Master Data Management (MDM) creates and manages a single, consistent, and accurate source of master data across an organization. It’s a type of software that centralizes and standardizes various data types, integrating information from multiple systems within an organization to create a “Master” record. It includes the key entities and information that an organization relies on, such as products, customers, locations, and others. For example, a large retailer may use MDM to manage product data across systems like eCommerce, supply chain, and inventory. MDM ensures consistency and accuracy in product details — such as SKU, descriptions, pricing, and stock levels — across all channels, providing the same information to customers, suppliers, and internal teams.

A business can’t survive well without MDM. It provides a single source of truth for master data, ensuring consistency and accuracy across all departments and systems, and can improve data quality by identifying and correcting errors across the organization. MDM systems can also implement strict data governance rules to ensure data accuracy, privacy, and compliance with regulatory requirements.

MDM and PIM work together to form a highly efficient system for marketing and sales teams, leading to an improved product experience. MDM platforms collect product data from various sources and feed it into a single PIM system. Marketers then refine this data and combine it with assets within the PIM before distributing it across all sales channels.