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PLM vs ERP: What Are the Differences?

Did you know that 27% of employees in a company use the ERP system?

It’s difficult to understand how some companies have stood the test of time without ERP systems considering their usefulness. However, with so many different ERP solutions on the market, it’s hard to invest in something that won’t work for you.

Are you trying to decide between PLM vs ERP? If so, this article will help you understand the differences between ERP and PLM systems to make an informed recommendation. Keep reading this ERP and PLM guide to learn more.

What Is PLM?

PLM (Product Lifecycle Management) is software that helps companies to manage the product lifecycle. This starts from design to retirement. 

PLM software is usually expensive and requires a lot of training to use. However, it provides a lot of features and functionality. This helps companies manage their product lifecycle.

What Is ERP?

Erp (Enterprise Resource Planning) is software that helps companies to manage their business processes. Both software have their own advantages and disadvantages. Erp software is usually less expensive and is easier to use. However, it does not provide as many features and functionality as PLM software.

The difference between PLM vs ERP software

Product lifecycle management (PLM) and enterprise resource planning (ERP) are two software solutions. They are used by organizations to manage different aspects of their businesses. Here are the key differences:


PLM software is focused on managing the product development process. On the other hand, ERP software is focused on managing the business operations of an organization. 

Broadly speaking, enterprise resource planning (ERP) systems help businesses manage day-to-day operations such as accounting, human resources, and inventory. In contrast, product lifecycle management (PLM) systems focus on managing a product from inception to retirement.


PLM software typically includes features for managing product data, engineering changes, and product approvals. ERP software like NetSuite ERP Competitors typically includes features for managing financial data, customer data, and supplier data.

Product Users

PLM is typically used by manufacturers and other companies with complex product portfolios. Meanwhile, ERP is more common in organizations with less complex products and operations.


ERP systems help businesses by automating and integrating core business processes. This gives companies real-time visibility into their operations, which leads to better decision-making. This can also lead to more fragmentation and data silos within an organization.

PLM systems, on the other hand, help businesses manage the product development process. This includes designing products and collaborating with stakeholders.

PLM systems help businesses get products to market faster and improve profitability. This allows for better coordination and efficiencies throughout the product development process.

Making the Decision

Organizations can choose to use either PLM vs ERP software or both. Each type of software has its own advantages and benefits. PLM is more costly and complex, while ERP is less costly and complex. 

So, if you’re looking for a complete solution, PLM is the way to go. But if you’re just looking for something to manage your finances and operations, ERP is a good option.

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