Challenges of the tool industry in managing product information


Skontaktuj się z nami

Introduction

In the tool industry, product information management is an essential element of effective sales. Faced with increasing competition and a dynamic market, tool companies encounter challenges related to organizing, automating, and distributing product data. These aspects were the primary focus of our discussions during the recent Tools and Hardware Show, in which we participated.

In this article, we will summarize the key challenges faced by tool and equipment manufacturers and discuss how a Product Information Management (PIM) system can help overcome them. We will delve into the first of these challenges and explain how a PIM system can support the operational efficiency of companies in this industry.

Key challenges in Product Information Management highlighted in conversations with industry leaders

In discussions with leaders in the tool industry, we identified several major challenges impacting sales efficiency and workflow organization in companies:

  • Dependence on external partners for product data management – this adds extra costs and limits company flexibility.
  • Manual entry of products on marketplaces – this task consumes resources, is time-intensive, and prone to errors.
  • Difficulty in consolidating products from various suppliers into a single offering – manually merging product data is inefficient.
  • Managing large product databases – when systems hold hundreds of thousands of products, traditional management becomes ineffective.

Szukasz dostawcy rozwiązań PIM? 

Mamy wieloletnie doświadczenie we wdrażaniu systemów PIM dla topowych firm w swoich branżach. Naszymi klientami są m.in: Rossmann, VOX Capital Group, Ceramika Paradyż, Polbruk S.A.

Free consultation

Martin Broda

[email protected] 

+48 723 395 567

Dependence on external partners for Product Data Management

Many tool companies continue to rely on external partners to manage their product data, leading to numerous challenges.

Firstly, outsourcing product data services incurs additional costs that can increase significantly as the product range expands. Managing specifications, descriptions, and visual materials requires regular updates, and the external fees for these services often become a financial burden.

Another issue is the lack of flexibility and control over the data. Any change in descriptions, prices, or specifications requires contact with the external partner, which lengthens the update process and reduces the company’s ability to respond quickly to market changes. In the tool industry, where rapid product launches or modifications are crucial, such delays can mean a loss of competitiveness.

However, implementing a Product Information Management (PIM) system also presents new challenges. Companies must first go through a data migration process, which requires adequate preparation. Migrating data from various sources—often disparate systems—can be time-consuming and requires thoughtful management. Additionally, the company needs a team with the right technical skills or external support, which entails further costs and the need for employee training.

How does a PIM system support independence and control over product data?

PIM (Product Information Management) systems provide a solution that enables companies to maintain complete control over their product data. By implementing a PIM system, companies can centralize all product information in one place and manage updates independently. This eliminates dependency on external service providers and allows for rapid responses to changes. This increases the company’s flexibility and enables it to better adapt its offerings to market demands.

PIM also facilitates easy integration with other systems, which speeds up the flow of information across various departments and sales channels. For example, when a company updates a product specification in the PIM, this change is instantly reflected across all connected channels—from the website, through marketplaces, to B2B platforms. This approach removes the need for manual updates and accelerates business processes.

Implementing a PIM system is not always a ‘pleasant walk’. What can be done to get through it without major problems and disappointments? 

In product companies, product information management plays a key role, influencing operational efficiency and customer service quality. The implementation of a PIM (Product Information Management) system is increasingly popular in such companies, as it allows the centralisation and automation of product data management. However, the PIM implementation process brings with it a number of challenges. In this article, we take a look at the most common difficulties companies may encounter when implementing PIM, and discuss how to effectively counteract them to achieve the full benefits of the solution.

Challenge 1: Integration of PIM with Existing IT Systems

Product-based companies often have complex IT systems like ERP, CMS, CRM, or e-commerce platforms. Implementing a Product Information Management (PIM) system requires integration with these tools, posing technical and organizational challenges. Integrating PIM with existing systems is often complex due to differences in data structures and the industry-specific needs that may require custom solutions.

Solution:

Every PIM implementation process should start with a thorough audit of the IT infrastructure and identification of potential integration challenges. Choosing PIM solutions with flexible APIs that facilitate integration with other systems, along with ready-made integration modules, can be beneficial. In complex cases, hiring technical experts is essential for designing a robust integration that prevents future issues and costs.


Challenge 2: Migration and Quality of Product Data

Migrating existing product data to the new PIM system is challenging as data often comes from various sources like spreadsheets, ERP systems, or old databases. This information may be incomplete, inconsistent, or outdated, complicating the migration process and risking errors after deployment.

Solution:

Before migration, conduct a detailed data quality analysis, eliminating outdated and duplicate information. Tools for automatic error detection and correction are helpful. Migration should not be a one-time process but an ongoing practice. Regular data quality monitoring in PIM is necessary to maintain consistent and reliable product information.


Challenge 3: Operational Process Changes and Team Engagement

Implementing PIM often requires changing operational processes and team training. Introducing a new system may face resistance, especially if employees are accustomed to previous tools or manual processes. Without full team engagement and appropriate support, the PIM system may not be effectively utilized.

Solution:

Involve employees from the start to avoid resistance and ensure effective PIM implementation. Provide training and technical support so users feel confident in the new environment. Designate PIM “ambassadors” to promote a positive view of the implementation, emphasizing its benefits.


Challenge 4: Configuring PIM to Industry Specifics and Company Needs

The PIM system should be tailored to the specific needs of the company and its industry to support product information management effectively. Configuring PIM requires time and analysis; inadequate customization may lead to unmet expectations in areas like managing technical descriptions, product classifications, or industry-specific attributes.

Solution:

Customizing the PIM system to the company’s needs is essential. Planning the data structure and product hierarchy is a worthwhile investment that supports efficient operation. Collaboration with an experienced implementation partner can help avoid pitfalls from inaccurate configuration.


Challenge 5: Maintenance and Development of the PIM System

Implementing a PIM system is just the beginning; it also requires ongoing maintenance and regular updates to keep up with product range changes, technology, and market demands. Without this, the system can quickly become outdated or challenging to manage.

Solution:

To ensure continuous development and relevance, designate a dedicated PIM management team responsible for data quality, updates, and adapting the system to new requirements. Even a single person may suffice, depending on the product database size and complexity. Appointing a position with the right competencies is essential. A dedicated unit, like a product department, should manage quality and currency of product data. Regular training for users and a long-term PIM strategy will help keep the system flexible and ready for change.

Looking for a PIM solution provider? 

We have many years of experience in implementing PIM systems for top companies in their respective industries. Our clients include: Rossmann, VOX Capital Group, Ceramika Paradyż, Polbruk S.A.

Free consultation

Martin Broda

[email protected] 

+48 723 395 567

Automation and flexibility - the key to efficiency

The PIM system also offers companies the ability to automate many of the processes involved in managing product data. Instead of manually submitting updates to partners, companies can set up automated processes that synchronise data independently across all customer touchpoints. Properly integrating PIM with marketing tools and sales channels makes it easier for companies to maintain information consistency at every customer touchpoint.

It is also worth mentioning the possibility of personalising data, which becomes much easier with PIM. Companies can better tailor product descriptions, specifications and images to different markets or even selected customer groups, which can bring significant benefits in terms of sales conversion.

Why implement a PIM system?

The PIM system is a key tool for eliminating product information management challenges.

Through centralisation, automation and full control over data, a PIM system allows tool companies to become independent of external service providers, more efficient and more responsive to market needs. In this age of digitalisation and dynamic change, PIM solutions are becoming not only helpful, but even essential to ensure competitiveness and optimise internal processes.

For companies facing the challenges described above, implementing a PIM system is a step that can significantly improve product data management and thus contribute to increased operational efficiency and higher sales results.

Benefits of implementing a PIM system

Reducing costs

Reducing the cost of managing content - product information, whether technical data, marketing material or documents such as manuals, technical data.

Reducing returns, improving consistency of communication

Consistency of communication across all channels and platforms - websites, online shops, B2B sales platforms, blogs, mobile apps, social media, emails, newsletters, videos, e-publishing.

A consistent product base - a single source of truth

Consolidation of data that was previously scattered in different locations.

Introduction of long-tail sales 

Manage product content across all channels and platforms from a single dashboard.

Increase in sales and conversions

Increased sales - with extensive, comprehensive product information, customers are more likely to make purchasing decisions. At the same time, the amount of unique, professional content has a very positive effect on SEO, resulting in increased organic traffic to websites and online shops.

Check out our projects

Product information management system for Ventia

An effective product database management platform for a leading HVAC distributor

Customer: Ventia

Implementation of a comprehensive data management solution for the furniture industry

Introduction of the Pimcore system for the interior brand VOX

Customer: VOX

Online assistant increases B2B leads

The concept, design, and implementation of B2B lead generation tools for the manufacturer of the Heatpex Aria ventilation and recuperation system.

Customer: Heatpex

A modern communication channel on the Internet for Asilo.pl

New quality in product catalog communication and optimization of customer and brand experience.

Customer: Asilo

Looking for solutions for your business?

We are experienced experts and consultants in the digital transformation of the areas of data management, sales and AI solutions for PIM systems.

Contact person

Martin Broda

[email protected] 

+48 723 395 567

Nieprawidłowe dane
Nieprawidłowe dane
Nieprawidłowe dane
Nieprawidłowe dane
Nieprawidłowe dane