Find out everything you need to know about PIM systems
Today, a PIM system is indispensable for companies that want to manage product data centrally and use it across all channels. In times of digital transformation, correct and consistent product information is a clear competitive advantage. Find out here what a PIM is, how it can be integrated and what you should look out for when making your choice.
What is a PIM system?
A PIM system serves as a central platform for managing, enriching and distributing product data across all sales channels. It enables the central storage of information such as technical specifications, prices, images, marketing texts and translations and ensures that these are available quickly and in consistent quality.
In today's globalized and digitized world, where products are often offered through multiple sales channels, it is crucial that the product information provided is consistent, up-to-date and accurate. A Product Information Management (PIM) system simplifies this process considerably by facilitating the exchange of data between different departments and systems and ensuring the quality and consistency of product data.
A PIM system provides a central platform for these requirements, helping companies to efficiently manage, structure and distribute all product data. It is often used in companies that sell numerous products and whose data comes from different sources. These systems ensure that all relevant information such as product descriptions, prices, technical specifications, images and videos as well as translations are stored centrally in one place. The aim is to keep product data consistent and up-to-date for different sales channels (e.g. e-commerce websites, marketplaces, print catalogs).
PIM systems improve data quality, reduce redundancies and facilitate collaboration between teams and departments. They also make it possible to adapt and expand product information to new markets more quickly, which shortens time-to-market and optimizes customer communication.
There are a number of features and functions that all PIM systems have:
For whom is the use of a PIM system worthwhile?
A PIM system is particularly suitable for companies that need to manage a large amount of product data. This applies above all to industries such as electrical engineering/mechanical engineering, construction elements/building materials, medical technology and the consumer goods industry. Companies that are active in several sales channels (e.g. online shops, marketplaces, catalogs, branches) or operate internationally benefit in particular from a PIM system, as it greatly simplifies and accelerates the management of product information. However, small and medium-sized companies can also gain a competitive advantage by introducing a PIM system by making processes more efficient and minimizing sources of error.
A PIM system is particularly worthwhile for the following types of companies:
1. companies with extensive product portfolios
These companies have to manage enormous amounts of product information for different countries, target groups and channels. With a PIM system, this information can be collected and maintained centrally, which significantly reduces the effort and complexity of data management.
This category includes, for example
2. companies with complex products
In industries with technically demanding products or products that require explanation, it is important to provide detailed and accurate information about specifications and functions. A PIM system can clearly structure complex product data so that customers and sales partners have access to complete and accurate information at all times.
Exemplary companies here are
3. manufacturers with variable products
Many manufacturers offer individualized products or variants of their standard products. A PIM system makes it possible to manage these variants clearly and to update all relevant data quickly, which supports both sales and production.
These manufacturers include, among others
4. companies with many distribution channels
When a company markets its products across many sales channels (e.g. its own e-commerce platforms, marketplaces, stores, printed catalogs, mobile apps), it is crucial that product information is consistent and current. A PIM system ensures that the same, correctly maintained data can be provided for all channels.
There is also the question of traceability: when and in which channels were which products and information published?
This type of company includes, for example
5. companies with international sales
A PIM system should significantly manage translations and country-specific requirements. Companies operating in multiple countries or regions need to provide their product information in different languages and adapt to regional differences. PIM systems offer tools to manage and automate these tasks.
This is worthwhile, for example, for
6. companies that rely on high data quality
In industries where precision and data quality are crucial, a PIM system is essential. These include, for example, companies in the healthcare, medical technology or food industries. The PIM system ensures that product information always complies with legal requirements and industry-specific standards.
This is important, for example, for
7. companies that want to create personalized customer experiences
A PIM system makes it possible to adapt products and their information precisely to the target groups and use them for personalized offers. This is particularly important in e-commerce, where relevant, detailed product information and filter functions increase customer satisfaction and sales.
In this area, there are
Conclusion
The use of a PIM system is particularly important for companies that:
A well-implemented PIM system helps these companies to increase efficiency, reduce manual errors and provide consistent, high-quality product information
What are the advantages of using a PIM system?
A PIM system is particularly useful for companies with numerous products that require explanation and extensive product catalogs, as well as for companies that need to manage their product information consistently and efficiently across different sales catalogs. However, a PIM system is not just a technical tool, but above all a strategic instrument for optimizing product data management.
The introduction of a PIM system brings numerous advantages:
Not having a PIM system leads to inefficient processes, higher costs, delayed market launches and reduced competitiveness. Companies that want to be successful in the long term should consider the implementation of a PIM system as a central measure to improve their business processes and market position.
What cost savings can result from using a PIM system?
By centralizing and automating processes for handling product data, companies can achieve significant cost savings. The reduction of manual effort and the avoidance of redundant data maintenance processes lead to increased efficiency. In addition, errors caused by incorrect or incomplete product information are minimized, which relieves the burden on customer service and reduces return rates.
Marketing and sales costs can also be reduced through the automation of the provision of data for various channels.
The introduction of a PIM system can lead to significant indirect and direct cost savings. These can be achieved primarily through
Studies and field reports
Studies by market research companies such as Gartner and Forrester have shown that companies that have implemented PIM systems have achieved significant cost savings and efficiency gains.
Many companies report concrete cost savings and a positive return on investment (ROI) following the introduction of a PIM system. These savings result from improved data quality, increased efficiency and faster time to market.
In summary, it can be said that the introduction of a PIM system offers numerous opportunities to save costs and increase efficiency, which in turn can have a positive impact on overall company performance.
What should you look out for when choosing a PIM system?
What pitfalls should be avoided when introducing a PIM system?
Here are some of the most common pitfalls and risks that should be considered:
Implementing a PIM system can seem complex at first glance, as it requires careful integration into existing processes. However, with an experienced partner at your side, well thought-out planning and a competent project team, this challenge becomes manageable. With a structured approach, potential obstacles can be identified early on and effectively avoided so that the implementation can be carried out smoothly and successfully.
What developments and optimizations can be expected in the future through the use of AI?
What should a catalog of requirements for a PIM system look like?
A well-founded and precise catalog of requirements is at the heart of every successful PIM system implementation. It ensures that all functional, technical and organizational requirements and expectations of the system are clearly and comprehensively documented.
A well-developed catalog lays the foundation for the entire selection and implementation process and enables all relevant stakeholders - from IT and product management to marketing - to be involved at an early stage. This ensures that the different needs and perspectives are taken into account in order to select an optimal system that meets the company's objectives.
The catalog of requirements not only serves as guidelines for the selection of a suitable PIM system, but also as a basis for the successful implementation and later evaluation of the system. With a detailed catalog, potential PIM solutions can be precisely compared, possible risks identified at an early stage and the long-term performance of the system ensured. The catalog thus creates clear criteria to ensure that the selected system manages product data efficiently, supports the multi-channel strategy and sustainably improves data quality.
How can management and employees be involved?
The successful introduction of a PIM system requires the active support of management and the involvement of all relevant employees. It is important that the benefits of a PIM system are clearly communicated and that all departments understand the necessity and benefits of centralized data management. This is the only way to ensure that the system is successfully introduced and used.
On-premise or cloud?
Companies have to decide whether they want to operate their PIM system as an on-premise solution in their own data center or rely on a cloud solution. Both options have advantages and disadvantages: While an on-premise solution often offers more control and data security, a cloud solution can score points for its flexibility and scalability. The choice depends on the company's specific requirements.
Open source or licensed software?
When choosing a provider, the question arises as to whether an open source system or software that requires a license is more suitable. Open source solutions often offer more flexibility and lower costs, while licensed (standard) solutions often offer more extensive support and regular updates. Companies should weigh up this decision carefully and tailor it to their individual needs.
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