Understanding the Key Differences Between PIM and PLM Software

Product information management (PIM) software is used to manage, centralize and update information and data needed to sell products across various sales and marketing channels. The main function of PIM is to effectively distribute customer-facing product information across channels so that data is accurate and up-to-date wherever a product is being sold, from a company’s website to third-party shopping networks like Amazon.

A PIM platform acts as the “single source of truth” for product data points, including product names and titles, descriptions, copy, specifications, directions, attributes, images, videos and localized content. If a brand like Ravensburger is selling a 1,000-piece puzzle in different countries, markets or sales channels, a PIM system ensures that the product information for each listing is accurate and comprehensive.

Because PIM manages information that customers view directly, it typically focuses on the marketing, sales and product experience side of operations. The goal of PIM is to reduce errors, make updates more efficient and ensure a cohesive branded experience across channels, all tasks that are difficult to achieve with manual spreadsheets and multiple platforms.

For that reason, PIM is often used by marketing, sales, e-commerce or product teams that are responsible for keeping product content updated and accurate. In 2024, more than 85,000 organizations used PIM solutions to manage 900 million products, according to market estimates.

Product lifecycle management (PLM) is a centralized system that manages processes and data for the entire lifecycle of a product, from conception and design to manufacturing and end-of-life disposal. PLM platforms connect teams and stakeholders across all product development stages, so that teams at each phase can collaborate by using the most up-to-date and accurate workflows and data.

When implemented effectively, product lifecycle management can streamline everything from product design and sourcing to compliance documentation, version control and product iterations based on customer feedback. The goal of a PLM system is to bring products to market faster and more efficiently, with better cost controls, so that brands can deliver products that best meet the needs of their customers.

As an internal-facing platform, PLM is typically used by product designers, engineers, manufacturing teams and even external partners who need to communicate during the product development process.

PIM and PLM are both product-focused tools, but their main differences lie in their goals. PIM is focused on the marketing, selling and promotion of products, while PLM manages the entire product development process from start to finish.

Product scope

Looking at the entire product lifecycle from beginning (ideation) to end (end-of-life), PIM focuses on the tasks that occur largely after a product is already designed and manufactured. Its goal is to ensure what has been created is effectively presented to the market.

PLM, on the other hand, covers the entire lifecycle, but is used heavily in the beginning stages of development. With PLM, engineering, design and R&D teams can work seamlessly to create appealing, profitable and compliant products.

PIM is critical to a product’s success once it’s on the market and PLM is crucial for building a strong foundation before a product ever goes to market.

Types of data

PIM manages customer-facing data, like product names, descriptions, photos and specifications. All these are required to effectively market and promote products. If one of these data points changes, say a newer version of a tried-and-true Ravensburger puzzle is released, for example, a PIM platform can update product data with one change on one platform.

PLM, on the other hand, manages internal technical and operational information that’s used by product teams to create the best products. This information, including CAD drawings, technical specifications, diagrams, bills of material, prototyping notes, revision history, compliance documentation, is strictly for internal teams in the process of creating products.

Types of users

As a product-led sales tool, PIM is used by marketing, sales and outreach teams that are tasked with the actual promotion of goods. A typical PIM user might be a digital marketing manager or e-commerce manager who’s responsible for ensuring that each online channel used to promote a product is displaying the same accurate information.

As an internal platform, PLM is used by engineers, product designers, product managers and manufacturing stakeholders who need access to specifications and data required to review, approve, or update products. A merchandising manager at EILEEN FISHER, for example, can access information related to a product’s components, sourcing data, costs and other helpful details all in one PLM platform.

Development vs. distribution

PLM is designed to improve development and manufacturing processes, so that a brand’s products are made as efficiently, effectively and profitably as possible. PLM software enables brands to create a continuous feedback loop that leads to better workflows, better products and better integration of feedback from customers and markets.

PIM, on the other hand, focuses on the distribution, rather than the development, of products. Although developing products is essential to running a profitable retail operation, without the right distribution, marketing and sales strategy, those products may not end up in the hands of an ideal customer.

This is a key difference between PIM and PLM, but also clearly shows that they are not necessarily competing platforms. In fact, some brands find the integration of PIM and PLM platforms to be the most effective approach to developing and distributing their products.

Despite their differences and use cases, PIM and PLM can work together to help brands deliver cohesive customer experiences. Both systems manage, organize and unify data and using them together ensures that data is uniform and accurate from ideation to product marketing and promotion.

Rather than thinking in terms of “PIM vs. PLM,” decision-makers can consider the idea of “PIM plus PLM.” For example, if a sustainable fashion and apparel brand uses PLM to design, source and manufacture their clothing, they can then feed that information into a PIM platform that would ensure accurate distribution of product content.

In this scenario, PIM and PLM are complementary forces that offer multiple layers of data reliability and integration. Together, PIM and PLM can deliver a strengthened product strategy with better products and increased sales thanks to accurate product data.

Deciding between PIM and PLM, or to use both, depends largely on an organization’s operations, processes and goals. Here are a few key considerations to keep in mind when deciding which platform to invest in.

Is the goal to develop and manufacture products, or market and sell them?

For brands with a core value proposition lying in the design and creation of products, PLM can be a key revenue- and growth-driver. For a retailer who markets and sells products but doesn’t necessarily design or manufacture them in-house, then a PIM platform may be more effective in streamlining their operations.

Finally, if an organization manages the entire product lifecycle in-house from ideation to promotion, then an integrated combination of PIM and PLM may offer product teams and customers the most seamless branded experience.

How extensive or complex is the product catalog?

PIM solutions are ideal for brands with large product catalogues, like those with thousands of SKUs with various data points, regions, markets or frequent iterations. For a small, boutique brand with limited product lines, then a PIM platform may be more powerful than what’s necessary.

Similarly, organizations that create complex, multi-component products, like aerospace technology, consumer electronics, manufacturing devices, can benefit from the data unification that comes from PLM. But simpler products with less complicated design elements may not reap the same scale-oriented benefits from a PLM solution.

What are the organization’s most pressing challenges?

Brands facing consistent delays, obstacles, or disruptions during product development can benefit from PLM solutions, while those facing pain points post-launch may find PIM to be more useful. A brand looking to create more sustainable products, for example, may find PLM solutions useful in streamlining sourcing and compliance processes.

Generally speaking, identifying an organization’s key workflow challenges and bottlenecks is one of the best ways to determine which platform can provide the most benefit.

Does the platform need to integrate with other systems?

In an ideal world, product data and workflows all live on the same, single-source platform. But in reality, some assets may be created and stored in other programs that require integration with a PIM or PLM platform, such as ERP or CRM systems.

While exploring software options, consider solutions that integrate PIM and PLM together, or can integrate seamlessly with the existing systems or tools brands may continue using after migrating to a new platform.

Global consumer electronics manufacturer Electrolux Group sells more than 60 million products each year, from large household appliances like refrigerators and stoves to smaller household goods like vacuums and coffee makers.

As their global reach scaled, the company’s legacy product data systems led to errors, delays and disruptions that made it difficult to stay on top of product information changes. When they moved to a modern PIM system, the brand found that they could manage, organize and update product details and assets in a fraction of the time.

Even with 80-plus team members working in the PIM system, Electrolux reduced the time spent managing product data by 20%, leading to more than $500,000 in cost savings in data-related labor.

Because the organization’s pain point was related to the management and updating of post-launch product information rather than the manufacturing of their products, PIM was an ideal solution to their needs.

PLM use case: multi-category grocery brand

As one private-label grocery brand scaled their operations to 20,000 products, their core challenge centered on how to migrate manual and siloed product development processes to one unified platform. Their pain point wasn’t solely about organizing and updating product information; it was a lifecycle-long search for how to design, source, manufacture and promote the most effective and profitable products.

With PLM, the brand unified their entire product lifecycle, from ideation and conception to end-of-life product disposal. Teams from product development, R&D, sourcing, packaging and sales could all collaborate on one platform, with product data holding consistent from start to finish.

In this case, the brand’s pain points applied to the entirety of product design and development, so PLM offered a comprehensive and holistic solution where PIM would’ve offered more narrow value.

They may have benefited from PIM as a sales and marketing approach down the line, but the unified power of PLM in the early stages of product design made their entire operation more streamlined.

In real-world retail applications, PIM and PLM aren’t competing solutions. For those facing sales and marketing challenges related to product information, PIM is an ideal tool to manage data. On the other hand, brands needing to unify the entire product lifecycle, PLM offers agile, all-in-one benefits that span all of product development.

For brands considering PIM, PLM, or integrating both platforms, Centric PXM Software™ offers end-to-end solutions that enable brands to improve their time to market, cut operational costs and deliver products their customers want.