What is Configuration Lifecycle Management?

Configuration Lifecycle Management (CLM): During a product’s lifecycle, configuration lifecycle management keeps track of all its configurations across all its business activities. Manufacturers of complex systems and configurable goods need CLM because it helps them connect their business units and outside stakeholders to keep the process running smoothly and share accurate data.

Configuration lifecycle management (CLM) makes it easier for the sales, manufacturing, service, and engineering teams to talk to each other about rules and details about how to configure a product. CLM lets companies that make complex products with many options put all their product configuration data in one place where all their business operations teams can view it.

Other words

• CLM
• product configuration management

The configuration lifecycle has different stages.

Several business steps go into figuring out the variables in product configuration. When a customizable product is set up to be sold, it goes through the following stages of the product configuration process to make sure it can be made precisely the way the customer wants it:

Build up

The product is planned and built during the development part of the product configuration lifecycle. All of the product’s variations and choices are set during this time.

The price

When you buy a configurable product, the price is set based on the available configuration options, the target market, the cost of production, and the profit margin you want to make.

Shop around

During this stage of the configuration process, market needs and local laws affect how the product can be customized and made available.

Sell

The salesperson changes the goods based on what the customer wants, which leads to an order. With the help of a CRM and CPQ system, the salesperson can make a sales quote and get the customer to sign off on the order before it is sent to be filled.

Where to Find It

Sources of supplies to make the items are found.

The product is built based on the design chosen in the earlier stages. So, it’s essential to eliminate setup mistakes before getting to this step.

Service, maintain, and run.

Any updates or aftermarket parts are added in a way that works with the original configuration during this step of CLM.

Take away

Depending on the materials used to make the product, there may be rules or requirements about how to get rid of it when it’s done. Since the product’s composition is recorded during production, complete configuration lifecycle information makes it possible to meet disposal standards.

The pros of CLM

Assembles all configuration data into a single source of truth. Keeps track of complex product configuration rule data. Leads users, sales, and service teams through the product configuration process.

It is essential to ensure that the product configurations are always correct and up-to-date during the product lifecycle, from creation to use. This is called product configuration lifecycle management. By handling configurations well, businesses can avoid mistakes that cost a lot of money, work more efficiently, and meet customer needs better.

Problems to solve: Configuration lifecycle management takes care of this.

CLM breaks down the separate methods that are common in manufacturing companies. A product lifecycle management system is often used to define goods, and a CRM or CPQ system is often used to sell them. Then, an ERP system is used to make them. These systems can use a CLM system to keep accurate product description logic and configuration records. This makes sure that they all work with the same information.

Additionally, CLM helps producers deal with the following issues:

Making products more complicated

Configuration management needs to get better as products get more complicated. Configuration lifecycle management helps ensure that the right things are designed and built into goods and that changes are made safely and controlled. Configuration lifecycle management can also help lower the chance of mistakes and boost the quality of the product. Companies can more likely bring successful goods to market if they keep track of the configuration of their products throughout their entire lifecycle.

Markets and channels of distribution around the world

Businesses worldwide must consider local laws, customer tastes, and how geography affects product design when setting up their products. CLM ensures that salespeople have the right product and price information to give accurate price quotes.

The customer relationship grows. After the Sale

Companies that want to stay competitive know that the first sale is only the beginning and focus on increasing their revenue. As a result, keeping in touch with customers after the first sale is very important. For instance, many goods today have software or sensors built in that might need to be updated after the sale. CLM ensures that the seller can keep track of the original product setup and any changes made afterward. This lets them make the most money possible from upselling, cross-selling, and offering extra services.

Changing to digital

Configuration Lifecycle Management (CLM)  helps manufacturers align their ERP, marketing, sales, service, product configuration, and manufacturing tools, which is helpful for companies that are going digital with their businesses. When business processes are linked through CLM, the following get better:

• quote accuracy
• product turnaround time
• product quality
• customer satisfaction
• revenue