The importance of Data Quality and effective Product Information Management
The more products and product information you have to maintain, the more complex that maintenance becomes. As a result, the quality of that product information is likely to be subpar. This is where using specialized software such as a PIM or Product Information Management system can help.
An increasing demand for more product data
For startups or small businesses, it is often sufficient to manage product information in spreadsheets such as MS Excel. But as companies grow and their product range expands exponentially, such solutions are no longer sufficient. Product managers struggle to keep thousands of products up to date in spreadsheets, which brings issues in the long run.
Not only is the product range growing, but also the demand for data: more and more data is expected for each product. Once it was sufficient to know a unique number, description, and price for each product; and then we could trade. Surely this can still be done, but there is an increasing demand for more data to make informed choices.
Examples of this include:
- Logistics information needs to be captured to give the WMS the right information
- Purchasing data is needed to choose the best supplier for the product
- Classifications are needed to record the right characteristics of a product (type)
- Channel-specific (POS, brochure, web shop, etc.) texts help to address the target audience specifically
- Sustainability is also becoming increasingly important for end consumers, so that information needs to be also managed
The severe impact of incorrect or incomplete product information
Incomplete or, often worse, incorrect product information leads to a range of potential problems and therefore extra costs for your business. Perhaps these examples are familiar to you, or you have had other experiences with poor product information:
- Warehouses have problems determining storage locations if dimensions are not accurately provided
- Incorrect information on your web shop results in customers not receiving what they want and returning their purchases
- Duplicate product numbers confuse reporting because there is no clarity about which products are being referred to
- Incorrect accessories or accompanying products with a product cause it not to fit properly
The more products, and therefore product information, you have to maintain, the more complex that maintenance becomes. As a result, the quality of that product information is likely to be subpar.
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The importance of Data Quality for effective Product Information Management
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Tackling the increasing demand for product data
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The severe impact of incorrect or incomplete product information
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How to efficiently manage product data
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Key benefits of investing in data quality
What is a good way to manage all this product data?
Using specialized software such as a PIM or Product Information Management system can help your company with this. With a good PIM solution, you can easily manage large quantities of products, even in the millions.
Advanced search functionality makes it easy for your users to find the right products. With automated processes, or workflows, everyone knows what is expected of them and by when. User screens are configured to enable them to work as efficiently as possible. Product managers can focus on their own set of products, and different departments can collaborate on the same products without hindrance.
If your organization has difficulty managing, adding, and redistributing large amounts of product information, a PIM system is the solution you need.
The benefits of investing in data quality
Poor data quality can have far-reaching consequences on your revenue and profits. That’s why investing in data quality of product information is beneficial for every organization. If your data quality is subpar, small adjustments and automated checks can often yield significant improvements. If your data quality is already good, specialized checks can take the integrity, timeliness, and accuracy of your product information to the next level.
By combining automated quality controls and visualization of the results, a good PIM (Product Information Management) system can make your product information easier to manage and prioritize maintenance for the right products. It is not logical, for example, to give more attention to products with low turnover and/or margins than to more profitable products.
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