In the simplest terms, Product Data Management or PDM system serves as a product and process knowledge repository which promotes secure data exchange and integration among all the stake holders of the value chain- including design engineers, project managers, sales mangers, users, and QC managers.
A PDM system is a secure vault for storing CAD models, drawings, BOM, and other metadata of the product. The picture below shows a typical PDM system structure. (Click the image to enlarge.)