If you're on the lookout for an ecommerce automation tool, you've probably run into a variety of solutions. Two of the most popular options—PIM and ERP—can easily automate your core business processes.
The real question is, are they the same, or are they different? And perhaps most importantly, how do you choose the right one for your business?
The truth is that ERP and PIM systems both have a place in an ecommerce tech stack.
Let's take a look at everything you should know about PIM vs ERP (or you can hop to the section that interests you most):
The idea of ERP began as early as the 1960s when a manufacturer named J.I. Case developed a materials resource planning tool (MRP). The goal was to more easily manage product production runs by constructing a rudimentary 'automation' for procurement and delivery.
The 1980s saw the development of MRP II, which was the second, more complex iteration of the original MRP. This quickly caught the attention of non-manufacturing businesses. By the early 1990s, the 'modern' version of ERP was born.
There have been all sorts of ERP developments since the 1990s:
PIM systems also got their start in the late 90s, as they offered a level of customization that enterprise resource planning (ERP) tools couldn't provide. This quickly changed by the early 2000s when integrating PIM with ERP became trivially easy.
Today, companies can purchase a single ERP that connects with numerous information points (aka their other software with unique capabilities). This creates a seamless flow between multiple products for business management, including CRMs, customer experience platforms, and of course, product information management systems.
Although they seem similar on paper, PIM and ERP systems accomplish very different tasks.
An ERP system (or enterprise resource planning tool) is a platform that acts as a central hub for key business departments. For example, your ERP might connect your tools for financial reporting, inventory management, supply chain supervision, and other systems in your tech stack.
You can use ERP solutions to create a centralized database for your business operations - from inventory and accounting to human resources and supply chain management. This means you can use it to host data like:
A PIM system, also known as a product information management system, is specialized software specifically designed to manage and organize product information. Unlike an ERP, it only focuses on your products (and not financial, recruiting, or other arms of your business).
The product information organized in your PIM can easily be pushed to your existing sales channels. This includes:
So to recap, an ERP can handle inventory management, stock levels, product availability, and similar things. However, it's not as robust as a dedicated PIM, and doesn’t keep tabs on rich media, SKUs, or marketing materials.
That's why most people prefer to connect their PIM platform to their ERP: so they can keep all their data in the same central hub.
A PIM tool isn't the only way to manage product metadata for your business. There are a few other management systems to keep in mind:
Of course, a PIM can't take the place of these systems, so you should evaluate which modules and options make the best sense for your business.
We don’t have enough time to cover all that here, but it might be worth exploring as your business expands.
For now, let's take a step back and get a bird's eye view:
You can use a PIM solution to keep a close eye on product information. With an ERP, you can store product data and connect to the rest of your tech stack, whether it’s for your finance office or your HR department
Let’s take a closer look at all the things you can do with an ERP and PIM:
Here are some real-life use cases for an ERP system:
If you’ve got money on your mind, your ERP can help. You can connect this ‘central hub’ to all the financial tools you’re already using, including ones for:
This way, everyone with the right credentials can tap into the right folders of business information (which means nobody gets left in the dark).
Purchase orders (POs) and fulfillment tracking and returns shipping, oh my! An ERP makes life a little easier by connecting all these functions in a single ‘center square.’ They can also help you set up automations and triggers so you spend less time struggling through redundant tasks.
Keep an eye on your human resources and seamlessly funnel new folks through your recruitment process. Since everything is integrated into a consistent user interface, you don't need to worry about hunting for numbers or context.
Reporting and analytics and forecasting, oh my! It’s a lot to keep an eye on — but you’ll need all of them if you want to keep your business competitive. The good news is, an ERP can help you do this quickly. It’s easy to connect your tools into a central hub, like:
PIM systems are also incredibly effective at managing product data.
With the right PIM system by your side, you can:
No more hunting aimlessly for that product description, or searching your Dropbox folder for images. With a PM system, you can keep all things product-related in the same, accessible folder. And since it’s stored in the cloud, you can access it from anywhere.
Speaking of images and product descriptions, you can use your PIM to store important product details. Now, PIM is not DAM, but any system worth its salt should have DAM functionality.
Need to update a product image, or tweak the language in your description(s)? Just hop into your PIM and make the right edits in seconds.
It’s easy to sync product info on practically every sales platform you’re on, whether that’s Wix, Facebook, Google Shopping, or someplace in between (which might also be connected with your ERP system). This limits the amount of time you'll spend hopping between multiple tabs or managing information on your own.
With a PIM, you can easily sync updated product data across platforms so they’re always as accurate as possible. You might also have support for channel-specific content management so you can store the right descriptions, photos, and videos (just in case).
PIM is specifically designed to share information with your team. You’ll have built-in capabilities to crush and automate routine tasks with:
The right PIM software can help you create sales assets and catalogs so you can adjust critical details at the drop of a hat. For example, it’s easy to create digital ecatalogs that are perfectly curated to customer needs. You can also share your products in online brand portals with a fancy, white-label feel.
First, let's make sure we're on the same page.
Both ERP and PIM systems enable companies to manage their operations more effectively.
The difference has everything to do with their specificity. ERPs were designed to manage all core business functions. PIM systems go deep into just one function (product information management).
Here's a closer look:
To recap, the purpose of ERP is to handle business processes, so its primary uses are in finance, operations, and logistics.
This means you’re primarily juggling operational data, which includes quantities, costs, transactions, and more.
So while an ERP can track inventory and product orders, you'll need a PIM to manage higher-level tasks such as:
The purpose of PIM is to manage product content and enrich information with images or descriptions. Only select members of your team — think your folks in marketing, ecommerce, and sales — will need access to the platform to add or update marketing and technical product content.
In other words: anything non-product related is probably best for a general ERP.
This is especially true if you need to:
If you're curious to learn more, check out our guide on why enrich your ERP data with a PIM system.
A whopping 40% of global businesses don't yet have an ERP system. This, in our opinion, is a real shame—because whether you pick up a PIM or partner with ERP solutions, you can reap the benefits rather quickly.
So what are these benefits, you may ask?
Let's start with what ERP enables companies to do:
So what happens if you use a PIM for your business?
Keep your eyes peeled for a similar set of benefits:
Let’s think of your business as a kitchen for a second. In this context, ERP would be like your all-purpose food processor — it chops, blends, and does a bunch of other general tasks.
That means PIM is like your professional stand mixer with specialty attachments — it's built specifically for certain tasks and does them exceptionally well.
Depending on what you're cooking, you might need one or the other.
But the good news is that you can also have both!
With a PIM ERP integration, you can seamlessly connect to both of these solutions and then plug into the other tools you're already using.
Combining PIM and ERP is the easiest way to take your business to the next level.
That's not just opinion: it's plain ol' facts.
Just check out some examples from our ebook on PIM and ERP:
Of course, while all this looks theoretically great on paper, it's a totally different ballgame when you can see it 'real-lifed.'
So what can a PIM/ERP integration really do?
Let's dive into a real-life case study.
Safety First Aid is the UK’s largest first aid manufacturer, so as you might imagine, product information management wasn't easy. The team already had access to spreadsheets and a central ERP, but with hundreds of SKUs to manage, they needed something stronger to manage the data flow.
This led SFA to investigate Plytix, an integrated software platform offering a PIM and DAM. It's also designed to connect with your existing ERP system, which allows you to create a single database containing all the product information you need.
Within 12 months of integrating with Plytix, SFA was able to accomplish multiple goals:
An ERP system is a powerful way to automate business processes, but when you toss a PIM into the mix, it's practically effortless to automate your product data management.
Using them separately has its benefits for sure. But combining the two is where the rubber meets the road. If you’re ready to get organized, launch faster, and streamline business operations, it’s time to invest in ERP and PIM for your business.
Of course, there are thousands of different PIMs on the market, and picking the perfect option could take some time.
Curious about exploring your options?
Learn more about getting started with Plytix.