If you’re a supplier in the CPG (consumer product goods) industry, you want to know about new ways to improve your business. MDM and PIM solutions should certainly be high on your list as they can both deliver big impact to your bottom line. Here’s how.
Consumer Product Goods Industry
The CPG industry is not immune to a collection of challenges. Common issues include:
- balancing price deflation with rising costs
- supply chain management
- managing local markets
- regulatory changes
- the global commercial environment
- inventory control
- unreliable overseas suppliers
Some industry changes are recent, like the growing importance of guaranteeing an ethical supply chain. Thankfully, there are technological solutions for many of these problems.
Some of the new solutions that consumer product goods companies are using include PIM and MDM. You’re probably wondering what they are, what the difference between them is, and how they can help.
Master Data Management (MDM)
Master Data Management (MDM) ensures the information you use to make operational decisions is correct and up-to-date. Why is this important? Because the back-end data of a company gets less reliable over time. Companies end up making operational decisions based on master data that is missing, incorrect, or out of date. MDM is the coat-hook you hang your data on. It’s a collection of technologies and processes. The beauty of MDM is that data is no longer duplicated or out-of-date. Data is continually pooled to one central location, checked and consolidated. With a ‘live’ understanding of what’s going on, your solutions have a better chance of succeeding. Without MDM, you’re solving problems that don’t exist. Or worse – you’re not even seeing the problems! With MDM, you can then invest extra capital in growth, instead of throwing money at problems that don’t exist.
Product Information Management (PIM)
Product Information Management (PIM) manages product information in one central place. With PIM, you can create a multi-channel marketing strategy by product. You can use PIM across multiple sales channels and can integrate them. It also has the ability to collect and manage customer data relevant to that product. You can combine videos, article descriptions, customer product reviews, and high-quality images. These promotional materials are in one place, encouraging customer purchasing. PIM is a retail business solution that allows you to get new products to market quicker. It can reduce update time from weeks to hours.
PIM Solutions Made Just for SMEs
PIM can be a big investment for SMEs. A good idea is to find a PIM focused on SME needs. PIM Lite, for example, is a pre-configured PIM system. It is an entry-level system that can:
- Eliminate the hassle of spreadsheets and duplicate data entries
- Automate product data import
- Manage catalogs, CRM, products and other digital assets
- Enable governance workflow for data maintenance
- Improve consistency and quality of data
- Send product data to trading partners in the file format they require
MDM or PIM – Which One Is Right for Me?
MDM and PIM are often spoken about together, giving the idea it is an ‘either-or’ situation. In fact, it is best to use them together. Product Information Management (PIM) is just one part of the global Master Data Management (MDM) system.
Today’s Retail Environment
Today’s retail world involves much more communication with customers than ever before. Customers have much more power to effect a product or even an entire company’s success through the impact of reviews. While before word-of-mouth was a critical marketing tool, now the review stands in its place. Most consumers report making buying decisions based on customer reviews. Few consumers will buy a product if it has a review of less than three. The retail contract is all about trust.
Questions your consumers want answered to make a sound purchase decision generally boil down to:
1. Will this product do what it says it will?
2. Will it meet my needs?
3. Is it worth the asking price?
They look to reviews by previous customers to answer these three core questions. The better the product information and positive product reviews answer their questions, the greater the chance of success for your company.
What are the Benefits of Using MDM and PIM in my Business?
Using PIM as part of your MDM system means you can reduce costs and increase growth. It means you can make quicker decisions about supply chains according to the customer response to your products. If reviews are great, you can get more of the product moving. If there are issues, you can make changes to supply chains, customer niche focus, or other tweaks, to move back to bigger profits, and quicker. In a world where retailers also demand more, PIM and MDM can help.
Retailers want personalized offers, brand messages or multichannel activities for their omnichannel consumers. They want exclusive deals to elevates their retail chain. With MDM and PIM you can drive the sort of differentiation that retailers and their customers are asking for. Whether your company offers automotive solutions, healthcare solutions, or sells groceries.
Some companies are unsure about the process of transitioning to MDM and PIM. They say they don’t like the idea of change. These are the companies that are unlikely to still be around in a few years’ time. The consumer products goods industry is facing unprecedented change. Evolving business models are not a choice, it is the only way to maintain relevance.
Beat the Competition – with MDM and PIM
If your consumer product goods business is grappling with industry change and changing demands from retailers and their customers, it’s time to change. It’s time to look at the ways MDM and PIM combine for dynamic business operations for your company. It’s time to see what supply chain efficiency looks like, to see how you can lead your industry.
Learn more about Innovit’s industry solutions today!