Contact Elements is now SAP certified to interface with SAP S/4HANA.
The CONTACT Elements product lifecycle management (PLM) system is now certified to integrate with the enterprise resource planning (ERP) platform SAP S/4HANA.
This certification ensures synchronized data transfer and unified workflows between development, production and logistics. Effectively, it enables corporations to create one source of truth about their products.
Version 15.5 of Elements will be able to communicate with SAP’s cloud-based ERP system via standard workflows. This will align databases, like:
- Materials data
- Engineering bill of materials (BOM)
- Plant-specific BOM
- Product data
- Order data
- Technical changes
- Design documents
“Industry 4.0, or smart services, require end-to-end process chains in which product data from ongoing operations and corporate IT are consistently linked,” says Roland Drewinski, member of the management board at CONTACT Software. “In the wake of digitalization, the interoperability of software solutions is more than ever a top issue in companies.”
For example, by integrating these two systems, users will gain access to Elements’ open modularity and the artificial intelligence (AI), machine learning (ML) and advanced analytics capabilities of S4/HANA.
What’s the Difference Between ERP and PLM?
On the surface, ERP and PLM systems sound similar. They manage product information, costs, changes and BOMs. What sets these two systems apart are their uses and target audiences.
PLM systems are typically used in the development phase of a product’s lifecycle. As a result, it’s used by designers, engineers and manufacturers. PLM systems manage information like design iterations, simulations, CAD models and product design requirements.
ERP systems are used to help companies manufacture a product and take it to market. This means it also targets manufacturers; however, it’s also used by accountants, buyers and managers. ERP systems control information like inventory, purchases, distribution, labor and even human resources.
In short, PLM is focused on the data for product development and ERP is focused on the data for day-to-day business decisions.
How PLM and ERP Integration Benefits Companies
By integrating PLM and ERP systems, companies can rely on one source of truth throughout a product’s lifecycle. As a result, design engineers will be able to use current stock levels, material process, costs and customer orders to inform product development. For instance, will the product design use an affordable part that is also used on a current system?
Additionally, day-to-day operations can stay informed about upcoming products from development teams. This enables them to better plan for these products without affecting current or future operations.
Effectively, Integrating PLM and ERP improve the communication and efficiency of an organization.
Integrating these systems can also open the doors to new business models that are associated with the Internet of Things (IoT). For instance, a subscription service could be set up for customers that use sensors, S/4HANA’s ML algorithms and PLM BOMs to automatically order replacement parts when they are needed.
Finally, as Elements is an open modular platform, customers have the flexibility to expand their PLM system and integrate it with a multitude of third-party systems. Since Elements is connected to S/4HANA, there is a direct line from that third-party data to SAP’s on-premise, hybrid, public and private cloud capabilities like AI, ML and advanced analytics.
