Usually product information is acquired from different sources and is often classified under different taxonomies. This makes product indexing difficult and in many cases products end up being listed under several categories. International Harmonized Codes, a taxonomy used by many countries for customs tariff purposes, is one of the examples of such systems. Because of this problem, HC and similar taxonomies are not really suitable for ecommerce.
That is why, most advanced catalog systems use classification system like The United Nations Standard Products and Services (UNSPSC Classification , which provides an open, global multi-industry standard for well-organized and precise classification of products and services. In e-catalogs the product content also has to undergo a normalization procedure to comply with a uniform product naming system. This uniformed nomenclature makes it easier for buyers to compare products and prices, and ensures exact match for relevant product searches. Depending on the quality of product information available, the catalog also requires rationalizing abbreviations and acronyms, synchronizing terminologies, converting unit of measurements, etc. The UNSPC or United Nations Standard Products and Services Code are the global standard for classification of services and products. It majorly assists in standard coding system for products and services. They provide a deeper understanding of the code set and how it is managed. It gives a valuable reference and decision-making tool for all those involved in the development, maintenance, evaluation, voting, delivery, and utilization of the code set, thereby providing qualitative and quantitative measures to ensure the consistency of the code set.
The United Nations Standard Products and Services Coding provide an open, global multi-sector standard for efficient, accurate classification of products and services. The UNSPSC coding and classification offers single global classification systems that can be used for company-wide visibility of spend analysis, cost-effective procurement optimization and full exploitation of electronic commerce capabilities. UNSPSC (United Nations Standard Products and Services Code) is an open, global electronic commerce standard that provides a logical framework for classifying goods and services with over 20,000 categories.
Many organizations use UNSPSC coding systems, as it offers five levels of hierarchical classification of products and services with 8 unique digits code for each category and also for its availability in 10 different languages. UNSPSC Classification helps the companies in many ways of which the most important one is data standardization. This kind of data standardization is not only required for company division data but also supplier data and across global locations. It also helps in process flow integration from RFX to ordering to accounts payable to general ledger and so on. By creatively combining people, process, data and technology one is able to deliver classification of purchase order items more rapidly, more accurately and at lower cost than alternatives. Owing to UNSPSC classification companies do not have to spend time and effort coming up with their own classification scheme for the products. It is an open standard and contributed by many people in the world. Thus, your business partners, clients and suppliers are most likely using the same classification.
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