When embarking on a Product Lifecycle Management (PLM) project, selecting the right vendor is critical. To ensure your PLM system meets your organization’s needs, it’s essential to ask the right questions. One size doesn’t fit all and the questioners for selecting PLM software can be quite different. I’ve been getting questions from my readers about what is the right approach to take when selecting PLM software, what questions to ask. While it might sound like a good idea to development a huge couple of hundred questions RFI, it might be not the best way to do.
From my experience, the biggest challenge is that you might not knowing all questions upfront. The reason for that is related to development of business processes in an organization. Very often, PLM software selection is considered as a ‘strategic project’ and companies attempt to develop questioner that includes everything to find the right software that will serve their business for ages to come. Modern approach to PLM software and implementation strategies suggest a more agile and phased approach. It combines PLM strategy (business and processes) with PLM software (services that can used to implemented). While you need to have solid strategy, the software can reflect a specific stage of your PLM strategy development.
In my article today, I want to give you six groups of questions about PLM software that can help you at any stage of PLM software development project.
1- Functional
Start by exploring the functional requirements. Ask your vendor about core 3 functional groups: PDM, Item/BOM management, and change management. Also, ask how the system is capable to manage manufacturing BOM while the ERP retains control for order management and MRP. It’s crucial to understand their approach to change and version control—specifically, how the system handles revisions of existing parts and what workflows support this process. Multi-language support is another key aspect; find out if the solution supports languages.
In terms of BOM management, ask how the system maintains a BOM in PDM without user interaction in the ERP. Check if the solution integrates seamlessly with CAD tools and if it allows minimal interaction between CAD/BOM and ERP systems to create and maintain BOM data. Costing calculations are vital too; ensure the solution provides both pre-release and post-release cost calculations.
2- Usability
Usability is paramount for user adoption, so ask for a demo to see how user-friendly and intuitive the interface is. There are many ways to make user experience assessment, but the best one is to make a test. In the world of SaaS and cloud PLM, ask to have a trial of the system and check the impression. While pictures can be helpful, I’d recommend to run the test by yourself and the team .Pay attention to the number of clicks and simplicity.
3- Technical
Next, dig into the technical requirements. Ensure the system integrates with existing applications, data sources, and technologies you use. Security is a major concern; ask about configurable controls for data and transaction security and request compliance documentation. Investigate the system’s capabilities for user authentication, password management, two-factor authorization, single sign-on, and role-based access.
The key element of technical requirements is flexible data management. Nothing will help you after you will learn that data cannot be extended or to add an additional BOM type or property you need to contact a development team.
Data storage needs should be clarified, including storage capacities, disaster recovery, and rollback processes. If your operations span multiple geographies, ask if the system supports localization for insights, language, and currency. Performance management is another area to explore—ask how the solution provides proactive alerts and issue resolution reporting.
Data management capabilities are crucial; inquire about data sharing monitoring, reporting, and security features. Similarly, disaster recovery and backup processes should be robust, supporting disaster recovery, rollbacks, and version control. Understand the network technologies employed to ensure optimal performance, and ask how the system manages data sharing, including integration with AI engines. Compliance with standards like CCPA, GDPR, SOC 2, ISO 27001, and FedRAMP is essential, so request details on this. Lastly, ask about customization options, including custom interfaces, data tables, processes, and business logic.
4- Support and Services
Support and services are vital for a successful implementation. Clarify the level of customer support provided—24/7, multi-language, and global support are ideal. Inquire about the resources available for setup, testing, and training to meet your go-live date. A clear implementation plan, including onboarding and setup, is essential.
Explore the support formats offered, such as phone, email, chat, and online knowledge base. Check if the vendor provides Quarterly Business Reviews to measure performance, adoption metrics, and uptime. Ask about the deployment model options, including staggered, proof of concepts, or end-to-end enterprise deployments, and whether separate test and production environments are available.
Ensure the vendor meets service level agreements (SLAs) related to system performance, concurrent users, uptime, and issue resolution. Confirm they have the necessary expertise to meet your implementation objectives.
Confirm that training is included in the implementation plan and costs, ensuring your team can effectively use the system. Additionally, inquire if the PDM can generate cutting guides based on BOMs and designs.
5- Vendor’s Health and Finance
Vendor health is another crucial area. Ask about their financial stability and ensure their vision, culture, and team align with your needs. The focus and size of their customer base can indicate their ability to understand your industry. Request references from similar organizations to gauge their reliability. User ratings can provide additional insights, so check their online reviews.
6- Understand the Company Strategy
Understanding the vendor’s product strategy and roadmap is key to ensuring it aligns with your future requirements. Finally, delve into pricing and commercial terms. Clarify the initial contract term, renewal process, and terms. Understand their license pricing units, costs, and forecasted volumes. Ask about implementation costs, training expenses, and key contract terms like price protection, termination clauses, and jurisdiction. Lastly, inquire about fees for ongoing support services and maintenance.
9 Questions for RFI
Here is my simple questioneer to evaluate PLM software:
- Major PDM and PLM functions
- BOM and change management
- Infrastructure and system architecture
- Flexibility of data model
- Technical architecture, data model and customization
- What support level and how support can be provided
- Parts, APIs and customization
- Bank and other questions indicating that vendor is doing well financially
- Dig into the details to understand the company vision and strategy
I hope this questions will help you to form the list.
What is my conclusion?
One size dosn’t fit all when it comes PLM software, product data management, supply chain and PLM solutions, and supply chain. Asking these comprehensive questions, you can ensure that the PLM vendor you choose will meet your organization’s needs and help drive your PLM project to success.
Best, Oleg
Disclaimer: I’m the co-founder and CEO of OpenBOM, a digital-thread platform providing cloud-native PDM, PLM, and ERP capabilities. With extensive experience in federated CAD-PDM and PLM architecture, I’m advocates for agile, open product models and cloud technologies in manufacturing. My opinion can be unintentionally biased.
