UNSPSC stands for United Nations Standard Products and Services Code, a classification system for services and products used in eCommerce. It was a joint development set up in 1998 by the Dun & Bradstreet Corporation and UNDP (United Nations Development Program).
UNSPSC coding is currently managed by the US division of the GS1 Global Standards Association, which controls supply-chain standards across the world. UNSPSC classification covers everything from livestock to aircraft interface electronics, and has revolutionised areas like ASIC design and reverse engineering, allowing better supply management, spend analysis and purchasing control. Leading engineering companies have adopted the UNSPSC coding, often aided by Master Data Management tools such as specialist software.
MDM software allows easy adoption of UNSPSC coding standards, and does away with the need to develop in-house coding systems. UNSPSC classification isn’t mandatory, and other systems, such as eClass, exist. However, the GS1 supply-chain standard is the one most widely used worldwide, and the fact that the GS1 US organization controls UNSPSC coding has given the UNSPSC global recognition.
UNSPSC coding has a hierarchical structure, which a good Master Data Management software program will utilise by grouping purchase transactions effectively into the relevant categories, mapping them into the company’s existing commodity structure. The program will enable product awareness and discovery by listing similar services and products under one category. This simple uniform coding system also allows rapid identification of suppliers, and makes spend analysis easy on complex mechanical engineering projects.
We at Enventure Technologies offer a range of value engineering services, including Master Data Management solutions for eClass and UNSPSC classification purposes.
