Use the Right Tools for Professional Tasks

Summary:

PIM systems offer greater functionality, flexibility and ease of use for managing product information compared to ERP systems, which are primarily focused on other business processes. Although disadvantages can theoretically be eliminated or reduced through additional programming, this results in higher project costs, longer implementation times, and a less flexible system. We are no longer in an IT age where software is reprogrammed until it fits the customer’s business requirements; instead, the right product is used that supports the company’s business processes and data models.

In Detail

Data Model

PIM systems are specially designed for the management of product data and therefore have a data model and corresponding functions that are precisely tailored to this use case. These include:

Maintenance hierarchy: A structure in which products are sorted and maintained.

Publication structures: Additional structures for the publication of products that can deviate from the maintenance hierarchy and are required for stores, marketplaces, or external classifications.

Inheritance: Information is inherited through the hierarchy from top to bottom, so that large-scale maintenance is generally not required.

Object data model: Different levels of the product (e.g. product, article, variant) that have different properties.

Auxiliary objects: It is very easy to create additional, non-saleable objects such as certificates, labels, auxiliary tables, etc. in the PIM system.

Class model: The class model of a PIM system has very simple functions for assigning unique attributes to different product types.

Contextualization: Different content depending on the target group, target market or target medium.

However, a PIM system does not have the business logic of merchandise management or product logistics.

ERP systems, on the other hand, concentrate on saleable items (SKUs) and warehouse logistics aspects. Higher-level structures such as articles over variants or products over articles as well as categories and product groups are often not provided for or have to be integrated manually. However, some modern ERP systems offer the option of creating such groups. The creation of publication structures or the management of multi-channel content is also not usually provided for.

Content Management

There are many functions available in a PIM system, including inline formatting and the management of your own text objects, so-called text modules, for texts that are used multiple times. Depending on the PIM system, glossary and terminology management tools are also integrated, enabling consistent and efficient content management.

An ERP system can usually only manage pure text content. Content often needs to be provided formatted or structured, such as in the form of bullet point lists, bold/italics, headings or in tables. If it is even possible to implement this formatting, the ERP system will fail at the last one because the formatting has to be adapted to the specific channel (example: HTML instead of XML).

Classification

In PIM systems, an intelligent classification system enables products in different categories to have specific, customized properties. This means that a product can have different properties to an article and a variant can have different properties to a product.

In contrast, properties in ERP systems are often mapped via general master data, which means that all saleable objects are assigned the same fields. This results in a large number of properties that are irrelevant for many objects, which makes data management inefficient and confusing.

Rich Media

PIM systems are often better designed to manage extensive content such as images, videos, documents, and other digital assets that are important for product presentation. They not only allow you to associate images with products, but also manage product-independent images and differentiate between main images, application images, detail shots, and images of color variants.

ERP systems typically do not have the same robust digital asset management (DAM) capabilities. Users either have to make do with very rudimentary functions or go to the trouble of integrating a separate DAM system. Without a comprehensive DAM system, key stakeholders such as the marketing team or photographers may not be able to be integrated efficiently.

Multi-Channel and Omnichannel Capabilities

PIM systems support the management and distribution of product information across different channels (e-commerce, print, mobile, POS, etc.) and ensure that the information is consistent and up-to-date. This means that the same text can be adapted for different target groups or channels and still be managed centrally. In addition, PIM systems allow products and their grouping and sorting to be defined individually for each channel, which enables a more targeted approach and better adaptation to different market requirements.

ERP systems, on the other hand, often have limited multi-channel capabilities. They can struggle to provide consistent product data in different formats and for different channels. This often leads to inefficient data management and increased effort in data

Role-Based and Process-Oriented User Interface

The user interface of a PIM system is specially designed for the various roles in the PIM process, such as product management, marketing or channel management. Even users who only research data and do not maintain it receive a user interface tailored to their needs.

In contrast, ERP systems mainly offer data entry screens that are customizable, but whose basic structure remains focused on data entry and not on quick data research.

Transfer of Information

In a PIM system, a hierarchical product tree is created in which information is inherited from the higher-level product to the items and variants below it. Changes to the product data therefore have an automatic and immediate effect on all relevant child objects. This significantly reduces the need for manual mass maintenance, as many processes run fully automatically.

In contrast, information in an ERP system usually has to be manually transferred to other objects via copying processes. Changes initially only affect the edited object and then have to be copied and pasted to all relevant objects. This not only increases the workload, but also the risk of errors during data maintenance.

SEO and Marketplace Optimization

PIM systems offer specialized functions for optimizing product information for search engines (SEO) and for adapting to the requirements of various online marketplaces. Manually created texts can be tailored to the technical and content aspects of a marketplace and optimized for SEO at the same time. Artificial intelligence is often used here to further increase performance.

In contrast, ERP systems typically do not have specific SEO functions or tools for marketplace optimization. Content is usually only available once, and for each new facet, the information has to be entered manually, which can severely impair the efficiency and effectiveness of the optimization processes.

PIM as Core Business

Many PIM systems are specifically geared towards product information management. The providers of these systems have in-depth expertise and ensure that their solutions are continuously developed to meet the current and future requirements of product data management.

In contrast, PIM is only a sub-discipline in ERP systems. The functional focus is usually on other business processes. An integrated PIM module is often not regularly updated or further developed, as the ERP provider’s focus is on other areas. This can lead to the PIM functionality in the ERP system lagging behind the specialized solutions.

Cost Efficiency & Speed

Implementing a specialized PIM system can be more cost-effective as it offers a variety of specific functions that often do not require extensive customization. These systems usually require less software development and offer more out-of-the-box PIM functionality. This allows the solution to be implemented faster, utilizing proven best practices and industry-specific templates that further reduce implementation efforts and associated costs.

Customization in ERP systems can be expensive and time consuming, especially when it comes to covering specific PIM requirements.

Partner Landscape

In the area of PIM, there is a well-developed network of implementation partners who specialize in product data, channel management, and e-commerce. These partners are familiar with the latest data models, processes, functions, and peripheral systems and can implement best practices quickly and efficiently.

In contrast, the implementation focus in the ERP area is on other aspects of company processes and data areas. As a result, specific PIM requirements often have to be developed and identified first, whereas PIM specialists already have the necessary expertise and experience.

Integration Options with E-Commerce Solutions

PIM systems can usually be easily integrated with other systems such as e-commerce platforms (Shopware, Shopify, Shopify Plus, Magento, Oxid, etc.), marketplaces (Tradebyte, ProductsUp, Amazon, Zalando, Intersport, etc.), content management systems (CMS) and prepress systems (Werk II Print Suit, InBetween).

An ERP system may not offer the same flexibility and integration capability, which can lead to additional customization costs and efforts.

System Comparison

Master Data
Texts
Product-Specific Classes
Rich Media (images, documents)
Multi-Channel Management
Prices
Transaction Data
Interface for PIM processes
Inheritance
Mass Maintenance
Core Business Product Data for E-Commerce
Configuration instead of Programming for PIM Functions
Merchandise Management
Implementation Partner with PIM knowhow
Master Data
Texts
Product-Specific Classes
Rich Media (images, documents)
Multi-Channel Management
Prices
Transaction Data
Interface for PIM processes
Inheritance
Mass Maintenance
Core Business Product Data for E-Commerce
Configuration instead of Programming for PIM Functions
Merchandise Management
Implementation Partner with PIM knowhow
ComparisonPIM SystemERP System
Master Data
Texts
Product-Specific Classes
Rich Media (images, documents)
Multi-Channel Management
Prices
Transaction Data
Interface for PIM processes
Inheritance
Mass Maintenance
Core Business Product Data for E-Commerce
Configuration instead of Programming for PIM Functions
Merchandise Management
Implementation Partner with PIM knowhow

GOT QUESTIONS? FEEL FREE TO ASK!

Each company has unique requirements, prerequisites, and data, which is why every PIM project must be approached individually. On behalf of Y1, I can offer you a customized solution and personally advise you. Get in touch by arranging an initial consultation.

Marc Kulow berät zu PIM-Lösungen, egal ob PIM-Integration, PIM-Upgrade oder allgemeines PIM-Projektmanagement.