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January 3, 2023

What's the difference between PIM and ERP?

What's the difference between PIM and ERP?

Product Information Management (PIM) and Enterprise Resource Planning (ERP) are systems that assist businesses in organizing and managing their data and processes. Given that, by definition, both systems are used to manage and streamline data and internal workflows, it is often confusing to understand the differences and the usefulness of both systems for a business. Here are some key differences between PIM and ERP.

Product Information Management

PIM systems are specifically designed to manage product-related data, such as:

  • Descriptions
  • Images & digital assets
  • Specifications
  • Attributes

They help businesses centralize and streamline their product information, making it easier to share with different teams, partners and sales channels. PIM systems also help businesses improve their product content, making it more accurate, up-to-date and consistent across webshops, marketplaces and other channels.

Enterprise Resource Planning

ERP systems, on the other hand, are designed to manage and integrate all the different business processes and functions across an organization. This includes areas such as:

  • Finance
  • HR
  • Manufacturing
  • Supply chain
  • Customer service

ERP systems provide a single, unified platform for managing all of these processes, helping businesses streamline their operations and make better-informed decisions.

Therefore, PIM systems focus on managing product-related data, while ERP systems focus on managing and integrating all business processes. Whether a business should use both a PIM system and an ERP depends on the specific needs and goals of the organization. A PIM system may be suitable for businesses with a large number of products that need to manage complex product information for different sales channels. Meanwhile, an ERP system may be a better choice for organizations that require a more comprehensive business management system. Another option is to integrate PIM and ERP tools, to get the most out of both systems and take the business to the next level.

Benefits of integrating PIM and ERP

Integrating a Product Information Management (PIM) system with an Enterprise Resource Planning (ERP) system can bring several benefits to an organization.

Centralization

The integration allows for a single source of truth for product information, meaning that all departments within an organization have always access to correct and up-to-date information about a product from the PIM system. This can help to ensure that all teams are working with the same set of data, which helps to reduce manual errors and improve efficiency.

Efficiency

Integrating PIM with ERP can help to streamline processes and workflows. For example, if a change is made to a product in the PIM system, it can automatically be reflected in the ERP system or vice versa, eliminating the need for manual or double data entry. This way of working helps save time and reduce the risk of errors.

Validation

integrating PIM with ERP can also help to improve data quality. The PIM system can be used to validate and standardize product information, ensuring that the data in the ERP system (and the sales channels) is accurate at all times. This can help to reduce errors and improve efficiency within the organization.

Improved customer experience

By integrating ERP and PIM, the product information in all sales channels will be consistent, complete, and up-to-date, including correct pricing and updated stock levels. This will provide customers with a better shopping experience, as it will reduce returns and complaints. 

Integrating PIM and ERP can help to improve the efficiency and accuracy of an organization's product information management processes, while at the same time increasing customer loyalty and satisfaction, and enhancing the team’s productivity. A real boost for a business’s sales and growth. If you want to know more about the benefits or simply understand if you might need such an integration, book a demo with KatanaPIM today and have a chat with one of our experts!

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What's the difference between PIM and ERP?

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