When working with Product Information Management (PIM) and Product Master Data Management (Product MDM) one of the most important and challenging areas is how you effectively onboard product master data / product information for products that you do not produce inhouse.
There are 4 main scenarios for that:
- Onboarding product data for resell products
- Onboarding product data for raw materials and packaging
- Onboarding product data for parts used in MRO (Maintenance, Repair and Operation)
- Onboarding product data for indirect products
Onboarding product data for resell products
This scenario is the main scenario for distributors/wholesalers, retailers and other merchants. However, most manufactures also have a range of products that are not produced inhouse but are essential supplements when selling own produced products.
The process involves getting the most complete set of product information available from the supplier in order to fit the optimal set of product information needed to support a buying decision by the end customer. With the increase of online sales, the buying decision today is often self-serviced. This has dramatically increased the demand for product information throughput.
Onboarding product data for raw materials and packaging
This scenario exists at manufacturers of products. Here the objective is to get product information needed to do quality assurance and in organic production apply the right blend in order to produce a consistent finished product.
Also, the increasing demand for measures of sustainability is driving the urge for information on the provenance of the finished product and the packaging including the origin of the ingredients and circumstances of the production of these components.
Onboarding product data for parts used in MRO
Product data for parts used in Maintenance, Repair and Operation is a main scenario at manufacturers related to running the production facilities. However, most organizations have facility management around logistic facilities, offices, and other constructions where products for MRO is needed.
With the rise of the Internet of Things (IoT) these products are becoming more and more intelligent and are operated in an automatic way. For that, product information is needed in an until now unseen degree.
Onboarding product data for indirect products
Every organization needs products and services as furniture, office supplies, travel services and much more. The need for onboarding product data for these purchases is still minimal compared to the above-mentioned scenarios. However, a foreseeable increased use of Artificial Intelligence (AI) in procurement operations will ignite the requirement for product data onboarding for this scenario too in the coming years.
The Need for Collaborative Product Data Syndication
The sharp rise of the need product data onboarding calls for increased collaboration between suppliers and Business-to-Business (B2B) customers. It is here worth noticing, that many organizations have both roles in one or the other scenario. The discipline that is most effectively applied to solve the challenges is Product Data Syndication. This is further explained in the post Inbound and Outbound Product Data Syndication.