PIM Trends 2011: E-commerce & multi-channel strategies are the drivers of product quality in commerce

The search for the right strategy for multi-channel commerce is the strongest driver of data quality in commerce. As a leading supplier of master data management (MDM) and multi-channel solutions, therefore we have put together seven important trends that will characterize product data management for the multi-channel environment for 2011.

1. Greater collaboration in the information supply chain:
Precise descriptions help sell products. In commerce, the collecting and organizing of product details is therefore of great importance. Manufacturers are in possession of the best data. The challenge is to retrieve their data in the best possible, and most importantly, simple manner. To ensure the most efficient operation possible, the motto has to be "100 % supplier self-service". Using a supplier portal, suppliers can perform this step simply and directly, and in addition they will also gain a better insight into the sales channels of their products through commerce.

2. Conversion rate and return rate as key factors:
Merchants who wish to avoid high return rates because of product descriptions in their catalog and/or their eCommerce site that are not matching the supplied items, must improve data quality first and foremost. Conversion rates also determines success in eCommerce. On the Internet, the displayed data represents the product. Customers have to rely on the provided text, images and videos when making their purchasing decision. The importance of product data in eCommerce is illustrated by the Heiler study of the topic available at heiler.com/research.

3. PIM enables Faceted Search:
Browsing by property, characteristic or value – these are the filter criteria, which influence todays eCommerce sites’ navigation. The theme of the faceted search is not new, but has recently established itself as an important factor for fast and successful search. But only perfect product data with all attributes make the "faceted search" function properly and the eCommerce world go round.



4. Quality needs rules:
Ensuring data quality is easier said than done. Besides care and intensive maintenance, there is a need for rules. It is in its Data Governance that an organization defines guidelines as to how and by whom product master data is to be handled. Lawgivers are also making increasing demands regarding compliance in several industries.

5. New jobs and processes in commerce:
In their search for the right multi-channel strategy, companies are increasingly considering the creation of a new job, that of the "Multi-Channel Manager". Universities, such as the University of Applied Science, Wedel in Hamburg, are even creating dedicated courses. On the one hand, the Multi-Channel Manager has to stand back from the channels in order to organize the data in a neutral manner, but on the other hand he or she must think along channel-specific lines, because data preparation and maintenance take place increasingly within the context of the marketing and distribution channel, as well as of the medium. It is precisely from these channels that the Multi-Channel Manager will create a central set and view of all data.

6. Multi-shop management:
Internationalization and a stronger focus on individual target groups, this is the dichotomy that major distributors want to bridge. The right eCommerce strategy will therefore involve the creation of individual brands and eCommerce sites to suit the different countries and target groups combined with maintenance of a central platform that can supply all the international shop systems.

7. Customer feedback acting as a correcting variable for product range management:
Bringing customer opinions and supplier knowledge together and combining customer evaluation from the Internet with the manufacturers' knowledge will enable merchants to control their product ranges to the best effect. The idea of user generated content turns to user generated products and assortments.

To summarize, the following will apply for 2011 and beyond: Manufacturers, merchants and customers will come even closer together in eCommerce. The concept of "efficient customer response" is becoming a reality, driven by the search for perfect product data as the basis of multi-channel commerce.

E-Procurement Trends 2011 Procurement Learning from B2C Trade

Procurement is becoming more and more of a value driver in international companies. Heiler Software, a leading provider of catalog management and e-procurement solutions, has compiled five trends that will be shaping electronic procurement starting in 2011. It is apparent that paradigms in the B2C business are increasingly influencing company’s procurement processes.

 

 1. More Transparency

Purchasing managers need maximal transparency when it comes to supplier prices, employees' ordering habits and the composition of suppliers' product lines. Modern dashboard technologies are now making comprehensive drill down analysis and global spend maps possible. This allows purchasing managers to optimally prepare for negotiations with suppliers. Catalog comparisons, product line analysis, price simulations and other analysis bring more transparency into the entire sphere of procuring indirect goods and services.

2. Index Search and Cost Reduction for Content Management
An index search of all internal and external catalogs helps reduce content management costs and furthermore, allows for better search results. Each supplier is integrated initially and then regularly delivers a search index, just like with a price search engine on the Internet. An index search is also capable of searching through all associated catalogs, both internal and external. This allows for a reliable search performance and standard user interface. The external products can be placed directly into the shopping cart if desired. "Rogue prices" can be identified by comparing prices with products that have already been ordered. Alternative products from other providers can also be found and compared.

3. Social Commerce Model
The internal product search engine in e-procurement is now on par with the methods known from B2C eCommerce. Each employee contributes his own private search expectations to the company’s internal procurement process: Facet searches, features and product suggestions are becoming increasingly important. Product evaluations in procurement are also becoming more significant: In this sense, colleagues giving help & recommendations become virtual friends.

4. Taking a Differentiated Look at Service Procurement
When it comes to procuring services through e-catalogs, different catalogs and their respective features will need to be taken into consideration. Standardized services, such as consultancy contracts or internal services, are already a reality. Complex products must be portrayed using forms with different variants and to also allow comprehensive price calculations or interaction with third party systems.

Services based on standardized service directories will be on the rise in electronic procurement in the coming years. Collaborating with suppliers will become even more important. Service orders can be inquired and reviewed and clarified by suppliers prior to contracting. The concrete contents and details can then be reported back to the purchaser after execution.

5. Flexible Use of the Internal Product Search
The idea of a single, central search engine for use in purchasing is in development. It must be integrated in portals in the same manner as with the SRM and ERP systems. It also provides the basis for the search for masters files. At the same time, the catalog seamlessly integrates into the respective third party system. A modern catalog system also offers all necessary interfaces, so that the above named systems can directly access price information in automatic order runs (i.e. article prices for MRP runs, update sources, EKI etc.).

 In summary, more and more elements from B2C trade and social commerce are finding their way into electronic procurement. As this happens, transparency and analysis are also becoming more important. Watch my talks about the most important factors for successful catalog procurement on Heiler TV (http://tv.heiler.com).