Source: Sourcing Force
Focusing on Business Specific Category Sourcing Groups is key, with or without UNSPSC.
Transforming raw Spend and Supplier data from payment and purchasing systems and reclassifying it into common, meaningful sourcing categories creates significant visibility and leverage into cost savings opportunities.
Many companies agree this is a vital discovery process and it is the key to successful results, but how the data is classified can be a challenge.
Raw data and UNSPSC
Raw data can be classified in a variety of ways.
One of the most common line item classification taxonomies is UNSPSC, which stands for the “United Nations Standard Products and Services Code”.
It is an 8 character code that breaks down 2-2-2-2 by segment, family, class and commodity.
If an item is classified to all 8 characters, it provides a detailed description across over 43,000+ UNSPSC definitions.