Manufacturing SMEs are the backbone of the prosperous German engineering sector. Known for advanced technology and premium quality, they face a constant need to improve their processes. This is especially true for SMEs involved in collaborative production networks. Within these networks, each partner is required to constantly improve their process and product quality. One possible method to accomplish this, is by improving the information management based on the product state. An elementary requirement for such a system is to understand the SME specific challenges. This paper will provide an overview of special conditions of manufacturing SMEs, derive requirements on product state based information management and provide insights and recommendations of implementing such a system by using practical examples.