UNSPSC Classification stands for United Nations Standard Products and Service Code.
UNSPSC is an open standard providing taxonomy classification of products and services. The classification system is publicly available and structured in the hierarchical base.
UNSPSC classification system constructed in Segment, Family, Class and Commodity.
UNSPSC system facilitates sales function through better route level classification drill down the focus to exact products. UNSPSC classification ultimately helps in improvement of the financial health of the organization through
• Rationalizing vendors
• Standardizing products
• Better understanding of the volume leads to better negotiation of the price
• Enhance purchase efficiency.
UNSPSC Classification System:
|Segment||44000000 - Office Equipment and Accessories and Supplies|
|Family||44100000 - Office machines and their supplies and accessories|
|Class||44103100 - Printer and facsimile and photocopier supplies|
|Commodity||44103127 - Photocopier Toner|
|Segment||42000000 - Medical Equipment and Accessories and Supplies|
|Family||42320000 - Orthopedic surgical implantss|
|Class||42321500 - Orthopedic trauma implants|
|Commodity||42321506 – Bone Screw|
Benefits of UNSPSC Classification
• Data Classification ensures proper identification of line-item transactions at the category level as well as the supplier level.
• Data Classification provides a direct way to create visibility and impacting the strategic sourcing activities.
• Data Classification centralizing the procurement process and leverage volume for better pricing.
• Product Standardization through data classification reduces the inventory.
• Data Classification helps in budgeting and forecasting spending.