Implementation of ERP in Manufacturing Industry: Don't Forget Your PIM Strategy

Manufacturers invest in ERP to fix the big operational problems: production planning, inventory accuracy, procurement workflows, financial reporting. And it works — the shop floor gets clearer, decisions get faster, and teams finally share the same operational numbers.

implementation of erp in manufacturing industry

Table of Contents

What You'll Learn:

    • Why ERP alone can’t solve your product data challenges – even with successful implementation

    • The hidden costs of managing complex product information without a dedicated PIM system

    • How manufacturers syndicate enriched product data to distributors and digital showrooms

    • Integration strategies that connect ERP operations with PIM content management

    • Real implementation steps for building a cohesive ERP-PIM technology stack

When manufacturers embark on the implementation of ERP in manufacturing industry initiatives, they’re making a massive investment in operational excellence. You’re talking about 47 percent of all new ERP implementations happening in manufacturing, with implementation timelines ranging from 6 months to 2 years depending on company size and system complexity. But here’s the disconnect: while your manufacturing ERP system streamlines production schedules, inventory management, and financial operations, it’s not built to handle the increasingly complex demands of product content management.

The reality? Manufacturing companies lead enterprise resource planning adoption because operational efficiency is critical. But despite ERP implementation in manufacturing helping producers overcome challenges by providing visibility and oversight into operations, manufacturing organizations still struggle with a fundamental problem: getting accurate, enriched product information to distributors, partners, and digital channels. That’s where Product Information Management software becomes your strategic differentiator.

1. Why ERP Implementation Falls Short Without Product Data Management

The bottom line: ERP systems integrate various business functions and operations across an organization, but excel at business processes, not product storytelling.

Your new ERP system tracks SKUs, pricing, and provides real-time inventory tracking to reduce stockouts across manufacturing operations. But it doesn’t manage the 50+ attributes your distributors need: technical specifications, compliance certifications, high-resolution images, installation guides, and safety data sheets. According to research on product information management, manufacturers struggle when product data is “incomplete, fragmented, and inconsistent across different applications”, siloed systems, business units, and channels.”

What gets missed

Even successful ERP implementation projects face data integrity issues. Data accuracy problems rank among common ERP implementation challenges including budget overruns, resistance from employees, and integration with legacy systems. Why? Because enterprise resource planning ERP was designed for operational data like order numbers, stock levels, financial management… not for managing complex product content that needs to be:

  • Enriched with marketing descriptions

  • Translated for multiple markets

  • Syndicated to hundreds of distributor portals

  • Updated across digital showrooms simultaneously

  • Maintained with version control for engineering changes

Manufacturing ERP systems integrate key business functions, including production, inventory, orders, and finances, to remedy the headaches generated by siloed systems. But production data isn’t the same as customer-facing content. This is where manufacturers need the Best PIM for Manufacturers working alongside their manufacturing ERP system.


2. The Critical Gap: ERP Handles Operations, Not Product Content

Why it matters: Your distributors can’t sell what they can’t understand.

The disconnect becomes painfully clear when you try to syndicate product data. Your ERP solution might contain 15 data fields per product. Your distributors need 75. Your digital showroom requires high-resolution imagery, CAD files, and comparison charts. An ERP system helps manufacturers consolidate their processes, integrating disconnected tools and automating manual processes to provide up-to-the-minute clarity into production, inventory, financial, and other core business data, but it’s got a file path reference for digital assets at best.

The real-world scenario

A manufacturing business implements a $2 million ERP system implementation involving software licenses, hardware, and consulting services. Production planning improves. Inventory management hits 98 percent accuracy. Financial reporting close time drops by 40 percent. The manufacturing sector celebrates another successful implementation.

Then marketing tries to launch a new product line across 200 distributor websites. The enterprise resource planning system has basic specs. But distributors need:

  • Application-specific product descriptions

  • Industry standards compliance certifications

  • Cross-reference data for competitive replacements

  • Localized content for regional markets

  • Digital assets optimized for web and print

Result: Manual processes, email chains, and a 6-month product launch delay costing significant cash flow. The ERP implementation market is projected to reach $229.79 billion by 2032, yet manufacturing companies continue facing content bottlenecks.

What PIM solves

Product Information Management systems provide the missing piece: a centralized system that manages customer-facing product content while your ERP handles back-office business functions. A centralized ERP system allows for smooth data sharing across different departments, enhancing collaboration… and PIM extends that to customer-facing channels, maintaining quality through automated validation rules and version control.


3. Manufacturing-Specific Challenges That Require Both ERP and PIM

Here’s what makes manufacturing different: Product complexity at scale with complex supply chains.

Industrial manufacturers face unique data challenges that neither ERP software nor spreadsheets can adequately address alone.

Challenge 1: Production processes meet product marketing

Your ERP manages engineering BOMs: part numbers, quantities, assembly sequences for production efficiency. Modern ERP provides real-time dashboards and analytics, giving managers instant visibility into operations. Your PIM manages marketing BOMs, how products are presented, bundled, and cross-sold. Manufacturing processes are inherently complex, involving procurement, production planning, quality management, and quality control. Add product content management to that mix, and system complexity multiplies.

Challenge 2: Supply chain visibility across channels

With an ERP system in place, manufacturers gain visibility into their supply chain, allowing them to track materials, monitor supplier performance, and identify potential disruptions. Manufacturing operations span multiple levels:

  • Raw materials tracking through supply chain

  • Production data from manufacturing processes

  • Finished goods ready for distribution

  • Service parts for ongoing maintenance

Each level needs different information for different audiences. Engineers need technical specifications. Distributors need selling points. End customers need application guidance. For technical data and documentation, Product Data Management (PDM) systems are often used. According to Wikipedia’s overview of PIM systems, PIM manages “customer-facing product data required to support multiple geographic locations, multilingual data, maintenance and modification of product information within a centralized product catalogue.”

Challenge 3: Compliance and quality control

ERP systems help manufacturers streamline operations and optimize resources, ensuring compliance with industry regulations. ERP systems simplify compliance by tracking batches, storing audit-ready records, and ensuring full traceability. Different markets demand different documentation. Your ERP tracks compliance status. Your PIM stores, versions, and syndicates the actual certificates and documentation distributors need to meet industry standards.

Challenge 4: Distributor syndication at scale

This is where manufacturers really feel the pain from existing systems. Without PIM, you’re managing 200+ distributor partners through manual processes and custom spreadsheets. The Best PIM for Manufacturers automates this workflow, ingesting data from your manufacturing ERP software, enriching it with marketing content, and syndicating formatted feeds automatically. This automation delivers cost savings by eliminating production delays caused by information gaps.

4. Building a Unified Strategy: ERP + PIM Integration

The winning approach: Complementary systems, not competing ones.

Smart manufacturing organizations recognize that the right ERP system and PIM serve different masters. ERP systems improve operational efficiency by eliminating manual processes and reducing the likelihood of errors. PIM serves customer experience. Together, they create a powerful technology stack supporting future growth.

How the integration works

Modern ERP platforms can integrate with various technologies, enhancing operational efficiency and decision-making capabilities:

  1. ERP as master for transactional data: SKUs, pricing, inventory management, order status

  2. PIM as master for product content: Descriptions, specifications, imagery, compliance documents

  3. Bidirectional sync: Real-time data exchange keeping both systems aligned

  4. Multi-channel distribution: PIM syndicates enriched data to distributors, websites, digital showrooms

Integration of the ERP system with existing tools like CAD, MES, and WMS is necessary for effective implementation.

Integration capabilities to prioritize

According to research on PIM solutions for manufacturing, effective systems integrate with order management systems and eCommerce software. For manufacturing companies, critical integration points include:

  • Product master data (SKUs, part numbers, basic attributes)

  • Real-time inventory availability monitoring

  • Pricing and cost information

  • Product lifecycle status (active, discontinued, phase-out)

  • Engineering change orders triggering content updates

  • Production schedules for demand forecasting and capacity planning

ERP systems can automate procurement processes, tracking supplier performance and ensuring timely delivery of raw materials. Strong integration capabilities ensure existing workflows continue functioning while new systems add value.

Benefits of the unified approach

The discrete manufacturing ERP market was valued at $5.54 billion in 2023 and growing rapidly. Implementing an ERP system can lead to improved efficiency and reduced operational costs in manufacturing. But manufacturing organizations who combine cloud-based ERP solutions with PIM see compound benefits:

  • Faster time-to-market: New products launch across all channels simultaneously

  • Reduced operational costs: By integrating finance with production data, ERP helps identify waste, track margins, and improve cost control

  • Improved efficiency: Single-source-of-truth architecture prevents conflicts

  • Enhanced visibility: ERP systems provide manufacturers with better visibility into their production processes, allowing them to monitor production progress, identify bottlenecks, and make adjustments

  • Better digital presence: Rich product content drives engagement

5. Implementation Roadmap: Getting ERP and PIM Working Together

Making it happen: A structured, multi-phase approach is required for ERP implementation, including needs analysis, software configuration, data migration, and staff training.

The conventional wisdom says implement your new ERP system first, add PIM later. But forward-thinking manufacturing sector leaders are flipping that script. Note that ERP implementations in manufacturing have a high failure rate, with estimates ranging from 40 percent to 90 percent, making strategic planning essential.

Approach 1: ERP first (traditional path)

If you’re already committed to ERP implementation in manufacturing:

Phase 1 – Stabilize ERP operations (months 1-12) A dedicated implementation team should include key stakeholders from IT, operations, finance, supply chain, and production departments to ensure comprehensive system alignment. Focus on core functions: production schedules, inventory management, financial management. The effective management of data cleansing is critical for maintaining system trust and reliable reporting. Rigorous testing, including user acceptance testing, is essential to ensure ERP systems perform under real-world conditions.

Phase 2 – Identify content gaps (months 9-12) As users adapt to existing systems, content management pain points emerge. Document where product information breaks down, like your distributor feeds, website updates, or sales collateral.

Phase 3 – Implement PIM (months 12-18) With operational systems stable, add PIM to handle product content. This phased approach to ERP implementation can help manage the process with minimal disruptions. Customization should be strategic to avoid making upgrades harder and increasing maintenance costs.

Approach 2: Parallel implementation (strategic path)

Smart manufacturers increasingly take this concurrent approach:

Concurrent deployment (months 1-18) Complex implementation processes for ERP systems often require 6 to 18 months, depending on planning and execution. Implement ERP and PIM simultaneously with clear boundaries. The deployment of ERP systems may sometimes be executed in phases, beginning with core functionalities like finance and inventory.

Benefits: Faster time-to-value, no content migration headaches, integrated existing processes from launch, improved cash flow.

Risk: More system complexity requiring experienced leadership. Research shows that 85 percent of businesses achieve success rates when hiring software consultants, making expert guidance essential.

Critical success factors

Resistance to change among employees can hinder the adoption of ERP systems, necessitating effective change management strategies. Based on best practices:

Executive sponsorship: Both ERP projects and PIM initiatives need C-level champions who understand these systems complement core business functions.

Cross-functional teams: Involving employees at all levels during the identification of business needs ensures that the ERP system meets organizational needs.

Change management: 77 percent of successful implementers cite internal alignment and leadership support as critical. Involving key users early in the ERP implementation process can help ease the transition and reduce resistance.

Data governance: Effective data management involves maintaining data accuracy, consistency, and security throughout the ERP lifecycle.

Vendor support: Cloud-based ERP solutions offer lower upfront costs and enhance scalability. Evaluating vendor options is essential when selecting an ERP system for manufacturing. Regular system updates and maintenance are essential to keeping an ERP system efficient.

Measuring improved efficiency

Defining specific goals helps set realistic success metrics for ERP implementation. Track these KPIs:

  • Time-to-market for new products (target: 50 percent reduction)

  • Distributor portal update frequency (target: real-time)

  • Product data accuracy (target: 99 percent+, reducing inventory discrepancies)

  • Manual process hours (target: 80 percent reduction)

  • Supply chain disruptions from information gaps (target: eliminate)

  • Production efficiency gains from better demand forecasting

Regular system audits and employee feedback are essential for continuous improvement post-ERP implementation.

Key Takeaways

The implementation of ERP in manufacturing industry represents a massive investment in operational efficiency. But without a complementary PIM strategy, manufacturing companies leave critical gaps in how they manage and syndicate product information.

  • ERP and PIM serve different core functions – manufacturing operations versus content management – and both are essential for modern manufacturers

  • Product complexity demands dedicated systems – manual processes can’t scale with distributor networks and supply chain management needs

  • Integration creates competitive advantage – manufacturers who connect ERP software with PIM outperform those relying on either system alone

  • The Best PIM for Manufacturers provides the missing piece – a centralized system for complex product data with automated syndication

  • Implementation timing matters – parallel deployment delivers faster time-to-value and optimized resource utilization than sequential approaches

Stop treating product content as an afterthought to your ERP solution. Build a unified technology strategy keeping operational data and customer-facing content in perfect sync.

FAQs:

QCan't ERP systems manage product information?

ERP systems handle transactional product data like SKUs, pricing, and inventory management. Manufacturing ERP systems integrate key business functions, including production, inventory, orders, and finances, to remedy the headaches generated by siloed systems. But they’re designed for business processes, not enriched content management. Manufacturing companies need PIM to manage the 50-100 attributes required for effective distributor syndication while maintaining data integrity.

How long does manufacturing ERP implementation take?

According to industry research, the timeline for ERP implementation can vary from 6 months to 2 years depending on factors like company size and system complexity. Smaller manufacturing businesses with cloud-based ERP solutions see shorter timelines, while larger manufacturing organizations requiring extensive integration capabilities face longer deployments. The implementation process includes system selection, customization, data preparation, employee training, and alignment with existing software and hardware infrastructure.

Why do so many ERP implementations fail?

ERP implementations in manufacturing have a high failure rate, with estimates ranging from 40 percent to 90 percent. Common challenges in ERP implementation include budget overruns, resistance from employees, and integration with legacy systems. Resistance to change is a significant challenge, as employees may be accustomed to old processes. Inadequate training can lead to low user adoption rates, while data migration errors require careful planning. Establishing a dedicated implementation team is crucial for addressing challenges during ERP deployment.

Why do manufacturers need both ERP and PIM systems?

The right ERP system optimizes manufacturing processes such as production planning, inventory management, financial management, supply chain management. ERP systems enable manufacturers to make data-driven decisions by providing real-time dashboards and analytics. PIM optimizes customer experience: product content, digital assets, and multi-channel syndication. Manufacturing environments require both because operational efficiency means nothing if distributors receive incomplete information preventing sales.

How do ERP and PIM systems integrate?

Integration typically works through bidirectional APIs where manufacturing ERP software pushes transactional data (SKUs, pricing, inventory status, production schedules) to PIM, while PIM maintains enriched product content and syndicates it to distribution channels. Modern ERP platforms can integrate with various technologies, enhancing operational efficiency. The Best PIM for Manufacturers offers pre-built integration capabilities for major ERP platforms, automating data synchronization while preserving data integrity.

What ROI can manufacturers expect from successful ERP implementation?

Studies show the average ROI for ERP projects is 52 percent, meaning for every $1 invested, manufacturing companies see a $1.52 return through cost savings, improved efficiency, and optimized resource utilization. Manufacturing organizations typically see ROI within 2.5 years, with 83 percent reporting that projects met expectations. Cloud-based ERP solutions often deliver faster ROI through lower ongoing maintenance costs, though high initial costs for ERP systems include software licenses, hardware, and consulting services.

How does PIM help with supply chain visibility?

PIM systems centralize product content and automate syndication to multiple distributor portals. Instead of manual processes creating custom spreadsheets for 200+ distributors, manufacturing sector companies use PIM to map data once and syndicate automatically. This reduces time-to-market, ensures consistency across the supply chain, supports capacity planning, helps monitor supplier performance, and prevents excess inventory through accurate product information flowing to all partners.