Why your business needs a PIM to complement your ERP

Welcome back to the future of B2B digital commerce. 👋

Today we will dive into the topic of PIM (Product Information Management) and ERP (Enterprise Resource Planning) systems. Do you wonder if your business needs both or if an ERP alone is sufficient?

To find answers to these questions, we have invited Kenneth Lyngshede, a B2B commerce expert, to share his insights. Join us as we explore the details of digital commerce and understand why integrating a PIM is crucial to complement your ERP.

Hi Kenneth, firstly, tell us a little bit about yourself.

I am responsible for strategic partnerships here at Litium such as our close relationships with the most important ERP companies in our existing and new markets. For more than 15 years I have worked with digitization of communication, collaborations, and business. I am particularly interested (kind of a proud nerd) in how we can help B2B companies to safely make smart investments in this area that contributes to developing their business.

Why do you think effective management of product information is crucial for B2B companies in today's digital commerce landscape?

In today's digital commerce landscape, B2B companies are faced with the challenge of meeting the increasing demands of customers who expect accurate, detailed, and up-to-date product information across various digital channels. This includes not only traditional e-commerce platforms but also client portals, marketplaces, purchasing portals, resellers websites, social media channels, and more. Effective management of product information ensures that companies can deliver a seamless and engaging customer experience no matter channel, which is crucial for being competitive in today’s market.

In the fierce fight against low margins, we see many B2B companies that have traditionally worked via retailers and several levels approach end customers with selected parts of their range. This places new demands on how comprehensive, detailed, and consistent the product information needs to be. A PIM can then be an effective work tool to live up to these new needs

What are the primary differences between an ERP system and a PIM system in terms of managing product data?

An ERP system is designed to manage various business processes, including inventory, finances, and basic product data. While it serves as a backbone for many companies, its focus is not specifically on product information management. On the other hand, a PIM system is specialized in handling product data. It excels in organizing, enriching, and distributing product information, ensuring that it is correct, up-to-date, and easily accessible across all digital channels.

How does a PIM system contribute to improving data quality and consistency compared to an ERP system?

A PIM system allows companies to create structured and enriched product data that goes beyond what an ERP system typically offers. This includes detailed descriptions, high-quality images, and other relevant information. By centralizing and managing product data in a PIM, companies can ensure better data quality and consistency, which are essential for building trust with customers and driving sales.

Can you elaborate on how a PIM system facilitates sales across multiple channels in digital commerce?

Yes of course, in digital commerce, companies often utilize various digital channels such as their website, marketplaces, a client portal, social media platforms, and more. A PIM system streamlines the process of creating and managing product lists across these channels, minimizing the risk of errors and inconsistencies in product information. This makes sure that customers have a smooth shopping experience no matter where they shop.

It ensures that the customer receives correct and up-to-date information about our products and offers, always, globally and independent of channel. When the customer and you deepen the dialogue and relationship, the customer will recognize the product information through all phases of the collaboration.

How does the integration between PIM and ERP systems improve the overall efficiency and effectiveness in managing product information?

Combining PIM and ERP systems helps companies use the best parts of each system and share information easily. While ERP systems are great for managing many parts of the business, they might not have everything needed for managing product information online. By using PIM with ERP, companies can make sure product information matches their business needs, leading to better quality data, happier customers, and a stronger position in the market.

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That’s it for today’s newsletter, I hope you got some great insights into why PIM is crucial for companies in digital commerce and how it complements ERP systems.

If you want to get in touch with Kenneth, you find him here. See you again in two weeks with more exciting information about the future of B2B commerce.

And please reach out and let me know about topics and people you think we should interview in this series.

Cheers 👋

Malin

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🚀 Work with Litium

Whenever you're ready there's 3 ways Litium can help you:

1.        We help B2B companies scale their business and build revenue growth with our platform for digital commerce.

2.        We’re keen to build a community around B2B commerce, to share our knowledge and insights. Join our tribe and share your ideas and learnings!

3.        Crafters of commerce. We work with a B2B expert network, our ecosystem of partners and advisers have extensive knowledge and experience in digital transformation.

Reach out if you want to discuss your opportunities: [email protected] or [email protected]