Compare Manufacturing Software PLM versus ERP and PLM versus MES
                     Compare Manufacturing Softw
are:
PLM versus ERP and PLM versu
s MES
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Understanding software can be 
intricate, with several enterprise 
applications sharing similar 
functionalities, intensifying the 
complexity of comparing 
manufacturing software. When 
deciding between investing your 
limited IT budget in 
PLM versus ERP or PLM versus MES, 
determining the right choice can be 
challenging. The solution might hold 
unexpected revelations.
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What Do They Do, Anyway?
• Enterprise Resource Planning (ERP)
ERP, a veteran in the realm of enterprise applications, has a history dating back 
to the 1960s. It encompasses a broad array of accounting functions, such as 
the general ledger, inventory management, and resource and inventory 
planning. In cases where it caters to the manufacturing sector, it might include 
certain shop floor control functions. Within its scope, Bills of Materials are 
utilized for both planning and dispensing materials on the shop floor, in tandem 
with some related shop orders. Industries dealing with lengthy lead time items 
or intricate bills of materials might find an ERP system indispensable for long-
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• Manufacturing Execution Systems 
ME(MS sEySs)tems typically introduce greater intricacy to the shop floor compared to 
what ERP systems commonly provide. They enable more detailed scheduling 
options than ERP solutions, which are usually confined to scheduling by day or 
shift. MES systems can schedule with precision down to the minute and provide 
swift finite scheduling capabilities. While they may encompass certain long-
term planning features, they are generally not as elaborate as those offered by 
ERP systems. An MES system might be crucial for operations involving complex 
production processes with frequent bottlenecks, limited capacity, or instances 
where alternative routings are frequently used in production.
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• Product Lifecycle Management (PLM)
PLM systems manage product strategy from the initial idea through 
prototyping, product launch, and retirement. They excel at managing phase-in 
or phase-out of products or component changes. They help ensure that the 
company introduces new products on time and on budget with project 
management capabilities that are well-tuned for product design processes. 
They include engineering Bills of Materials (BoM) that allow for design and 
maintenance without affecting manufacturing processes before product 
release.
PLM solutions manage products throughout their entire lifecycle – from initial 
idea conception all the way through disposal.
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Companies usually use them in conjunction with 
CAD systems, and modern PLM systems include 
the ability to do 3D modeling and connect to 
IoT networks to allow for rapid prototyping of 
products and optimized processes. They are 
essential in any industry that must offer 
continuous product innovation to retain market 
share. The best PLM systems include built-in 
integration capabilities to a wide variety of ERP 
and MES systems. PLM maximizes revenue and 
margin by product, which is an essential goal for 
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Compare Manufacturing Software
• PLM vs ERP
Given that both products involve Bill of Material and routing management, can 
a company operate solely with ERP? It's possible, but it could mean the 
disparity between mere survival and flourishing.
Consider using ERP, for instance, to determine the optimal timing for 
implementing an engineering change or launching a new model without 
impacting inventory. When relying on ERP, this involves a complex offline 
manual process that, at most, provides a rough estimate—often requiring 
significant effort. On the contrary, PLM assists specifically with such challenges.
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And if time to market is essential, you need PLM for its rapid prototyping 
tools and ability to plan processes with digital twin, IoT, 3D printing, and 
many other advanced technologies.
• PLM vs MES
Both products include ECN, BoM 
management, and IoT integration, so can 
you survive with just MES? Probably not. 
MES excels at shop floor management, but 
it doesn’t usually handle product design 
and new product introductions.
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Align Your Manufacturing Software Selection with 
Your Company Strategy
When comparing PLM versus ERP or PLM versus MES, each company will have 
its distinct priorities, strategies, and available resources. Thus, every company 
needs to make the decision by evaluating its individual position.
Ultimately, you should select the solution that best aligns with your overarching 
business goals.
But every company today faces increased competition that requires constant 
product innovation. It’s also important to wring every bit of profitability out of 
existing products, and to introduce new products in a way that ensures they 
don’t leave the company with a pile of obsolete inventory.
Of course, in an ideal world companies 
would have the budget and resources 
to have all three solutions, fully 
integrated and sharing data. If that’s 
not possible, look at the areas of 
biggest impact on your company’s 
profitability, and you will find that PLM 
iAst  a3nH eTsi sween thiaalv sey lsottesm o.f experience understanding manufacturing organizations 
and all the supporting software. If you need some more help figuring out what 
is the right fit for your organization, feel free to contact us and we would be 
happy to help!
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