White Paper: Creating Competitive Advantage Through Integrated PLM And Sourcing Systems

In a recent study of 101 leading retailers, Kurt Salmon Associates identified a select group of companies that consistently has outperformed the industry—even in today's difficult economy. We call these industry leaders Act Vertical retailers, and they all have two attributes in common: 1) They all have a brand strategy that differentiates, at least in part, a unique offering and engaging customer experience, and 2) They all have an execution plan for an end-to-end integration of the value chain through cross-functional means that are grounded in collaboration, not ownership.

Further, we identified seven core Act Vertical capabilities critical to ongoing success, one of which is the integration of product development and sourcing functions to bring the right products to consumers more efficiently. Although current systems do not yet meet all of the requirements for an integrated product development and sourcing tool, retailers can employ a variety of tactics to leverage the benefits of collaboration and integration today.

Traditionally, product development and sourcing interactions are limited to sequential information handoffs, and separate IT systems are used to support the needs of each organization. Companies typically use product lifecycle management (PLM) systems to manage the product development process from creative design to order placement, and they often use sourcing systems to manage the process from order placement to delivery.