What is a PIM system and why is it needed in a company?

PIM systems are used to store product data in a centralized manner. This keeps large amounts of product information up to date and tracks the entire product life cycle, and the importance of PIM is undisputed. Nowadays, companies cannot do without this system. The success of the company depends on efficient data management. Since they are stored and updated in a centralized system, all departments of your company work with the same data. In our article, we explain the term in more detail, define the role of the solution in e-commerce and describe how a PIM system works. We also compare ERP, DAM and PIM systems and identify the differences between them.

What does PIM mean?

The abbreviation PIM stands for Product Information Management. This is software for organizing and providing information about products that are used at different locations and in multiple sales channels.

Detailed explanation of terms

PIM is not just about managing product data. It also includes the collection, preparation and provision of information about products for various output channels and media. The information includes technical specifications, item properties, logistics information and marketing assets (descriptions, images, videos). The PIM system improves the efficiency and effectiveness of product data management. According to Research Nester, the market size for product information management would reach more than USD 51.83 billion by 2037. Thus, the annual growth will be over 11.5% from 2025 to 2037.

What is the difference between PIM, ERP and DAM?

The boundaries between PIM, ERP and DAM solutions are often blurred because they enable centralized content management. However, this software is used for a different purpose and fulfills different functions: the management and maintenance of all information about products is the main task of PIM systems. It is seen as a database with which the product data is standardized and validated. That is why the importance of a PIM system is so crucial.digital asset management (DAM) system stores, organizes and manages the digital content (images, videos, documents). These files are stored in a structured manner and are easy to find thanks to a powerful search function.information from different company departments can be managed with the help of an ERP system. This means that different business processes (accounting, human resources, sales, production, warehouse management) can be integrated into a single system.

What data is managed with a PIM system?

As it involves the management of product-related information, PIM is of great importance for the success of a company. A distinction is made between 7 types of data:

Core product data

It is about the most important, basic information that is considered a clear identification and description of the product. This includes the core product ID number, the article number (SKU).

Price

This information can either be retrieved from the ERP system and integrated or managed in the PIM. In the latter case, it is also possible to create personalized, customer-specific offers. The importance of PIM is therefore even greater.

Sales and marketing details of the product

This includes the name and descriptions. The product should contain comprehensive characteristics. This information should be precise, clear and complete. It is important to provide all details in coordination with the SEO strategy. This will increase the number of potential customers who find the offered product via search queries.

Technical specifications

These are the product descriptions that influence the buyer's decision. This is information regarding size, weight, ingredients, compatibility and much more. If the customer is familiar with this, the choice is easier.

Digital Assets

With the help of PIM, digital resources (images, videos, PDFs, manuals) are integrated into product information, allowing customers to get to know the item better.

Related products

The PIM system helps to structure the variations and product families. Related articles can be used for recommendations and personalization.

Channels and feeds

By using a PIM system, product information can be stored anywhere and presented from anywhere. PIM enables the connection with sales and marketing channels. You can also create customized feeds for transferring product information to different channels and any format. PIM is very important for the management and organization of these channels and feeds. Workflows and data rules can be adapted to the specific requirements of different channels.

For whom is the use of PIM systems relevant?

If the company has an extensive product range, the software needs to be introduced. The same happens if the products or services are presented on several sales channels or at international level in different languages. The size of the company is irrelevant here. Not only large corporations, but also small and medium-sized companies need PIM to effectively design and improve the product experience of customers and to automate many processes.

Company with a wide range of products

If the company offers a variety of products or services, it takes a lot of time to manually maintain and update data. Since they are stored in one place, new products only need to be entered or changes made once. Employees then see the same information in different places. Data can be adapted for different markets, corrected and translated into several languages.

E-commerce and retail industry

In online retail, a PIM system acts like a central database where product-related information is stored and distributed across many channels. The PIM system enables translation into different languages and the conversion of currencies and measurements. In contrast to management via spreadsheets, attributes, specifications and marketing content can be managed uniformly using the PIM system. By using a PIM system, customers have access to detailed, up-to-date information. They can make purchases both online and in the brick-and-mortar store. The most important thing is to find out about the availability of an item.

Manufacturer and wholesaler

Manufacturers cannot do without a PIM system, because accurate, reliable product data is very important for customers. This increases customer confidence and boosts sales. PIM systems provide consistent product descriptions across all channels, which improves the overall experience. PIM is very important for wholesalers. The sales and marketing departments access the same, consistent product information. This contributes to the rapid development of new markets.

Overview of the main functions of a PIM system

The PIM system is used to process, supplement and publish product data and offers a wide range of useful functions for data management. The most important of these are

Central data management

Data from different sources can be collected, stored and distributed in a PIM system. This ensures that you always have an overview of the published texts and images. All company employees have access to the information it contains.

Multichannel-Marketing

Information about articles is reused several times and offered via different channels. Centralized processing eliminates the need for manual maintenance separately for each channel. Costs and effort are minimized. This increases the importance of PIM.

Automatic validation of data quality

Thanks to the validation function of PIM systems, the correctness of data is checked before publication. If the data does not meet the specified requirements, a notification is sent. It leads directly to the attribute that needs to be corrected. Data validation is carried out for different channels.

Connection to ERP, CRM, store systems

When PIM is integrated with ERP and CRM solutions as well as e-commerce platforms, product information is up-to-date and consistent everywhere. This is why PIM systems are so important for increasing efficiency and improving the customer experience. All systems are synchronized and employees receive complete, up-to-date data.

Kenner Soft - Your partner for PIM systems

Our experts can help you with the introduction of PIM systems. We analyze your company's requirements and recommend the right solution for you. This ensures that your needs are optimally met. We integrate the software into the existing system landscape and ensure that the data is managed and validated correctly. Our team carries out the data migration, trains your employees to use the software and optimizes and adapts the system to improve the consistency and efficiency of the product information. Our range of services also includes the connection of PIM to other systems (ERP, CRM) and e-commerce platforms, the development of extensions.