain?
- How can we facilitate remote collaboration?
Get Executive and Cross-Department Buy-In
Since a PLM system impacts almost every department in a fashion business, the study also emphasizes the need to gain buy-in from the executive team and leadership across the company, along with employees at all levels. Plus, business leaders will work to ensure that third-party vendors and suppliers are willing and able to work within the new PLM system.
Business leaders can help gain buy-in by interviewing employees, vendors, suppliers, and other stakeholders to gain perspective and input regarding their own workflows and insights. Additionally, take time to demonstrate how a PLM system will simplify tasks, streamline workflows, save money, and maximize profits.
Choose the Right PLM Vendor
Part of this detailed implementation process includes selecting the right company from which to purchase PLM software as a key consideration. Practice due diligence during this step to ensure the software is within budget but also has the features, capabilities, and scalability for your business needs. Also, check that the vendor offers adequate support.
Plan the Implementation Roadmap
The study emphasizes the importance of using a cross-departmental team for implementation. The team may include representatives from each relevant department (e.g., production, research, design, IT, management, sales, project management, etc.). Team members should work together to craft an actionable plan for implementing the system, and gather all of the necessary data and information to outline each step in the business’s product lifecycle. This plan might begin with a small-scale test to gather feedback and adjust processes before going forward with a business-wide rollout.
Migrate and Cleanse Data
After performing initial testing, collecting user feedback, and fine-tuning processes, the study suggests performing final testing and preparing for the PLM system rollout. Begin by moving data from analog or existing systems into the PLM system. Then, cleanse the data to eliminate errors and ensure accuracy in your new processes.
Train Teams Thoroughly
After a final successful test, complete data migration and cleansing, and full integration with existing systems, the final step suggested by the resrarch is training. Ample training ensures the relevant members of each department have a solid grasp of the new workflow, tools, systems, and responsibilities.
Monitor, Optimize, and Scale
Once you go live and complete the implementation of a business-wide PLM system, the study recommends maintaining thorough data records to facilitate ongoing performance monitoring. As business analysts identify trends in the data, leaders can adjust the system to optimize performance and keep up with the business’s evolving, scaling needs.
How to Choose the Right PLM Software for Fashion Businesses
Selecting PLM software is a pivotal decision in the PLM process. To decide which software and packages are ideal for your fashion business, consider its specific needs, budget, and growth goals.
Industry-Specific Features
PLM software works best when it isn’t one-size-fits-all. Look for features that are specific to the fashion industry, such as fashion tech packs with measurements, materials, construction details, and other specifications in addition to three-dimensional visualization capabilities and built-in line sheet management.
User-Friendly Interface
Leaders in the fashion industry are usually experts in fashion design, not software design. So, look for a user-friendly solution with an intuitive interface and customizable features built into the PLM platform.
Integration Capabilities
Ideally, all of your business’s systems are optimized for streamlined, seamless integration that enables you to, for example, track your PLM data in your accounting software or pull reports from a larger enterprise resource management tool.
Cloud vs. On-Premises Deployment
Some PLM systems are cloud-based, while others are desktop systems. Considering your office design (in-office, remote workers, or hybrid), a cloud-based system that allows remote access might be better than a system that is anchored to a physical hard drive.
Scalability and Customization
Consider your business’s unique needs and goals. You’ll want to opt for a system that offers flexibility and customizations that meet your company’s requirements — while also having the agility to scale as your company grows.
Vendor Support and Community
Look for a PLM software vendor that offers quality customer support for troubleshooting technical issues. Additionally, choosing a vendor with a strong community of software users can also be helpful, as users commonly talk on forums to collaborate, solve problems, and inspire one another with creative new ways to use the provided tools.
How PLM Supports Digital Transformation in Fashion
Digital technologies have revolutionized the fashion industry’s operations and processes, from design and production to marketing strategies and sales plans. As the digital transformation continues, advanced technologies like cloud systems, 3D design, artificial intelligence (AI) integration, and virtual showrooms are becoming more common in fashion businesses. With fashion business processes increasingly going digital, PLM software helps support and centralize these tools, integrating them into the product lifecycle strategy.
Challenges in PLM Implementation
While PLM systems offer several benefits to fashion businesses, the process of implementation can be challenging. Businesses often experience the following obstacles:
- Resistance to change
- Budgeting for initial costs
- Determining how to customize software for the business’s needs
- Issues with the complexities of migrating data from existing systems
- Integrating PLM software with other business systems (e.g., customer response management, computer-aided design, accounting software, or enterprise resource management software)
- Insufficient user training
- Choosing the wrong PLM vendor
Designing a thorough PLM implementation plan can help to mitigate these issues — ensuring sound decision-making, clear goals, and a smooth rollout. Despite the challenges, PLM systems can help facilitate overall smarter, more efficient and effective, and profitable processes in the fashion industry.
Real-World Examples of PLM in Fashion
The following apparel companies successfully leverage fashion PLM to cut costs as well as boost efficiency and performance:
- H&M – Fashion retailer H&M has boosted its PLM system into the future by powering it with artificial intelligence. Paired with AI-powered data collection and analysis, H&M’s data scientists analyze thousands of consumer patterns and behavior data points to predict trends and improve product planning and design strategies. Plus, the trends can be considered globally or pinpointed to specific retail locations around the world.
- Levi Strauss & Co. – Another fashion giant incorporating AI into its PLM system, Levi Strauss & Co. has created a unique Business Optimization of Shipping and Transport (BOOST) engine that uses AI-powered data collection, algorithms, machine learning, and analysis to optimize inventory with more accurate sales trends predictions and quick responses to shifting demand. As a result, they better anticipate stock needs to ensure inventory is available where and when their customers want it.
- Patagonia – Facilitating repair, resale, and recycling program initiatives, Patagonia employs PLM software to achieve the company’s sustainability goals by minimizing the environmental impact of its production processes. This is exemplified through its “Worn Wear” initiative.
Final Thoughts: Embracing PLM for the Future of Fashion
A product lifecycle management system is vital to businesses in the fashion industry — making it a valuable concept for current and aspiring professionals to understand. Companies have an incentive to continuously design, refine, produce, sell, and retire new products, and a PLM system optimizes that process for maximum efficiency, improved performance, reduced costs, and optimal workflows.
In the midst of an ever-changing, post-pandemic industry, a sound PLM system can help established and new fashion businesses navigate the changing landscape of technology, retail, and supply chain management. With a comprehensive PLM system, a fashion business can foster innovation, shore up supply chains, accelerate time to market, and facilitate a more sustainable operation to combat the effects of fast fashion.
Blaze Your Career Path by Pairing Your Passion for Fashion With the Business of Retail
Are you passionate about fashion, design, and retail trends? Looking for a practical way to put your creative passion to work? If fashion design and the business strategy of product lifecycle management in fashion interest you, then the Bachelor of Science in Fashion Merchandising and Retailing program at Johnson & Wales University (JWU) Online could help jumpstart your journey in the fashion industry. This degree program introduces students to the global fashion industry, a broad base of business knowledge, and industry-specific resources and competencies that uniquely prepare you to enter the professional world of retail and fashion.
For more information about completing your degree online, complete the Request Info form, call 855-JWU-1881, or email [email protected].
