
Comparison: PXM vs. PIM vs. DAM
How do the disciplines PXM, PIM and DAM differ? We demonstrate the differences between the various data management systems and show how they relate to each other and for which business models they are most suitable.
For product managers, data-related tasks in inventory management are a very time-consuming challenge. If the processing of this data is done manually and across multiple channels, it means an enormous amount of time is spent, which can result in enormously high costs. In fact, inventory is one of the most important parts of any supply chain, because it turns into revenue after the sales process.
„A McKinsey study reports that, on average, companies lose 33% of after-tax profit when they ship products six months late, as compared with losses of 3.5% when they overspend 50% on product development.“
Source: Harvard Business Review, „Tracking Product Teams”
In today’s business environment, customers’ demands and requirements are constantly changing. If brand managers want to remain competitive in the future, they should be able to react quickly to these changes. Two aspects are central to this: on the one hand, optimized product listings. Products must be strategically placed in such a way that organic sales increase and, at the same time, costs for advertising decrease. On the other hand, the focus is on efficient inventory management. After all, if these inventories stop moving, they can end up as “dead stock”, which is associated with high costs. The effects of the Corona pandemic in particular have made this aspect even more important:
„In a 2020 survey, roughly one-fifth of respondents on behalf of businesses revealed that they plan to have more inventory in the aftermath of the coronavirus (COVID-19) pandemic. During that survey, some 27 percent of surveyed people stated that they will keep inventory levels the same but make adjustments to the supply chain network.“
Source: Statista, „Inventory Approaches after COVID19“
One of the main reasons for poor data quality in companies is that they are often unable to maintain the correct flow of inventory. Companies that use Excel spreadsheets and record inventory manually often have high sources of errors in data management. These include, for example, incomplete and outdated information, duplicates, and double data maintenance due to data silos. Without a functioning and solid product information management software, it is therefore nearly impossible to keep track of supply chains, warehouses, manufacturers, etc. in a long-term and comprehensive manner. These conditions often lead to a loss of control over the development of the inventory. Especially for small and medium-sized companies, it can become difficult to efficiently manage an ever-growing amount of product information and to create new records for each individual sales channel. This is where Product Information Management (PIM) comes in as an ideal solution to manage and place products on the market faster and easier.
„According to a survey, digital shoppers expect an average of about six images and three videos when looking at a product on Amazon or another retailer.“
Source: Salsify, „Product Experience Management Survey“
Each individual sales and marketing channel has different requirements for the format of images and other visual assets. The simultaneous output of such customized data in multi-channel sales is usually ensured by an integrated DAM system. It avoids media breaks and ensures consistent brand communication across the entire customer journey.
„Nearly 70% of workers say the biggest opportunity of automation lies in reducing time wasted on repetitive work.“
Source: Smarthsheet, „How much time are you wasting on manual, repetitive tasks?“
Multi-channel commerce faces important tasks, because poor data quality and correspondingly chaotic inventory management sooner or later develop into a major problem for most companies. In their search for a solution, they often end up with ERP or inventory management systems that cannot cope with the scale of the problems on their own. To efficiently provide high-quality product data and avoid patchy data silos, companies should consider PIM software. Because it integrates seamlessly with existing IT infrastructure and can cover every aspect of the supply chain, manufacturing, distribution, sourcing, and warehousing of products, as well as customer shipping processes.
If you’d like to learn more about how PIM can help you boost your data and inventory management, complement ERP systems, and optimize product listings, feel free to schedule a no-obligation online demo with our experts.
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