PIM vs ERP: Finding the right data framework

It’s all about data flexibility 

Need high-quality data? Both ERP and PIM can help.

Both platforms consolidate data from disparate systems into a single source of truth, eliminating silos and discrepancies. 

However, ERP and PIM differ when it comes to data structure and flexibility.

What is ERP? 

An ERP solution is like a filing cabinet.

It’s a platform you can use to access data from every distinct piece of software your business uses—software related to (to name just a few areas):

• Finance
• HR
• Supply chain management
• Marketing

In the filing cabinet metaphor, each of these distinct pieces of software is a file folder. Each file folder contains key company data: data you can access by opening the file cabinet (the ERP software). 

What is PIM? 

PIM software is a file folder in the filing cabinet of an ERP.

PIM platforms onboard, manage, and enrich product data—from product descriptions to in-depth specifications and compliance intel. Businesses can then use that data in any of their internal- or external-facing channels.

But PIM solutions aren’t just built to organize and manage product information; the most powerful platforms can also manage future data, create elastic data models to support growth functions, and serve as a single source of truth for every product on the shelves.

PIM platforms support agility and supply chain transparency in an omnichannel marketplace where product data can multiply overnight.

So how can brands, manufacturers, and retailers determine the best platform for their needs?

Features of PIM vs ERP Systems 

PIM vs. ERP: Which is best for your business?

It depends on your specific needs. Let’s explore some of the most common features of both systems and break down how they could fit into your operations. 

Features of ERP 

An ERP system encompasses a vast range of functionalities, so it can be hard to single out a specific use case. ERP systems are multi-functional—they’re compatible with tons of use cases.

On the whole, ERP platforms integrate and automate essential business processes and internal operations, including:

• Supply chain management
• Manufacturing, planning, and execution
• Inventory and warehouse management
• Procurement and supplier relations
• Order management and fulfillment
• Finance and accounting
• HR, payroll, and performance

When businesses use ERPs to their full potential, they unlock data integrity, regulatory compliance, improved efficiency, and increased transparency across core business functions—all of which can boost the bottom line.

Features of PIM software 

Whereas ERP is geared toward internal operations, a PIM solution focuses primarily on managing and enriching product data to be used on both internal and external channels. 

Among other functionalities, PIM can help businesses create and deliver powerful product narratives—stories complete with high-quality, enriched data. In a commerce landscape where consumers care about transparency more than ever, this high-quality data can be your ticket to Iengaging customer experiences. 

Advanced PIM solutions have capabilities like:  

• Product data organization and enrichment  
• Digital asset management support 
• Digital Shelf Analytics (DSA) for real-time data insights 
• Extensive integration options to connect your entire tech stack 
• Omnichannel syndication and distribution (like e-commerce, mobile, and print) 
• Multilingual content globalization and localization 

With PIM, enterprises can create and share compelling, consistent data that’s perfectly tailored to meet consumer expectations. 

ERP vs PIM: What is the difference? 

ERP and PIM both consolidate business-critical data. However, ERP primarily focuses on:

1. Updating inventory information
2. Optimizing internal operations

PIM, on the other hand, ensures enriched, accurate product information is displayed across multiple channels—from product listings to compliance documents. 

Unlike ERP, which primarily handles back-office functions, PIM platforms centralize and organize product content and data for external channels, promoting enhanced customer experiences and omnichannel consistency. 

Let’s break this down with a hypothetical:

Your fashion brand sells a t-shirt in three different sizes: small, medium, and large. In your ERP, you’ll see three different products with unique price points, SKUs, and attributes. 

But what if you want to expand and add new color options? Selling that same t-shirt in 10 different colors now means you could have as many as 90 different products in your ERP. 

A PIM system simplifies this with efficient product groupings—much like you would expect to see on digital shelves. Rather than 90 products, PIM consolidates logically; one product, 3 sizes, and 10 colors. Plus, you can make changes to every variation of that product all at once: from updating supply chain information to changing consumer-facing washing instructions. 

With PIM, you enable accurate data management from the very beginning. You get more accurate product data, a better customer experience, and more efficient internal workflows and product expansions.  

PIM + ERP: can they work together?  

While they have distinct purposes, combining ERP and PIM in your tech stack could be your ticket to efficiency.

Simply put, an ERP cannot use all the data it aggregates to its full potential. Take product data, for example. This information must be:

• Standardized
• Enriched
• Syndicated across touchpoints

By itself, an ERP can’t do that.

But, if you use ERP and PIM together, you can leverage the best of both for improved customer experiences, more seamless ops, and so much more.

Let’s explore another hypothetical:

Your multinational retail brand sells products online, in stores, and on third-party marketplaces. Your ERP  centralizes the many business functions that make this all happen: accounting, inventory, order fulfillment, and so on. However, a PIM can help you organize the data that each of these operational arms produce—specifically, data related to products.

ERP and PIM integration leverages production data to optimize future customer experiences, provide supply chain insights, and enrich the product journey. 

ERP vs PIM: what’s the right solution for you?  

The PIM vs ERP debate comes down to the needs of your individual business.  

If you’re just looking for an enterprise platform to consolidate back-office data, then ERP fills that need. But if you value data accuracy, enhanced customer experience, efficiency, and sustainable growth, then PIM fits the bill.  

Inriver: The complete PIM solution 

The days of first-gen PIM are over. Today’s high-octane PIM platforms do so much more than store product data: They maximize product value by transforming supply chain data into complete, compelling, and compliant product experiences for every buyer journey on every channel.

Enter Inriver PIM: a composable, multi-tenant SaaS PIM solution offering the most comprehensive functionality on the market. With built-in syndication and digital shelf analytics technology, advanced data-sharing, and more, inriver offers the complete solution for every business in every market.