PIM vs. ERP: Definition, Differences & Integration
We show you what characterizes PIM and ERP systems and how they differ.
If you own an online store, you've probably already heard of the buzzwords "PIM" and "ERP". These systems are among the most important business tools for e-commerce shops. While the PIM system manages product information and passes it on to e-commerce platforms, the ERP system takes care of the backend: the offering, inventory, shipping and support. In this article, we take a closer look at PIM and ERP systems, their functions, similarities, and differences.
PIM System: Definition
Product Information Management (PIM) refers to the collection, management, and distribution of product-related information in one central place. A PIM System therefore serves as a central hub for product information, including technical information, digital assets, and marketing content. It collects data from internal and external sources and transfers it in various file formats to web shops and e-commerce platforms.
The introduction of a PIM System assists you in:
- Collecting product information from internal and external sources
- Planning marketing content based on complete product information and specifications
- Assigning content projects to writers and other creatives
- Enriching product information with SEO-optimized descriptions, photos, and videos
- Localizing product offerings for different regions, regulations and languages
- Transmitting product lists for digital and printed catalogs as well as for E-commerce syndication platforms and publishers
What does an ERP System stand for?
Enterprise Resource Planning (ERP) refers to the integration of various business processes into a single, unified system. An ERP System allows you to collect, manage, and store information from various departments: accounting, supply chain, warehousing, production, human resources, marketing, sales and IT. This not only helps you eliminate data silos but also provides accurate information to employees at all times. In addition, an ERP system helps you automate repetitive processes and gives you a clear overview of your entire business operations.
An ERP system offers you a variety of advantages, including:
- Real-time transparency of your business operations
- Faster delivery times for manufactured products
- Improved scalability and agility
- Lower costs and less time spent on manual processes
- Seamless integration of different systems
- Accurate and consistent data across your entire company
- Increased security due to improved access controls
Most ERP systems are designed as enterprise applications and intended for use in larger operations. However, there are also ERP platforms for small businesses that are tailored to various industries.
Recommended ERP-Systeme
On our comparison platform OMR Reviews you can find more recommended ERP systems. We present over 300 solutions that are specially tailored to the needs of small and medium-sized companies, start-ups and large corporations. These ERP systems offer comprehensive support in all business processes. Take this opportunity to compare the various ERP solutions, drawing on authentic and verified user reviews:
PIM vs. ERP Systems: Similarities and Differences
Both PIM and ERP systems enable your company to:
- Centralize data in a single place
- Improve cross-departmental collaboration and break down silos
- Automate tasks and streamline workflows
- Reduce time spent on manual data entry
- Keep information accurate and up-to-date
However, there are a lot of fundamental differences between them:
Product Information Management (PIM) | Enterprise Resource Planning (ERP) | |
Functions | PIM systems collect, manage, store, and distribute product-related information across a platform. | ERP systems integrate multiple business modules in one place: from accounting, supply chain, and manufacturing to e-commerce and CRM. |
Scope | PIM systems allow all departments, including marketing and sales, easy access to product data. | ERP systems have a more comprehensive vision. They seamlessly integrate all departments of a company to boost operational efficiency. |
Data Management | The goal of PIM systems is to manage product-related information and create a single 'Single Source of Truth' for all business users. | In contrast, ERP systems manage company-wide data and focus on facilitating business operations. |
Costs | PIM platforms are quicker to set up and are generally also more cost-effective than ERP systems. There are even free PIM solutions for small businesses just starting out. | ERP platforms, due to their extended and comprehensive functionalities, are usually used in larger companies. They therefore represent a larger investment. |
How can PIM and ERP systems work together?
Most companies use an ERP system to manage daily business processes. It controls the supply chain, finances, operations, human resources, and other logistical processes of the business. Considering how much it accomplishes, the ERP system can be seen as the backbone of many e-commerce companies. While an ERP solution is great for internal tracking of products, it is not responsible for managing customer-related content. For this, you need a PIM system. A PIM solution provides a 'Single Source of Truth', helping teams collect, optimize, and publish product data. As the command center for product data, PIM allows your employees access to accurate and consistent product data.
If you link the two systems together, the ERP solution provides your business with master data (inventory levels and product numbers) and the structure to automate your core processes. The PIM system then receives the product information from the ERP system and enriches it by storing digital assets for each product. These are then passed on to web shops and e-commerce platforms.
What are the advantages of PIM and ERP integration?
In addition to data accuracy and reduced time spent on data entry, the integration of your PIM and ERP systems offers the following advantages:
Fast data transfer
To create a successful marketing campaign, you need all the current information about your products. To achieve this, you need data from PIM and ERP: product specifications, features, prices, content, and digital assets. By integrating these two systems, you can accelerate data transfer and quickly pass on product data to retailers and distributors.
Price accuracy
The ERP system manages product prices of all kinds, including wholesale and retail. However, pricing accuracy can leave something to be desired, as selling across different channels requires different price tags. If integrated into the ERP system, the PIM system can help with this issue. The software receives and analyzes information from the ERP system and creates a more accurate and channel-specific database for product prices.
Shorter time-to-market
The process of bringing products to market can be tedious – from product photos to copywriting and packaging design. As all parties involved are on the same page and have consistent information, delays in approval and feedback loops can be reduced. This leads to faster market entry, which in turn means more selling time and of course higher revenues.
Reduced return rate
One of the reasons for product returns is inaccurate product dimensions. As ERP solutions contain information at the stock level, product dimensions and weights are often maintained in an ERP system. In an integration, the PIM system pulls this information and passes it on to all product pages and channels that customers interact with. This process avoids manual data entry and leads to higher data accuracy and lower returns rates.
The best PIM and ERP systems
To help you with your PIM and ERP selection , below is an overview of the best solutions from each category:
The best ERP systems
Billbee
microtech büro+
DreamRobot
weclapp
SAP S/4HANA Cloud, public edition
Sage 100The best PIM systems
Akeneo
Plytix
Pimcore
eggheads
mediacockpit
Contentserv
PIM and ERP systems – a powerful combo
PIM and ERP systems are two of the most important business tools of modern companies. The PIM platform collects, manages, stores, and distributes product information from a central location. The ERP system, on the other hand, ensures that your business processes run smoothly by integrating them into one system.
Together, PIM and ERP systems make an unbeatable team. While the ERP system focuses on optimizing your backend processes, the PIM software takes the frontend by delivering accurate data and targeted content to your audience. Linking these two systems is especially important for online businesses who want to enrich their product data and automate data flow to various distribution channels and platforms.
Tim ist ein freiberuflicher Journalist / Content Writer, der OMR Reviews in den Bereichen Marketing und Softwares unterstützt. Seit seinem Onlinejournalismus-Studium schreibt er unter anderem für Computer Bild, XING und Finanzcheck.de. Wenn er nicht gerade am Texten ist, spielt er auf seiner Stratocaster die Klänge von Hendrix, Frusciante und Gilmour nach.
