If you're a procurement manager, you probably think that a Product Information Management (PIM) solution isn't really relevant to your department. Indirect procurement is not the same as direct, after all.
In many ways, indirect procurement relies on accurate product information just as much as direct channels do. In fact, it's one of the main benefits that Product Information Management solutions can offer to any business. But how can this be relevant to indirect procurements? A PIM is essentially an IT solution for product data management, and it's needed for B2B e-commerce because customers expect fast and accurate answers about the products they're buying online. While most organizations have these bases covered in their direct sales channels with an existing PIM system, organizations looking to implement eProcurement should look at purchasing a PIM system for their indirect procurement needs too before going live with eProcurement initiatives.
For indirect procurement, the IT department has probably already taken care of these issues by implementing a PIM system for IT products. The PIM (product information management) system is a database of all products, services, and components that are used in the enterprise. It provides information on what suppliers are available and their prices as well as technical data such as specifications.
For example, if you need new computers or printers for your office then you would use your CMDB to determine what hardware is available from various vendors with different price/performance combinations and make a decision based on this information. Indirect procurement will benefit from access to this same source of accurate product information. PIM can also help with indirect procurement, which means procuring goods and services from suppliers that the buyer does not own or control. For example, suppose a company purchases office supplies from a vendor but does not have an established relationship with this vendor. The company could buy paper clips from one of several different vendors based on their price and availability, even if none of them directly provides paper clips to the buyer's own business units.
With no PIM system in place, it will take time for each individual supplier to enter product information into your company's ERP or other procurement system. Even then, each time you need to reorder a specific item (paper clips), you'll have to call up this one supplier again and repeat all of the same steps—finding out what sizes they offer; how many boxes per box size; whether they are available in large quantities; etc.—before placing an order. This process wastes your valuable resources in terms of both money and time because it is easy for mistakes or errors in information entry to occur along the way.
PIM can show purchasing departments exactly how much is being spent on what items over the course of any given time period, and this information can be used to make better decisions about future purchases. For example, if a company's employees have been buying paper towels at $0.25 per unit, but they are spending $100 in total each month, it would make financial sense for the company to purchase their paper towels in bulk so that they can reduce their costs per unit down to something like $0.10. Purchasing departments can leverage their PIM data to set price alerts so they never pay too much for products they purchase regularly.
PIM data can be used to set price alerts so you never pay too much for products you purchase regularly. If a supplier's prices increase above your pre-set threshold, the system will automatically place an order from another supplier. This ensures that you never pay more than necessary and always get the best value for money. As well as saving money, price alerts can save time by ensuring that companies don't have to constantly monitor their suppliers' pricing changes themselves. A PIM will also make it easy to generate reports on tail spend, which are often under-managed expenses that represent more than 20% of overall corporate spending.
Tail spend is typically managed by a small group of individuals who track purchases and inventory throughout the year. With a PIM in place, you can easily track product categories and competing suppliers—a key factor when managing tail spend effectively. Tail spend can sometimes be managed just as effectively as direct spend by watching product categories and competing suppliers.
Tail spend is the part of the budget that is spent on products that are not purchased on a regular basis. This can include items such as tools, office supplies and even food. The problem with tail spend is that it often goes under-managed, representing a large portion of overall corporate spending. However, there are ways to manage this type of expenditure better. You can use PIM in eProcurement to watch product categories and competing suppliers so you know when prices change or new products become available. When you have a PIM in place, catalog management is practically painless.
What does a PIM have to do with eProcurement?
As you know, eProcurement is the process of procuring goods and services electronically. The main goal of eProcurement is to make procurement more efficient by using technology. One major area where eProcurement helps companies is in catalog management. When you have a PIM in place, catalog management is practically painless because it allows you to manage your product information, pricing, availability and inventory much more efficiently than before! Your Product Information Management solution can offer more than just product information - it should offer you significant savings too. Product information management (PIM) has the potential to bring significant value to every company, regardless of its size or industry. PIM can help you save money, make money, improve productivity, improve customer service and experience as well as your brand.
Here are some examples:
1. Save: The ability to manage product data in one single system makes it easy for your business users to access all relevant product information quickly and efficiently. This means less time spent looking for information that is spread across multiple systems which not only saves them time but also reduces errors when entering data into your ERP system or website backend.
2. Make: As well as saving time on manual processes PIM helps organizations generate additional revenue by enabling them to offer better customer service; improving both accuracy of invoices generated through e-commerce sites while increasing conversion rates through enhanced content presentation techniques such as personalization based on past purchase history etcetera. Also by offering a more responsive approach with faster turnaround times companies are able to build stronger relationships with their customers leading ultimately leads towards repeat purchases thus increasing profitability over time within existing markets whilst also opening up new opportunities overseas where previously there was little competition due primarily because these economies were not ready yet digitally speaking...
A Product Information Management system is a huge asset to any organization that wants to streamline its procurement process. But the most robust PIM solutions offer far more than just product information: they can also help your organization save significant amounts of money by giving you better insight into your spending habits. A good PIM solution can help you set price alerts, build reports on tail spend categories, and manage catalogs effortlessly. With all these features in place, your business will always be able to spend less on purchasing and more on meeting the needs of its customers.