What is PIM? The key technology for efficient product data management explained in a nutshell

PIM as a success factor: what Product Information Management is and what competitive advantages it creates in omnichannel retail

Product data plays a central role in the digital world. Customers expect consistent, detailed and up-to-date information at all touchpoints. However, managing this data poses challenges for many companies: Data silos, incorrect information and time-consuming processes lead to inefficiencies. A PIM system (abbreviation for Product Information Management) offers a solution. It centralizes and optimizes product information and makes it available for all sales channels. But what exactly is a PIM, how does it work and why is it indispensable for companies today?

The definition of Product Information Management

A PIM system is a central software solution that supports companies in managing, optimizing and providing their product data.
It acts as a "single source of truth" that bundles all product information -
from technical data and descriptions to images, videos and marketing texts - in one place.

The focus of a PIM is on the consistency and up-to-dateness of product data - regardless of whether it is used in an online store, on marketplaces or in print media. This distinguishes PIM software
from systems such as ERP (Enterprise Resource Planning), which focus on operational
business processes, or CMS (Content Management System), which manage content for websites.

Grafik, die die Schnittstellen eines PIM Systems darstellt. Die Quellen der Produktdaten und die verschiedenen Ausgangskanäle der Produktdaten.

How does a PIM system work?

The functioning of a product information management system can be divided into three central phases: Data Collection, Data Enrichment and Data Distribution. Each phase plays a crucial role in ensuring that product information can be efficiently managed and seamlessly delivered across multiple channels.

Data collection: Creating a solid, central basis
The first step in a PIM system is to collect all relevant product information from various sources. These sources can be internal systems such as ERP or DAM (Digital Asset Management), external supplier data or manual entries. The aim is to bundle all data - from technical specifications and prices to media assets - in one central location. A major advantage of PIM solutions is their ability to import data automatically. Thanks to interfaces and integrations, data sources can be linked together, reducing manual errors and speeding up the process. .

Data enrichment: Ensuring quality and consistency
After collection, the product data is enriched and optimized.
This process consists of several important steps:
Data structuring and classification: defining uniform attributes, categories and relationships between products.
Validation: Ensuring that the data is complete and error-free. Automatic checking mechanisms help to identify and eliminate inconsistencies.
Enrichment: Addition of descriptive texts, high-quality images, videos and other content required for specific sales channels.
Multilingualism: Translation of product information to effectively serve global markets.

Data distribution: The right information in the right place
In the final step, the PIM software ensures that the optimized product data is automatically forwarded to the respective sales channels. These include:
E-commerce platforms such as online stores or marketplaces.
Print catalogs, for which print-ready data is provided.
POS systems (point of sale) for stationary retail.
Marketing tools to support campaigns or for integration into CMS systems.

What product information can be processed in PIM software?

Technical specifications

Detailed product information such as dimensions, colors, materials, ingredients and technical details that describe the physical and functional properties of the product.

Icon eines Datenblattes mit einem Zahnrad für den Begriff Technische Daten.

Marketing and content data

Appealing product descriptions in multiple languages, images, videos, storytelling elements and other marketing-relevant media content.

Usage information

Information on using the product, such as operating instructions, installation videos, care instructions or maintenance tips.

Icon für einen Beipackzettel mit einer Produktbeschreibung.

Price and sales information

Prices, discounts, availability status and delivery times that are relevant for sales and customer communication.

Logistics and distribution data

Information such as EAN/GTIN, packaging sizes and types as well as details of suppliers and production sites.

Icon eines Lieferwagens für den Begriff Lieferantendaten.

Customer-specific data

Individual price lists, specific packaging or shipping requirements and other customer-related information, especially in the B2B sector.

Icon einer Person im Kundenservice für den Begriff Kundendaten.

Legal & regulatory information

Safety data sheets, certificates, declarations of conformity (such as CE markings, ISO standards or REACH) and other legal information required depending on the product category.

The advantages of a PIM system in detail

Product Information Management solutions offer numerous advantages that have a positive impact on both the internal processes of a company and the customer experience:

Greater efficiency

Centralized data management enables faster updating and distribution, reduces workload and promotes better collaboration between teams.

Better data quality

Automatic validation mechanisms minimize errors and ensure that all data is complete and correct.

Cost savings

A well thought-out IT infrastructure reduces costs through optimized processes and reduces manual effort.

Omnichannel capability

The automatic distribution of data on different platforms increases reach and accelerates the market launch of new products.

Improved customer experience

Consistent and high-quality product data strengthens trust and drives the purchase decision. This leads to higher conversion rates and reduced returns.

Scalability

A PIM system grows with the requirements of the company and is particularly suitable for companies that want to expand internationally.

For which companies is the introduction of a PIM worthwhile?

A product information management system offers companies a strategic solution for efficiently managing product data and overcoming challenges such as large product portfolios, internationalization and a high degree of digitalization. The central management of translations, local units of measurement and legal requirements is particularly essential for internationally active companies in order to implement country-specific requirements quickly and efficiently.

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