UNSPSC Classification

UNSPSC Classification

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:

Classification Level Example
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

Classification Level Example
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.