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UNSPSC Categorization

Date Added: Jan 13, 2012
Author: bruce
Category: Science and Technology: Technology

    United Nations Standard Product and Services Classification (UNSPSC) is a global, open standard for classification of all types of goods and services. It is a five-level logical framework where each level is identified by a two-character numerical value. These levels are (1) Segment: aggregation of good or service families for analytical purposes. (2) Family: commonly recognized group of interrelated item categories. (3) Class: group of items sharing a common use or function. (4) Commodity: group of substitutable good or services, and (5) Business function: function performed by an organization in support of the good or service.

    Due to a unified UNSPSC Classification searching for products is much easier, even if the product itself is described in a national language. In the same way, local buyers of any equipment can purchase goods abroad using the UNSPSC codes-based menu. Another benefit of the UNSPSC classification is the ability to show all items at a given category level, from the most general to the most specific, according to the requested criteria. Such displays of items can group products not only identical by name but also products that have different features with similar functionality. For instance, blood pressure units can be grouped together despite different names and manufacturers, which allow competing not only by price but also the features or sale terms. The UNSPSC classification significantly increases the value of the service to the user and allows to better search for offers by shops, manufacturers and other sellers cooperating with them. Although the taxonomy is very accurate, it is worth applying it to your products.

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