8 reasons why PIM is essential for product data (and what other systems get wrong!)

Our recent post discussed product data sources, explaining the importance of moving certain product data into a PIM system.

Now, we’ll explore:

• Why storing product details in these systems isn’t the best practice;
• Why a PIM offers a better approach for data sharing and synchronization.

Integration is a term that matters a lot here.

The key to success is integrating these systems with a PIM, rather than storing product information directly in them.

Let’s unpack it step by step!

Avoid common mistakes: Benefits of integration with PIM over storage in other systems

1. Specialized features of PIM

PIM advantages:

• Provides tools for localization, data validation, and enrichment.
• Handles complex taxonomies and multi-channel requirements.
• Allows for efficient collaboration among teams.

Why other systems can't do this? CRM, CMS or ERP are not designed for advanced product data management workflows, which can result in limited functionality and inefficiencies.

2. Role-specific focus of other systems

CRM systems

• Role: Designed to manage customer relationships, not product data.
• Why not store product information here? Storing product data here isolates it from other essential systems like eCommerce platforms and limits usability. It doesn’t support enrichment processes like localization or SEO optimization.

ERP systems

• Role: Focuses on backend operations such as accounting, procurement, and supply chain management.
• Why not store product information here? ERP systems primarily handle transactional and logistical data, such as SKUs, pricing, and stock levels. They lack the flexibility and tools needed to manage rich, customer-facing product content, such as descriptions, multimedia assets, and marketing attributes.

Tip: ERP systems often hold highly sensitive and complex data, making it crucial to prioritize privacy and compliance when integrating with a PIM.

DAM systems

• Role: Manages all types of digital assets.
• Why not store product information here? While DAM integrates with PIM to link media with products, it is not equipped to handle detailed taxonomies, localization, or product hierarchies.

CMS systems

• Role: Manages content and presentation for websites and digital platforms.
• Why not store product information here? Product data stored in a CMS is difficult to standardize, validate or enrich, and often becomes siloed for specific web channels only.

OMS systems

• Role: Focuses on order processing, inventory tracking, and fulfillment.
• Why not store product information here? Data in OMS is limited to inventory and operational data, lacking advanced enrichment features that PIM systems provide (such as detailed descriptions, images, or SEO metadata) which are critical for marketing and sales.

E-commerce platforms

• Role: Facilitates online product display, sales, and customer interactions.
• Why not store product information here? Each platform has its own schema, creating inconsistencies when synchronizing data across multiple channels.

PLM systems

• Role: Manages product development and lifecycle data, including technical specifications, engineering data, and design processes.
• Why not store product information here? PLM systems are optimized for technical data used during product development. They are not equipped to manage the enriched, customer-facing data required for marketing and sales.

3. Centralized source of truth

Problem: As per ISG Software Research, 48% of organizations use tools that don’t align well, and 43% don’t keep their information in a single, central location.

Have you ever wondered why your product data never seems to be up-to-date? Without a dedicated PIM, product data gets fragmented across multiple systems, making it challenging to ensure accuracy, consistency, and reliability.

Solution: A PIM acts as the single source of truth, centralizing product data from various sources and distributing it consistently to other systems.

4. Data consistency across channels (multichannel and omnichannel support)

Problem: Systems like CMS or eCommerce platforms often support only channel-specific data, leading to discrepancies when product information needs to be updated across websites, marketplaces, mobile apps, and catalogs.

Solution: Many businesses believed that managing product data from multiple platforms was sufficient, until they discovered PIM.

PIM software creates a seamless data flow that supports business operations. All systems – whether ERP, B2B eCommerce or others – pull their product information from the PIM, eliminating the need for redundant updates and avoiding duplication.

5. Scalability and flexibility

Problem: Storing product information in multiple systems creates bottlenecks when scaling operations, launching new channels, or entering new markets.

Solution: A PIM system can handle the growing complexity of managing product data as businesses expand into new regions or channels. It supports localization, multiple taxonomies, and enriched product information at scale.

6. Simplified maintenance and governance

Problem: Updating product data across multiple systems manually is error-prone and time-consuming, leading to inconsistencies and compliance issues.

Solution: By moving product data into a PIM, businesses reduce the effort required to update and maintain accurate information. PIM distributes the changes automatically to all integrated systems. This also helps ensure compliance with regulations and standards.

7. Faster time to market

Problem: Fragmented product data across systems slows down new product launches, as data needs to be manually aggregated and uploaded to each channel.

Solution: A PIM accelerates time to market by providing a centralized, enriched, and ready-to-distribute product dataset that integrates seamlessly with sales and marketing channels.

8. Future-proofing the system architecture

Problem: Storing product information in non-PIM systems creates technical debt, making it harder to integrate additional systems.

Solution: A PIM acts as a flexible, future-proof foundation, easily integrating with new sales channels.

Practical recommendations

Here’s what we recommend:

1. Assess your current systems: Map out which systems and tools (spreadsheets, CRM, OMS, external databases) currently handle product data and identify pain points.

See a list of popular places to find information about your products.

2. Define data governance and bring all product-related information into a PIM: Establish clear rules for how product data is created, enriched, validated, and distributed across systems. It ensures products are optimized and market-ready for any channel.

3. Integrate gradually: Begin by integrating high-priority systems, such as eCommerce platforms and ERP, before expanding to other systems like CMS or CRM.

From now on, the PIM allows you to share up-to-date and reliable product information seamlessly across every platform.

Key takeaway – product information needs PIM

A robust PIM system is not just a tool; it's a game-changer for data coherence.

Managing product data efficiently is essential for driving growth, improving customer experience, and staying competitive in today’s market. While systems like CRM, ERP or DAM, each have unique strengths, none can match the centralized, enriched, and scalable capabilities of a PIM.

By integrating with these systems instead of storing product information in them, a PIM system ensures:

• Centralized data governance.
• Consistent and accurate product information.
• Scalability for future needs.
• Optimal collaboration across teams and systems.

Start small, integrate strategically, and watch as your operations become more efficient and your product data more impactful.

Would you like a tailored recommendation on setting up such integrations? Schedule a free consultation with our team to talk about your business needs. We will help you choose a PIM system that connects easily with your existing tech stack and supports your growth needs.