United Nations Standard Products and Services Code is a global reference taxonomy for products and services. It is designed to address the multiple needs of diverse groups involved in the buying, selling, analysis and regulation of goods and services worldwide.
It is a hierarchical product classification system with a 8 digit code. It is used a lot by the buyers to categorize the products and services. It helps the flow of information across different parties who are participate in business community and enable the data sharing.
The key benefits of using such industry standard product classification code are:
- Streamlining procurement process
- Improve the data sharingand passing between the seller and the buyer
- Improving data accuracy – Item Master cleansing
Here are some use scenarios in business transactional process:
- Help to search and identify the products and services
- Organize the product catalog
- Analyze the spent
- Analyze the sales
- Define the market segmentation
- Facilitate the E-commerce between trading partners
The major value in analytics is to help product dimension conforming. The product from various OLTP source system can be loaded into a central data warehouse and meaningfully grouped together and compared with the other when all the products are classified by the same classification system.
The product classification can come from two scenarios:
- Item master of the OLTP Source system has already been assigned with the UNSPSC
- The product item is not standardized and rely on the warehouse to clean up and standardize the product classification.
For more information about UNSPSC: