Managing product information can work surprisingly well without a dedicated PIM system for quite some time. In the early stages of a business, spreadsheets, ERP systems, or an e-commerce platform's built-in product management tools are often sufficient. As the company grows, however, new sales channels, expanding product portfolios, and increasingly complex data management processes begin to emerge. At what point do these existing solutions stop being enough? How can you tell when your organization is ready to implement a Product Information Management (PIM) system? In this article, we explore the most common signs we see in growing businesses.
In this article, you will learn:
- when companies most commonly implement a PIM system,
- which challenges indicate the need to centralize product information,
- when Excel, ERP, or e-commerce platforms are no longer sufficient,
- what benefits a PIM implementation can deliver,
- how to prepare your organization for a successful PIM project.
How can you tell when your business is ready for a PIM system?
More and more organizations implement a Product Information Management (PIM) system not because they want to replace their existing tools, but because their current approach to managing product information can no longer keep pace with business growth.
Your organization may be ready for a PIM system if:
- product information is stored across multiple systems and spreadsheets,
- the same product is maintained by different people or departments,
- updating product data across multiple sales channels takes too much time,
- your business is expanding into B2B, B2C, or marketplace sales,
- your product catalogue requires multiple language versions,
- the number of distributors or business partners continues to grow,
- maintaining consistent, high-quality product information is becoming increasingly difficult,
- launching new products is taking longer than it should.
If your organization recognizes several of these challenges, it may be the right time to evaluate the implementation of a PIM system.
Insights from Tandemite implementations
Across Tandemite's PIM implementations, one pattern appears consistently. Organizations are most likely to invest in a Product Information Management (PIM) system during periods of rapid growth. Expanding into new sales channels, growing product portfolios, introducing additional business systems, or preparing for international expansion all increase the complexity of managing product information. At this stage, centralizing product data becomes one of the key enablers of further business growth and operational scalability.
What do companies use before deciding on PIM implementation?
Manufacturers still primarily use Excel files for product data management. Various databases or ERP systems are also popular. Occasionally, the information is completed and stored directly in the e-commerce system. Many companies do not have a well-thought-out strategy in this area. PIM software is something completely unknown to them. They handle the new difficulties by introducing temporary, quick solutions. But to adapt a growing organization to the needs of the modern market, more advanced and better-structured actions are needed.
Companies that do not modify their strategy, while still following the old methods but adding new sales channels, they face many problems. The data they manage is usually dispersed – processed by different employees and departments. The lack of a uniform structure of product information and tools for information control causes trouble. It makes it difficult to maintain standards related to the presentation of the offer (e.g. photos with specific dimensions, complete and uniformly described parameters and consistent descriptions). The same work may even be done many times over because it is impossible to find the files or descriptions required at a given time. This situation definitely makes development and optimal budget management difficult. Would a PIM implementation plan be a good idea? It would.
With many channels, it is difficult to maintain the essential integrity of the brand image integrity. Growing companies export product information to many sales and promotion channels. Among these, the most common ones are:
- e-commerce systems,
- mobile apps,
- B2B panels,
- stationery stores.
- price lists,
- offers,
- printed and electronic catalogues.
For international sales, language versions are added and adapted to the requirements of specific markets. It is necessary to maintain a consistent data structure in all these places.
Updates are time-consuming and long-lasting. Even if only one product parameter is changed, it can take months to update the information at every location where it is presented. Mistakes or omissions can be very expensive for the company, increasing the risk of a customer receiving a product that does not match the description, picture, or specification. Another problem is the inconsistency of price lists or offers. Some sales channels or partners may offer products withdrawn a long time ago or outdated prices.
Taking too long to market a product can result in the loss of many opportunities. Dynamic changes are a common occurrence on the market. Opportunities appear that only a few companies can take advantage of. The key factor of the success of such companies is their ability to react quickly. Ineffective management of product information and suboptimal processes constitute an impenetrable barrier at such moments. Even if a potential opportunity can be identified, it is impossible to react faster than the competition. This is when a company wants to enter a new market, launch new products quickly, or acquire a key customer.
Does it sound like your painful reality? Well, it doesn't need to be like this. If you have enough, let's talk and plan the implementation process of your new PIM software. Not convinced yet? Keep reading.
Why do companies decide to use a Product Information Management system?
Using the PIM system increases their scale of operations
The decision of PIM implementation is most often influenced by development. When the company is small, team members can easily communicate with each other. This means that they have good control over where materials are stored and with whom they are shared. However, as the organization grows, it is necessary to build and optimize processes in order to allow effective cooperation within an extensive team on a continuously increasing amount of data. Product Information Management implementation guarantees this effectiveness.
At this point, there is a need for a tool that will serve as the central storage for product information and data attributes and, at the same time, enable processing, searching, replenishment and automation of repetitive work. Safety is also becoming more and more important. Only authorized users should have access to particular resources, and only to a specified extent.
When choosing a PIM system, it is worth paying attention to its scalability so that it supports the development of the offers, number of channels, and product data structure.
Implementation and development of multichannel sales (omnichannel)
Multichannel sales are a frequent impulse for full PIM implementation in the organization. Having complete and consistent product data is key to the omnichannel strategy. The company needs to be able to effectively control whether all product information meets deliberately set standards. Without a PIM system, it can be really hard; product data will turn into chaos.
To use the potential of a particular channel, the presented materials should be adapted to its specificity. For example, the customer experience of a B2B partner feels different from an individual customer of an online store. With the PIM system, thanks to automation and central information storage, it is possible to generate appropriate data sets and update and export them to designated locations rapidly. All product data is presented exactly how you'd imagine it.
International expansion
In the context of product information, expansion into other markets is always a significant challenge, not only in terms of translating all descriptions, instructions, and materials into one or more languages. Often, there are also legal restrictions or business requirements that make it necessary to modify and supplement certificates, instructions, or specifications with those expected in a specific market.
The amount of product information and its distribution channels grows dynamically at this stage. To be able to control its quality and consistency and ensure a smooth flow, it is worth preparing in advance by implementing a PIM system throughout the organization.
Remote cooperation
The PIM system is a tool that supports remote cooperation. The restrictions of the COVID-19 outbreak have demonstrated the importance of good communication. Daily changes in working style were a necessity. In such a situation, the PIM solution becomes a tool that allows for seamless work with product information, and data modelling, even when the team is dispersed.
What motivates companies: four main benefits of PIM solution
I. Product data centralization
Thanks to a PIM system, extensive and diverse product data can be collected in a single location. Through the central system, authorized individuals can join the process, and expand and update information on multiple data. Everything is easy to find, and there is no confusion about which product data is up-to-date.
II. Process automation and improvement
The PIM solution integrates with many systems, both within the organization and with the tools used by the customers and business partners. It automates data reception, processing, and data import or export. Much of the repetitive work becomes possible to automate.
Whenever you correct an error, make changes or additions to product information through the PIM system mechanisms, the information will be instantly and automatically updated in all integrated channels.
III. Controlled quality of product information
The PIM system allows you to specify which data for a given product, product group or product category is required, optional, or redundant. A uniform information structure is achieved. When new products are introduced, the system will indicate which data needs to be supplemented and what the data quality criteria are.
IV. Eliminating mistakes and reducing costs
Successful implementation of the PIM platform requires the relevant processes to be properly identified and automated. A large part of repetitive tasks previously performed manually is transferred to the system. This allows for more efficient use of resources.
Summary: When is the right time to implement a PIM system?
Implementing a Product Information Management (PIM) system is often a natural step as an organization grows. An expanding product catalogue, additional sales channels, more business partners, and multiple language versions all increase the complexity of managing product information. At this stage, spreadsheets, ERP systems, or built-in e-commerce tools often become difficult to scale efficiently.
If your team is spending more and more time maintaining consistent product data, preparing content for different channels, or updating product information across multiple systems, it may be the right time to consider a centralized PIM solution. A well-designed PIM system not only centralizes product information but also improves collaboration between teams, automates repetitive processes, and provides a solid foundation for future business growth.
Are you planning to implement a PIM system or wondering whether your organization is ready for one? Get in touch with the Tandemite team. We'll assess your current product information management processes, help define your business requirements, and design a solution tailored to your organization's workflows and long-term growth strategy.
FAQ
How can you tell when your business needs a PIM system?
One of the clearest signs is the growing number of products, sales channels, and people working with product information. If product data is spread across multiple systems, updates take too long, and maintaining consistency is becoming increasingly difficult, your existing tools may no longer be able to support your organization's growth.
Can Excel replace a PIM system?
Excel works well for smaller product catalogues and relatively simple workflows. As a business grows, however, maintaining data quality, coordinating multiple contributors, and updating product information across different sales channels becomes increasingly challenging. In these situations, a PIM system helps centralize product information, streamline processes, and reduce the risk of errors.
Does a PIM system replace an ERP?
No. ERP and PIM serve different purposes. An ERP system is primarily designed to manage operational and business processes, while a PIM system focuses on managing and enriching product information. In most organizations, the two systems work together through integrations that enable them to exchange data.
When does a PIM implementation deliver the greatest value?
A PIM system delivers the greatest value to organizations expanding their product portfolio, developing multichannel sales, or entering international markets. In these scenarios, centralizing product information and automating workflows make it easier to publish accurate data quickly and maintain consistency across all sales channels.
Should you implement a PIM system before expanding internationally?
Yes. Expanding into new markets usually requires multiple language versions of product information, compliance with local market requirements, and support for additional sales channels. Implementing a PIM system before international expansion makes these processes much easier to manage while ensuring product information remains consistent across every market.
How long does it take to prepare an organization for a PIM implementation?
The preparation phase depends on how well product data is currently organized and how complex the existing business processes are. It typically includes analyzing data sources, identifying data owners, defining product information standards, and planning integrations with other business systems. The better an organization prepares, the smoother the implementation is likely to be.
How should you prepare your organization for a PIM implementation?
Preparation should begin with organizing existing product data sources, identifying the people responsible for maintaining product information, mapping all publication channels, and reviewing the required integrations with ERP, CRM, and e-commerce platforms. It is also worth defining a consistent product information standard and considering future product expansion and additional sales channels during the planning stage.
