Littlebit Technology is collaborating with plugilo, a start-up, on a central data platform for ICT products. This platform will eliminate incorrect and outdated product data through automation and manufacturer validation.
Product data is like a surface that appears smooth at first, but upon closer inspection, unevenness becomes apparent. Jochen Bless, the COO of the DACH distributor Littlebit, uses this metaphor to describe the central problem of IT distribution.
The Hünenberg-based distributor sells ICT products and IT components to customers such as Media Markt, Amazon, and medium-sized technology trading companies and integrators. In a business with low margins, incorrect product data can have costly consequences.
Automation fails due to poor data quality
Littlebit automates numerous processes based on product data. For instance, a product’s package dimensions determine the shipping method. If the manufacturer’s specifications are incorrect or missing information, manual rework is required, which is time-consuming and costly.
„It’s hard to understand why we still have to talk about the quality of product data today,“ says Michael Urban, who joined plugilo in summer 2024. The former distribution executive identifies two main causes: manufacturers‘ differing attitudes toward the issue and the fact that product data is stored statically in shop and ERP systems and becomes outdated.
A central database with AI support
plugilo founder Michael Mohr has spent years developing solutions for processing product data for retailers and retail chains with his company, Content Factory 1. With plugilo, he is now taking a different approach: the platform collects, standardizes, and normalizes product data with AI support and stores it centrally.
The data comes from various sources, including distributors such as Littlebit and vendors. The system processes different formats: CSV, API, screen scraping, and PDF files.
Vendors retain data sovereignty
An essential element of the concept is that vendors can check, modify, and update the data records stored in the database. Then, they certify the data source as reliable.
„After all, vendors own the product data and must retain sovereignty over it,“ Mohr explains. More than half of the contacted manufacturer partners agreed to collaborate.
Instead of static entries, there are dynamic data cards
To keep product data continuously up to date, plugilo developed cards — containers that transport data. If information in the master database changes, the cards update in real time.
Customers of the Littlebit online shop can load and use the data cards via a plugilo connector next to the item. Product data changes or new images are automatically transferred.
In the future, Littlebit will be able to provide its customers with manufacturer-certified data for ERP systems and online shops. „The more distributors, retailers, and manufacturers participate, the more useful the database becomes,“ says Urban. Those who have high-quality data at their disposal have a competitive advantage.