A DISTRIBUTOR STORY: ERP VS. PIM FOR PERSONALIZED OMNI-CHANNEL SALES & MARKETING
When NETFORMIC CDO Rob Neumann hosted one of the Distributor Roundtables, he featured Ted Wichman CIO for Superior Communications, a T-Mobile/Verizon distributor, who shared with other distributors his experience and rear-view mirror glimpse into making the decision to add a PIM and determining what will work with best for his customers.
A DISTRIBUTOR STORY
“Our internal PIM was not geared towards marketing information. It was a manufacturing PIM,” explains Superior Communications CIO Ted Wichman, “when I looked at the (product) attributes available, the (navigation) menu hierarchy; they just weren’t web ready.”
“I did a lot of research on digital asset management (DAM) systems,” Ted continues, “tiny descriptions in ERP which work for production and assembly, but not for our website (search & display).”
“And not to mention the category tree; that was terrible too,” Ted adds, “(now) we’ve automated the menu system so I can read in the categories, push that to a server, and then Pimcore creates the (navigation) menus.”
"So, there was just so much difference between what we had and what we needed,” Ted concludes, “we needed an intermediate stage which is Pimcore.”
SCALABLE PRODUCT TAXONOMY
“That’ll be handled within Pimcore as part of the form fields,” Ted replies, “we set up (attribute) associations between accessories and handsets, all automated.”
“If I were to advise how to do it right (scalability, flexibility); let’s think about the structure, hierarchy, and how you want to relate objects (attributes),” advises Rob Neumann CDO NETFORMIC, “doing that much upfront work on long-term enhancements has tremendous benefit. Setting up your hierarchy and master data structure will lead to a lot of success.”
MERCHANDISING
“We have an MRO client that carries a large number of SKUs,” Rob offers, “one of the problems we solved was to connect their part number, the manufacturer’s part number, & competitor part numbers (together) with a common description.”
"We have the ability to do that in our ERP,” Marshall adds, “it’s a little bit messy and then we got to write code to connect to Magento.”
“All of that (product) relationship is more easily managed inside a PIM,” Rob explains, “what we did in the solution was provide (product) alternatives. So, if you looked for a Kohler faucet, you’d see the Kohler faucet you searched for, but you’d also see their (the client’s) OEM (lower cost, higher margin faucet).”
Through drag-and-drop functionality, PIMs offer companies the ability to construct product variants and attribute relationships that can be sliced-and-diced into creative market segment merchandising.
ADVANCED SEARCH
“Yeah, our ERP short description only allows, I don’t know, 43 characters. We have a short description for our website, which is usually different than what the ERP system is,” adds Marshall.
“I build some of my (ERP) descriptions based on the information from PIM. I’ll just fold it all together and make a description once…It’s all done.”
“Incomplete and poor product information is the greatest obstacle on the path to e-commerce and multichannel marketing success,” Rob advises, “finding something inside a million SKUs is really hard. So, having better data, better descriptions with fast retrieval is really important…being able to pull that out based on stronger Master Data.”
“We can put in tremendously large amount of information (in Pimcore),” Ted replies, “you can decide what to display,”
“The marketing team can use the PIM and actually schedule what goes on and off the website,” Rob offers, “they can update photos or information globally. We have a client that do a lot of sales (promotions) like 30% off, very Black Friday oriented. They use the PIM to schedule promotions, pull it on and off (the frontend) by date, for example.”
“If we add a new item, quote a new item, or bring a new item into stock,” Marshall relates, “it doesn’t automatically go on the website. We have to manually enter it into Magento, add image files, and then upload it.”
“Another little twist is that we do a lot of vendor managed inventory where some items might need to have a really unique description to fit on a label, Marshall continues, “oftentimes we’re always recreating and redoing the work over and over again.”
“For the ability to do what you just described,” Ted replies, “it’s the perfect use case for it…that’s exactly why you have (PIMs)…tiny descriptions in ERP which work for production and assembly, but not for our website (display).”
“That’s where I think the superiority of a PIM versus doing it in an ERP works better,” Ted advises, “you can have it in the ERP, but you’re really displaying it to the website, inside Magenta, and a PIM.”
WORKFLOW AUTOMATION
“We had a database link go down and these are all linked servers, this was right before a push to get a bunch of SKUs up on the site", Ted adds, “and Marketing lost their mind because they had to do it manually, ‘we have to look up images, and copy & paste?’”
“It really highlighted how much (PIM) automation makes a difference,” Ted continues, “you can just pull all that right over.”
"The only thing not automated is a (manual) review before it’s published to the website,” Ted concludes, “PIMCORE workflow (automation) where there might be one person reviews images, another for descriptions, and the last person can authorize it to be pushed to Magento, which is also automated.”
“NETFORMIC is the best partner we could have wanted – they have performed well under pressure!” Ted
“Setting up your hierarchy and master data structure will lead to a lot of success,” Rob concludes, (it’s) one of the reasons why we represent more than one PIM (platform)”. NETFORMIC uses a component-based development framework to create flexible, scalable, and integrated B2B eCommerce solutions for manufacturers and distributors of complex and high-volume products.