What is a PIM system?
PIM stands for Product Information Management system and is a centralized system support for managing large or complex product registers.
Companies that market and sell their products in many different channels, such as on websites, in stores, and over the phone, quickly need a centralized source of so-called master data for their product register. A PIM system manages all information about the products offered, and via integrations and user interfaces, this information is made available to other systems such as e-commerce, product catalogs, or customer service interfaces.
A PIM system, therefore, often has a number of integrations where data about products is automatically retrieved, such as current price lists and stock balances. The PIM system provides the ability to add, edit, and remove product information, and in turn, a number of other services use data provided from the PIM system to always be able to expose correct and current information.
The management of product data is similar to the management of many other types of register data, and it is not always physical products that are managed in a PIM but can just as easily be offers, services, or packaged solutions.
5 common functions in a PIM system
PIM systems can be very stripped down and in principle correspond to an Excel file with master data about products. In larger organizations, they can also be large and complex systems that manage advanced processes such as proofreading flows, real-time data, and document management together with hundreds of integrations to other systems.
1. Making product data available
The most important role for a PIM system is to be able to provide updated and correct information about products in user interfaces or via integrations to other systems.
2. Add, edit, and remove product data
In most PIM systems, it is possible to work with the product data directly in the system, and this is then a central part of the system's function and value.
3. Work with categorization and product attributes
A PIM system often manages attributes on products (such as color, size, and material) and more or less complex categorization. In more complex products, attributes can also consist of service levels linked to other products or the number of available rooms and distance to the beach if the product is a hotel, for example.
For manufacturing companies, it can be about very detailed technical data, and for a food company, ingredient lists and quality certifications.
4. Language management
Offering product information in many languages, managing translation processes, and many users who then need to work in parallel in the system are often components in a PIM system where language versions of information can both be managed and stored.
5. Import and export of product data
In managing large item registers, the need arises to be able to work with large amounts of information in bulk. Powerful import and export functions are therefore common recurring functions in a PIM system.
The benefits of a PIM system
The greatest value in a dedicated PIM system lies in time savings from manual processes together with current and correct information in all of the company's channels. Outdated or incorrect information can in many cases drive both large costs and unnecessary additional work.
A good PIM system makes it easy to get an overview of your product portfolio, to work with many or complex products in parallel, and integrates well with surrounding systems to ensure current data and that all systems 'downstream' are continuously fed with correct information.
Which companies use PIM systems?
PIM systems are used by companies of all sizes and industries. Depending on the company and industry, however, the complexity of the systems can differ greatly.
E-commerce companies that often handle very large product ranges almost always use a solution for PIM, either as a separate system support or as an integrated part of their e-commerce solution. Retail companies with large product ranges have similar needs.
Manufacturing companies can use PIM solutions for managing product information to wholesalers or retailers. Product companies need to distribute correct information to their retailers, often the recipient there is another PIM system that adds prices and other things to then expose the information in a store or on a website, for example.
As seen above, PIM systems are used by a variety of different types of companies with the common denominator that they need to manage more or less complex product information for often many different products.
Alternatives to a PIM system
For smaller or younger companies, it is common for product data to be managed in spreadsheet programs such as Excel or Google Sheets. The threshold for this type of solution to no longer cover the needs (such as in multilingual management or dynamic data from other systems) is quite low.
The most common is then that a system that manages product information gets to act as PIM even if it may not be the system's main task. This is very common among, for example, smaller e-tailers who use their e-commerce engine or companies with less complex products where the CRM system can contain product registers or similar.
The transition to a dedicated PIM system often occurs as a consequence of a more complex product range or that more people will work in it in parallel. This step occurs earlier if the product catalog is a central part of the business but can occur late even in very large organizations if the product catalog only refers to a limited part of the business or a smaller niche area.
Calculate ROI for a PIM system
In the introduction of a PIM system, regardless of whether it is an upgrade from an existing solution or a first PIM that is introduced in the business, there are several things to weigh into an ROI (return on investment) calculation.
Cost savings in time through automation and faster user interfaces
Gains through shorter lead times on information such as price adjustments or stock balances
Increased customer value through more current, clearly categorized, and correct information
New future business opportunities through, for example, support for managing multiple languages, new integration paths, or managing larger product ranges
For a complete ROI analysis, starting values are naturally needed in what the organization is moving away from and what costs have been associated with this. Efficiency in work processes can often be calculated in the form of the amount of time saved and with a standard cost for working time in the organization. Other parts may need qualified hypotheses such as how sales can be affected by more current stock balances or how customer satisfaction can be affected through better access to information.
System types similar to PIM systems
Just like many other system types such as CMS or e-commerce platforms can contain PIM-like functionality and to some extent fill the role of a PIM, there are common functions in PIM systems that in some cases can be completely stand-alone systems in themselves.
A common such functionality is resource management in the form of images and documents, so-called Digital Asset Management (DAM). In the same way here, many companies switch to a dedicated solution for DAM at a certain breaking point, while for many, the functionality covered in many PIM solutions is sufficient.
A PIM system often also contains a large number of integrations that are either handled directly in the system or in other cases are handled with a dedicated integration platform (sometimes in the form of iPaas).
Standard PIM or a customized solution
There are many functional PIM solutions on the market, and the choice between using a standard solution and a customized one depends on two crucial factors.
As an effective PIM solution integrates with several other systems (both upstream and downstream), it places great demands on flexibility regarding integrations. With a customized solution like Softadmin®, integrations can be built and adapted precisely to an existing IT environment, while standard systems may have greater limitations in types of integrations or available connections.
PIM for an e-commerce that works very similarly to other e-tailers and without competitiveness in its product management can often find effective processes in a standard PIM, while a company with industry- or organization-specific needs or a desire to build competitive advantages through its product management can often benefit from a customized solution.
At Multisoft, we create customized system support with our low-code platform Softadmin® that allows us to deliver unique systems 10-15 times faster than with in-house development. We have extensive experience in customized PIM systems that deliver both a strong user experience and competitive advantages for our customers.
PIM FAQ
What is PIM?
PIM stands for Product Information Management system and is a system support for managing large or complex product registers.
PIM vs CMS
Many CMS (Content Management Systems) support various forms of product management and can function as a solution for product registers for a business for a while. As needs and product registers grow, however, the requirements and complexity increase, and a specialized system is needed.
When is it time to implement a PIM system?
The need for a PIM is often discovered by the emergence of challenges with data quality, such as incorrect prices in certain channels or differences in a product specification depending on where it is presented. It can also become apparent by the costs of managing product data increasing sharply over time in the organization and the coordination and communication costs around this increasing.
