PIM System: Manufacturer vs. Retailer
Product Information Management
Digitalisation and the associated data flow have significantly changed the management of product information. For many companies – both manufacturers and retailers – a Product Information Management (PIM) system has become indispensable. However, although both groups have similar requirements, there are significant differences in the way they utilise a PIM system. In this article, we look at the specific requirements of manufacturers and retailers and how a PIM system benefits both sides.
Challenges faced by manufacturers
For manufacturers, the focus is heavily on the creation and maintenance of product data. The most common challenges are:
- Complex product data: Manufacturers often have to manage detailed technical information that needs to be prepared differently for different target groups. This can lead to complex data structures.
- Product variants and configurations: Manufacturers often offer several variants of a product (e.g. different colours, sizes or technical specifications), which makes data management much more difficult.
- Global markets: Manufacturers that operate internationally often have to make product and region-specific adaptations. This includes the provision of product data in different languages and formats, which can vary depending on the market.
- External factors: Manufacturers are under constant pressure to respond flexibly to changes in the global supply chain, market trends and economic fluctuations. Agility is crucial in order to quickly adapt both production and the product portfolio and utilise scaling potential.
- Large number of channels: Manufacturers generally sell their products not only via retailers, but also directly. This results in a large number of sales and marketing channels, such as their own online store, B2B marketplaces or direct sales to end customers, which need to be managed efficiently.
Challenges faced by retailers
Retailers are focussing on consolidating and managing the product data provided. The biggest challenges include:
- Data quality and consistency: Retailers often receive product data in different formats and with varying quality from different manufacturers. This data must be prepared, standardised and enriched in order to distribute it consistently and error-free across all sales channels.
- Multichannel management: Retailers need to present their product information across multiple channels (online stores, marketplaces, print catalogues, etc.). The channel requirements often differ greatly, which makes data preparation complex.
- Fast response times: The online world moves fast and retailers need to be able to update price changes, stock levels or new product variants in real time to remain competitive.
- Customer expectations: Retailers are faced with the challenge of preparing their product information in such a way that it meets the expectations of end customers. This concerns both the personalisation of the content and the user-friendliness of the presentation.
- Internationalisation: Entering international markets brings additional challenges such as multilingual product descriptions, different currencies, legal requirements and localised marketing strategies. Retailers must ensure that their product information and presentations are adapted to the specific requirements of the individual markets.
PIM Systems: Different requirements from manufacturers and retailers
Today, PIM systems are essential for efficiently managing product data and making it available across various sales channels. Manufacturers and retailers use PIM systems in equal measure, but with very different requirements and challenges – particularly in the areas of data structure, data distribution, personalisation, data quality and system integration. In the following, we highlight these differences in order to show how versatile and flexible a PIM system must be in order to fulfil the individual needs of both sides.
Data structure and product diversity
Manufacturer
Manufacturers often have a wide variety of products and require detailed information on the individual products, such as technical specifications, materials, sizes and availability. A PIM system for manufacturers must therefore be able to manage highly complex product data structures. This involves not only managing the product information itself, but also linking supplier data, components and product variants. It must be ensured that this information remains consistent across different departments and is always up to date.
Retailer
Retailers, on the other hand, are often faced with the challenge of collecting product data from different manufacturers and then bringing it into a standardised structure. They often have to enrich and standardise the data and prepare it for different sales channels. A PIM system for retailers must therefore be particularly good at integrating data from different sources and managing it consistently and across channels. It is not so much the technical depth of individual products that is required here, but rather the ability to prepare this information in such a way that it is optimally displayed on different channels.
Data distribution and channels
Manufacturer
For manufacturers, the focus of data distribution is often on internal processes and communication with B2B customers. This includes publishing technical data for suppliers, sending catalogues to key accounts or providing marketing materials for sales partners. Manufacturers must ensure that their product information is passed on correctly and consistently to their trading partners and internal departments. A PIM system helps to avoid errors that could result from incomplete or incorrect data.
Retailer
Retailers have a much stronger focus on multichannel sales. A PIM system must help them to optimise their product data for different sales channels – whether web shops, marketplaces such as Amazon and eBay or print catalogues. Each of these channels has its own requirements for the presentation of products, and the PIM system must be flexible enough to fulfil these requirements. In addition, retailers often need to react quickly to changing product information, such as price changes, stock levels or new product variants.
Personalisation and customer orientation
Manufacturer
Manufacturers often use PIM systems to provide B2B customers with customised product information. This can vary depending on the region, sales partner or market segment. However, manufacturers also use PIM systems to support their own marketing teams – especially if they sell their products not only via distributors but also directly to end customers. Personalisation plays a central role here in order to specifically address the needs of both B2B and B2C customers.
Retailer
For retailers, personalisation is a key factor in offering end customers an optimal shopping experience. They need to ensure that product data is provided in different languages, with different currencies or for different target groups (e.g. B2B vs. B2C). A PIM system for retailers must therefore be able to offer personalised product information based on customer preferences. Especially in e-commerce environments, this is crucial to increase sales.
Data quality and automation
Manufacturer
Data quality is a top priority for manufacturers. They need to ensure that product information is complete, accurate and consistent. A PIM system helps manufacturers to carry out quality checks and ensure that only validated data is published. Manufacturers can also use PIM systems to set up automated processes for updating product information, which significantly reduces the effort required for data maintenance.
Retailer
Retailers rely heavily on automation to efficiently manage large amounts of product information. A PIM system for retailers makes it possible to carry out automated updates of price lists, stock levels or product variants across all sales channels. This allows retailers to react quickly to market changes and continuously optimise their product ranges.
Functional extensions and integration
Manufacturer
Manufacturers often require specific functional extensions to manage complex technical data structures or to map special product configurations. A PIM system must be able to connect to ERP systems or CAD systems in order to seamlessly integrate and manage technical data. It must also be able to feed systems such as online shops or marketplaces with the right product information for direct sales.
Retailer
Retailers, on the other hand, generally require seamless integration into e-commerce platforms or marketplaces. PIM systems must offer flexible interfaces in order to integrate data from different sources and automatically transfer it to the respective sales channels. The aim here is to increase efficiency and ensure that product information is always up-to-date and complete as it is transferred to specific channels.
What should manufacturers and retailers look out for when selecting a PIM system?
Choosing a suitable product information management (PIM) system is crucial for manufacturers and retailers to efficiently manage their product data and distribute it across different channels. While manufacturers often have to manage complex product structures and technical data, retailers face the challenge of consolidating product information from different sources and optimising it across multiple sales channels. Nevertheless, the following PIM functions are relevant for both groups:
1. Integration with existing systems
A PIM system must be integrated because it ensures that product information can flow seamlessly between different systems and departments within a company. When selecting a PIM system, both manufacturers and retailers should therefore ensure that it can be integrated into their existing systems, depending on which interfaces are relevant (e.g. ERP, PLM, CRM, CMS or shop systems as well as e-commerce platforms).
2. Multichannel and omnichannel capability
For retailers, the ability of the PIM system to manage product data across different sales channels is crucial. The PIM system should be able to adapt and optimise the data for webshops, marketplaces, catalogues and POS systems. But manufacturers that handle both B2B and B2C sales should also make sure that their PIM system can work across channels in order to reach their target groups in different markets.
3. Scalability and flexibility
A PIM system should be scalable for both manufacturers and retailers to support business growth. For manufacturers, this means the ability to manage more and more product data and introduce new product lines without compromising system performance. Retailers, on the other hand, need a PIM system that can flexibly handle the growing number of sales channels and changing market requirements.
4. Automation and increased efficiency
A powerful PIM system should offer automation functions to automate repetitive tasks such as product data updates, price changes or the management of product variants. Manufacturers can thus organise their internal processes more efficiently, while retailers can react more quickly to market changes and coordinate new product launches across multiple channels.
5. Legal requirements and compliance
It is important for both sides that the PIM system takes legal requirements and compliance specifications into account when managing product data. Manufacturers should ensure that the PIM system can store and manage data on product safety regulations and labelling. Retailers must ensure that the product information complies with the legal requirements in the respective markets, including data protection and consumer regulations.
Conclusion: Different requirements, but the same benefits
Manufacturers and retailers face different challenges when it comes to using a PIM system. For manufacturers, it’s all about managing highly complex and detailed product data, while retailers face the challenge of standardising data from different sources and presenting it consistently across numerous sales channels. Despite these differences, the common benefits of a PIM system lie in ensuring data quality, automating processes and increasing efficiency in data management – a decisive competitive advantage for both sides.
A well-implemented PIM system can therefore make the decisive difference for both sides when it comes to optimising the flow of product data, strengthening customer loyalty and ultimately increasing sales. Just like our OMN PIM. Discover the power of our OMN PIM in a non-binding online demo. Make an appointment now and see for yourself: Click here and request an Online Demo >>
Do you know our PIM System OMN?
CONTACT US WITHOUT OBLIGATION AND LET US
CONVINCE YOU CONVINCED BY OUR OMN PIM.