Compliance risks with product data: How PIM systems can help
In today’s highly connected world, product data is distributed across a multitude of channels – web shops, marketplaces, social media, mobile apps and stationary systems. This increasing omnichannel complexity has massively increased the demands on the quality, security and compliance of product information. Despite this, many companies do not fulfil the regulatory and internal compliance requirements. But why is this the case – and how can a modern product information management (PIM) system help?
Reasons for a lack of compliance with product data
Fragmented data sources
In many companies, product data exists in isolated "data silos" - sales manages its information in CRM systems, marketing maintains separate content for campaigns, while product development stores technical data sheets on its own servers. Product information is often distributed across numerous systems and departments: ERP systems, content management systems (CMS), Excel spreadsheets or manually maintained local databases. This fragmentation makes it difficult to consistently maintain and update information, which leads to outdated, incorrect or incomplete data records - a clear compliance offence. Problematic consequences of fragmented data sources:-
- Unclear responsibilities for data maintenance
- Increased susceptibility to errors in product releases
- Delayed market launches due to time-consuming correction loops
- Risk of warnings or fines due to incorrect product information
Lack of standardisation
Data standardisation not only means using uniform field names or formats, but also establishing defined processes for data collection, maintenance and release. Specifications such as ISO 8000 (data quality) or industry-specific standards (e.g. GS1, ETIM) require structured, standardised data formats. Without centralised governance, different data structures and formats are created that undermine regulatory requirements and increase risks in the supply chain. This lack of standardisation regularly leads to problems, particularly when connecting to external platforms such as Amazon, Zalando or specialised B2B marketplaces, as each platform requires specific data structures and mandatory attributes. Without a standardised database, time-consuming manual adjustments are required - or rejections and the associated loss of sales occur. Consequences of a lack of standardisation:-
- Higher operating costs due to manual post-processing
- Increased risk of inconsistencies between channels
- Difficult scalability for new markets or product range expansions
The complexity of international markets
International expansion means much more than just translations: Depending on the country, regulations on product labelling, material specifications, energy efficiency labels, recycling instructions, safety labelling (e.g. CE mark, UL certificates) or consumer information differ. Without a system for the controlled management of localisations, inconsistencies or violations of local regulations can quickly arise.
Challenges with international product data:
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- Managing country-specific legal requirements
- Adapting image material and marketing texts to cultural peculiarities
- Dynamic management of translations and localisations
- Ensuring legal compliance without manual sources of error
Security risks due to inadequate system architecture
Many companies use outdated software solutions or in-house developments that do not comply with current security standards (e.g. GDPR, ISO/IEC 27001). In the absence of protective mechanisms such as role-based access controls, encryption or monitoring, product data is vulnerable to manipulation, leaks or unauthorised access - which can result not only in compliance violations, but also massive reputational and financial damage. Many existing systems have serious weaknesses:-
- No SSL/TLS encryption for data transfers
- Lack of two-factor authentication for administrative access
- No role-based access concepts (anyone can access anything)
- Inadequate backup and disaster recovery strategies
How PIM systems can fulfil compliance and security requirements
A modern PIM system centralises, structures and protects product data throughout its entire lifecycle. Here are some key added values:
Centralised governance and data validation
A professional PIM system defines the "single source of truth" for all product data. It makes it possible to set clear validation rules and mandatory fields for each type of information (e.g. article number, product title, material composition, customs tariff numbers). This ensures that all product data is complete, up-to-date and compliant with internal and external requirements. In addition, complex approval processes can be set up in which marketing, legal and product management, for example, have to check and approve certain content one after the other before it is published. This clear workflow control reduces human error, documents responsibilities and ensures traceability in the event of audits. Advantages of centralised governance:-
- Consistent data quality across all systems and channels
- Adherence to internal compliance and quality specifications
- Seamless documentation of changes and approvals
Support for international compliance standards
PIM solutions offer functions for managing multilingual content, country-specific variants and local legal requirements. They make it easier for companies to fulfil specific requirements per market and minimise liability risks. Typical functions:-
- Localisation of attributes, texts and images per market
- Automatic rule check per country (e.g. CE obligation in the EU)
- Flexible management of legal texts, safety data sheets and material declarations
Omnichannel security through modern architecture
A powerful, cloud-based omnichannel architecture ensures that data is not only played out consistently across all sales channels, but is also managed according to the highest security standards. This includes
- Role-based access controls: Only authorised users are granted access to sensitive information.
- Audit trails: Every change is fully documented, enabling subsequent traceability.
- Encryption technologies: Data is encrypted both at rest and in transit to prevent unauthorised access.
- Certifications and integrations: Modern PIM providers support relevant standards such as ISO/IEC 27001 or SOC2 and can be integrated into Security Information and Event Management (SIEM) systems.
Automation and real-time monitoring
Modern PIM systems integrate technologies such as business rule engines and machine learning to largely automate product data processes. For example, systems can automatically recognise when mandatory fields are missing, texts do not meet certain quality standards (e.g. minimum length, no prohibited terms) or a marketplace API reports an incorrect transfer. Real-time monitoring dashboards also make it possible to permanently monitor data quality. Companies can recognise at a glance:- How high the current data completeness per product category is
- Which products are blocked due to compliance errors
- Where urgent action is required (alerting systems)
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- Proactive control of product data quality
- Early detection of compliance risks
- Reduction in operating costs thanks to fewer manual corrections
Conclusion
Product data is no longer just an issue for marketing and sales – it is a critical asset for regulatory compliance and corporate resilience. The increasing complexity of markets, security requirements and legal frameworks makes it essential to rely on centralised, highly secure and flexible systems such as modern PIM solutions. Companies that invest in a PIM today are not only creating the basis for efficient omnichannel strategies, but also for sustainable compliance and security in the digital economy.