Importance of product management in a business

Every business, big or small, especially in the manufacturing industry deliberately or instinctively makes use of product management. Businesses in the manufacturing industry create products and cannot survive one day without having a product management system in place. The manufacturing process generates three types of products- co-product, by-product, and scrap.

Co-product: The product that generates alongside the main product. Also known as the intermediate product, co-products can be separately used to create another product or for direct sales. For example- methane gas is the co-product in the production of gasoline.

By-product: It is the secondary product that generates in the manufacturing of the final product. Take, for instance, molasses, which is a byproduct of refining sugar.

Scrap- The waste which generates from the manufacturing of the finished product is called scrap. Depending upon its nature, it can be either recycled or thrown away.

Having mentioned the basics, let’s move on to why you need a product management system for your business:

You understand the consumer needs:

An ERP which integrates with a product management system will help you identify and understand the changing customer’s shopping patterns and demands. Since a product management system directly interacts with the consumers, it will give you an insight into the kind of product your target audience is looking for. Thereby a product management system will empower your development team. They will manufacture products that deliver to the consumer’s needs with specific features.

Develop a product roadmap:

An ERP which integrates with a product management system will help your business create a roadmap with the insights it will provide for the new products. Product managers can leverage this data to create a roadmap for the new products.

Render impressive support service:

The product management system will provide continuous data and information on whether or not the customers are liking your product. This will thus help you bridge the gaps and improve the product to deliver better service. Furthermore, a product management system in place will give you the power to promptly resolve consumer’s queries. Thereby you will offer excellent customer support. This will prove significantly beneficial to your business which will have a satisfied and loyal base of consumers.

A competent marketing strategy:

Having a product management system in place will provide you with ample data and insights that will help you know and understand where you are lagging. You will also know what you can do to improve the same to provide consumers with a better user experience. You will be able to devise and plan strategies that will directly hit the target audience, boosting your return on investment.

An ERP that integrates with a robust product management system will exponentially minimize the possibility of either overstock or an under-stock inventory. There will be clear visibility in your business processing which will maximize the profit by improving your decision-making capability.

We, at Tayana Solutions, implement Acumatica ERP integrated with a proficient product management system that will simplify inventory management and ensure profitability.