05.11.21

Why PIM Can't Be Replaced by ERP, CRM, and MDM

A core element of any marketing and sales e-commerce strategy is high-quality product information. Some companies manage information about the product in other systems, for example, ERP or corporate accounting systems.

We insist that PIM, ERP, MDM, and CRM have different business purposes. Although they can work together as a comprehensive IT structure to ensure product information is accurate.

Let's go over the features of each platform and the benefits of using PIM for managing product information.
PIM vs. ERP: Product Management or Company Management
ERP (Enterprise Resource Planning) is a system for managing a company's daily activities. It supports many functions such as accounting, purchasing, sales, project and risk management, customer service, product manufacturing, and more. The system works to improve business intelligence and reduce operational costs. The ERP platform optimizes reporting, predicts effective demand, and monitors supply chains. It has product information management features, but still, PIM greatly expands your catalog capabilities.

PIM (Product Information Management) store information about products, allowing you to manage, transfer and expand information on the most popular marketplaces in the world. PIM collects data in one place: sales proposals, photos, content. The system acts as a single reference center for managing and structuring product catalogs.

For example, the ERP platform does not provide customized functionality for suppliers or manufacturers. Your partners cannot upload products or manage content. Modern PIM has the functionality of a personal account for a merchant with functions for importing files in various formats. The supplier manages the products and also interacts with the partner's content manager via chat.
PIM vs. CRM: Product Management or Customer Management
CRM (Customer Relationship Management) is a system for recording, reporting, and analyzing relationships between a company and customers. CRM platforms store clients' contact information: phone number, email address, social media links. The system structures the data by customer cards, providing complete information. Companies are forging new relationships, retaining loyal customers, and tracking good customer relationships with CRM.

CRM software helps you to increase sales by maintaining good customer relationships. The system records and tracks every interaction with potential or existing customers. It analyzes conversation, objection handling, and rejection rates that can help improve product sales strategies. Companies receive complete information about the product - purchase history, orders, returns, prices.

CRM manages clients' information but not product information. PIM involves publishing a product on different platforms to offer customers. PIM and CRM are essential for e-commerce, but they are entirely different, although they both work for sales increase. For instance, PIM helps analyze the sales chain from viewing an item to purchasing it.
PIM vs. MDM: Manage Products or Manage All Data
MDM (Master Data Management) is a system for managing business data in various fields. It organizes information about employees, finances, customers, distributors, and wholesalers. The MDM product enhances reporting, analytics, and forecasting for supply chain tracking and other business areas.

MDM is the hub for all analytic and transactional data in an enterprise. The system updates and synchronizes corporate information to complete workflows. Data management is a crucial element of MDM. It manages data definitions, access rights, policy, and implementation procedures.

The MDM system is being implemented in large companies with massive sales networks targeting several markets and countries. MDM requires significant investment and technical expertise to use. The PIM platform is much easier to manage and can be applied by any company and team. The system adapts to the processes of enterprises and is quickly configured before starting work.

PIM (Product Information Management) is a platform for managing product information. The system consolidates product data and turns it into accurate datasets. Then PIM transfers this information into sales and marketing channels. PIM also eases the work of employees by streamlining critical business processes.
Let's summarize:
ERP
ERP works as a central repository for supply chain data and technical information about a product, such as code, manufacturer, price, composition.
MDM
MDM standardizes data regarding production, customers, warehouses, distributors, sellers. The system is not focused on structuring and updating product information.
CRM
CRM collects customer data as well as product-specific information. For example, the number of goods
PIM
PIM offers advanced capabilities for managing and communicating product information to websites, marketplaces, and partners' online stores.

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