Advantages of a PIM system
Product Information Management (PIM) systems are a popular solution for managing product information and this market is growing. This is due to the increasing importance of consistency and accuracy within product data. Here we will discuss the pros and cons of PIM systems in detail and show how these pros and cons differ for different industries and types of companies.
Below are the most frequently mentioned benefits of a PIM system.
Increased efficiency and productivity
PIM systems automate many of the manual tasks involved in managing product information, such as data enrichment or synchronisation. This saves employees time and reduces the risk of errors. This is especially true if you also want to comply with various data standards. With the PIM system offered by SRC, you automatically comply with data standards such as GS1, ADAM, PS in foodservice and 2BA ETIM.
Improvement in consistency and accuracy
PIM systems help you avoid inconsistencies and errors in product information. This ensures that customers have access to the same, up-to-date information regardless of the channel they see it on. The PIM system is one central database, something also called ‘Single Source of Truth’. This product information can also be used by cooperation partners, suppliers or other stakeholders who need product information. A PIM system is suitable for B2B, B2C and can also be used internally.
Scalability
As a company grows, the amount and complexity of product data increases. A properly scalable PIM system safeguards this growth, without system performance being degraded. This means you can easily add new product lines, effortlessly support more users and manage more complex data structures without redesigning or replacing the system. Additionally, scalability enables flexibility when expanding into new markets or sales channels.
Faster time-to-market
Using a PIM system means that a company is able to bring new products to market faster. You save time by collecting, enriching and distributing data faster. After all, carrying out these processes from a single, central system is faster and easier. Especially in larger organisations, it is clear that a PIM system saves a lot of time, as PIM functionalities such as ‘workflow’ ensure that departments work together optimally.
Better customer experience
Accurate and detailed product information improves the customer experience. Because you avoid ambiguities about product specifications, you achieve higher conversion rates, fewer returns and greater customer loyalty.
Omnichannel optimisation
A PIM system supports organisations to provide a seamless product experience across multiple channels. Without a PIM system, there is no consistency across all sales platforms and expanding to new channels is time-consuming and error-prone.
Disadvantages
Implementation costs
The implementation costs of a PIM system are mainly due to complex or customised solutions. This is often a barrier with smaller companies or start-ups with limited budgets.
Technical challenges
Integrating a PIM system with existing IT infrastructures is technically challenging. This requires expert knowledge and resources.
Training and adoption
Employees need sufficient training to be able to use a PIM system effectively. It takes time to get everyone on board and fully adopt a system.
Maintenance and updates
Like any other IT system, a PIM system requires regular updates to keep functioning efficiently. This entails that the departments working with a PIM system need to devote time and attention to keeping it going.
Dependence on suppliers
To use a third-party solution, a company depends on the support and updates offered by a software vendor. This leads to potential supplier management risks. At SRC, we are open and honest about this and explain to potential customers exactly how to minimise these risks.
Advantages and disadvantages according to type of business
Below, we discuss the pros and cons of PIM systems for specific companies.
E-commerce companies
Within e-commerce, product information has a direct impact on customer experience and sales. A webshop should provide as much information as possible to the customer, otherwise the customer will not complete the purchase. Here, a PIM system helps ensure consistency of data across channels and accelerates the time-to-market for new products. This provides flexibility and additional opportunities such as expanding into new markets.
Retail organisations
In retail, a PIM system helps manage product information for physical shops. The system accelerates the launch of new products, it promotes collaboration between departments and increases agility in a dynamic market. For example, think of markets that are trend-sensitive such as fashion or interior design.
For smaller e-commerce companies or retail organisations, the cost and complexity of a PIM system can be challenging, especially if there is no dedicated IT team available. Fortunately, SaaS (Software as a Service) offers a solution in that case. SRC therefore offers customers a SaaS solution.
Pros and cons according to industry
Below, we discuss the pros and cons of PIM systems for specific industries.
DIY
For the DIY market, where products often contain a variety of specifications and instructions, PIM presents product information in a standardised and easy-to-understand way. Collecting this information would otherwise be time-consuming. Moreover, this information should correspond to various industry standards. The PIM system offered by SRC incorporates into the application all the applicable validations against the GS1 and ETIM standards that are applicable in the DIY industry.
Healthcare
In healthcare, a PIM system ensures consistency when it comes to medical products and equipment; in this industry, it is indispensable for safety and regulatory compliance. Because the healthcare sector is under strict regulation, sometimes significant adjustments are needed to meet specific standards and regulations.
Food industry
In the food industry, a PIM system helps manage and distribute product information on ingredients, nutritional values, allergen information and best-before dates. This helps companies meet food safety standards and regulations. This is a major challenge, given that the food industry often has to deal with changing information due to changes in recipes, new legal regulations or changes in packaging. As a result, there is a constant need for updates and maintenance of the data models in the PIM system.
At SRC, we comply with classifications such as GDS, GS1, ADAM, PS in foodservice and 2BA ETIM as standard. This benefits all our customers and we are unique in this regard. This represents a huge advantage that SRC’s PIM system has compared to other systems.
Stop manually processing product information and maintain control in all phases of product information management.
