Managing product data in an ERP is a mess. ERP systems are designed for broader operational tasks and often need help to handle the nuanced needs of product data management in the chemical and ingredient industry. In this article, we’ll examine the shortcomings of using ERP to manage product data and how to clean up the mess.
But first…
What is an ERP System?
Enterprise Resource Planning (ERP) systems are the backbone of many businesses, streamlining operations like inventory management, accounting and order processing.
An ERP is essential for managing day-to-day processes in any enterprise organization. However, an ERP is not suitable for centralizing and maintaining master data, especially for the complex world of chemicals.
Importance of Product Master Data Management
Product master data is all information related to your products. This includes everything from technical specifications and safety data sheets (SDS) to regulatory compliance details and marketing descriptions. Accurate and consistent product data is crucial for efficient operations, regulatory compliance and customer satisfaction.
Product data is even more critical for chemical and ingredient companies than for the average consumer brand. Complex formulations, varying regulations across markets and the need for detailed safety information require a robust system for managing product information.
Challenges of Managing Product Master Data in ERP
Some companies have multiple ERPs with inconsistent product and SKU naming conventions. These systems store very few marketing attributes. We often see cases where 90% of product attributes are trapped in technical data sheets, safety sheets, brochures, compliance documents, and PowerPoint presentations.
Additionally, ERP does not provide necessary capabilities, including:
Three Limitations of ERP Systems for Product Master Data Management
Chemical products involve intricate formulas, varying grades and purities, and diverse applications. Additionally, SDSs require specific formatting and regulatory compliance. ERP systems lack the flexibility to capture and manage this level of detail effectively.
ERP systems tend to have predefined data fields and structures that may not cater to the unique needs of the chemical and ingredient industries. These limitations can lead to data inconsistencies and difficulty capturing specialized attributes like flammability, reactivity or specific handling instructions.
2. Inability to Handle Specialized Data Structures and Attributes
Chemicals and ingredients often require specific data structures, such as multi-level hierarchies for complex formulations or classifications based on regulatory requirements. ERP systems may not offer the necessary functionalities to manage these structures, leading to data silos and difficulties retrieving accurate information.
3. Challenges in Integrating with Other Systems and Platforms
Product master data needs to flow freely across various systems like laboratory information management systems (LIMS), CRM and eCommerce platforms. ERPs struggle to handle these integrations seamlessly, creating data discrepancies and hindering efficient information flow.
Importance of Specialized Product Information Management (PIM) Solutions
PIM systems offer a dedicated solution for managing all aspects of product data. Unlike ERPs, PIMs are built for product data management allowing companies to maintain a single source of truth for all product data and related documents.
Data Structured for Industry-Specific Needs
A purpose-built chemical industry PIM offers preset data fields and structures that accommodate the intricacies of chemical and ingredient products. This allows companies to capture detailed information about formulations, safety data, regulations and various product variations.
Centralized Data Repository for Product Information
PIM creates a central repository for all product information, eliminating data silos and ensuring consistency across different departments and functionalities. This streamlines workflows, improves data accuracy, and facilitates collaboration across teams.
Integration Capabilities with ERP and Other Software
PIM systems excel at integrating with various software solutions, including ERPs, LIMS, and e-commerce platforms. This seamless integration ensures a single source of truth for product data across all systems, eliminating manual data entry and reducing the risk of errors.
How to Justify Adding a PIM with an Existing ERP
While implementing a PIM system requires an initial investment, the benefits often outweigh the costs. Improved data accuracy, reduced errors, and streamlined operations lead to significant cost savings. Additionally, PIM can optimize product information for your website, getting you one step closer to commercial excellence. enhancing customer experience and boosting sales.
How PIM Complements Your ERP
PIM doesn’t replace existing ERP systems. It complements them. A well-integrated PIM system simplifies data management by removing data silos and reducing the need for manual updates across different systems.
Benefits of Adopting a Specialized PIM Solution
Benefits of adopting a specialized PIM solution include:
Single Source of Truth for Product Master
A Comprehensive, Searchable Catalog
Power Systems & Improve Efficiency
Unlock the Value of Your Data
1. Single Source of Truth for Product Master
A specialized PIM solution gives you a unified product hierarchy and a single source of truth for all product data. This data will be clean, structured, comprehensive and harmonized across all suppliers, markets and regions.
2. A Comprehensive, Searchable Catalog
Anyone can browse your complete product offering by market, application, end-use, technology, product function, sustainability, properties or any other product attribute imaginable.
3. Enable Systems & Improve Efficiency
Clean product data feeds into your CRM, ERP, website, customer portal and all other systems. This will accelerate digital transformation efforts, strengthen internal business operations, help leverage your global scale and improve the experience you provide your customers.
4. Unlock the Value of Your Data
Unlock the value of your data and drive business growth. By structuring your data the right way, you will be able to uncover new applications for our products, surface cross-sell opportunities, build more accurate product recommendation engines and enable so many other opportunities across procurement, supply chain, sales, TS&D and product management.
To Sum It Up
Managing product data in ERP can be challenging at best for the chemical and ingredient industries. To address these challenges, implementing a specialized PIM system is crucial. Industry-specific PIM systems offer tailored solutions and seamless integration with existing ERPs, enhancing overall data management capabilities and ensuring accurate and industry-specific product data.
Your central source of truth for master data.
Easily manage your clean master data from within your dedicated data platform.
