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First, my definition of an MRO item identity is the combination of the item’s descriptions, the key specifications, and when applicable the Manufacturer’s Part Number (MPN). It’s the sum of the elements in the record that positively identify what real world item the record represents (a digital twin to use a popular term). All UNSPSC entities are identified with an 8-digit structured numeric code which both indicates its location in the taxonomy and uniquely classifies it, these 8 digits cover the top 4 levels of the hierarchy.

It also helps you avoid transactional issues and delays, such as purchase order related issues due to poor purchase information conveyed to suppliers. Accurate and consistent product classification with well-structured product attribute data is the most critical element for the success of any MRO Master Data Management (MDM) program. In order to achieve that, it is very important to have a good taxonomy in place, that defines material classifications at multiple levels and is followed across the organization. Furthermore, we assist clients with implementing multiple classification systems or mapping items across classifications such as eCl@ss to UNSPSC or the other way around. We have our own proprietary MRO taxonomy, developed with two decades of MRO data management (MDM) expertise in industry-standard taxonomies such as UNSPSC, eCl@ss, etc. Our MDM Software Specialists can suggest the most suitable taxonomy for your business based on your industry and purpose, or they can customize a standard taxonomy based on your needs.

We have the skills and tools to efficiently upgrade a client’s master database to classify materials and suppliers based on the selected classification system. We also help develop custom Material classification, for clients having specific needs that are not met by standard classification schema. A comprehensive material master Data Classification system will lead to benefits in different areas, one of which is improved spend analytics. Most executives struggle with gaining insights into inefficient purchases, and root cause analysis usually points mro material taxonomy to poor data classification and analytics.

• It utilizes the MRO Taxonomy within the SAP Classification to render systematic multi-lingual short & PO descriptions, identify duplicates and enforce ISO compliant Data Quality Processes & Standards via micro-services embedded within the solution.
• The OptimizeMRO’s approach combines automated steps within the platform, as well as a domain expert review which ensures the classification is accurate and reliable.
• It is imperative for all food processing businesses to manage their taxonomy so as to indicate the food grade specific Noun Modifier(s) with detailed attributes.
• Let’s take for example, a parallel between the taxonomy for the food industry vs generic taxonomy.
• It’s the sum of the elements in the record that positively identify what real world item the record represents (a digital twin to use a popular term).
• This system can be used in an inventory management system to categorize items that are purchased or manufactured.

Material classification / Data Classification

We also provide cross-referencing services, to map UNSPSC codes to other industry classification standards for products and services such as eCl@ss or eOTD, or vice versa. The second step is to set up a Data Governance framework supported by a technology platform that will guide the data management process and ensure that it stays on track. The governance framework should include data workflows, custom data rules, review process and compliance requirements. There are several taxonomies available for data classification, and the most common ones are – UNSPSC, eCl@ss, ETIM, NAICS, SIC, and HSC. UNSPSC is the most widely used taxonomy globally for MRO commodities, while eCl@ss is popular in Europe. Over the years, Enventure has mapped millions of SKUs and line items to the UNSPSC classification system.

Why should data be classified?

In addition, we provide a mapping of other classification systems, such as UNSPSC, to eCl@ss, for clients who are migrating from other taxonomies to eCl@ss. Throughout the years, we have developed a rich and comprehensive data dictionary (aka data taxonomy) for MRO data classification, including more than 5000 commodities. In addition to developing our own internal taxonomy, we also develop custom taxonomy for our clients. PiLog’s solution delivers the industry proven best practices to improve supply-chain, maintenance & procurement processes. It utilizes the MRO Taxonomy within the SAP Classification to render systematic multi-lingual short & PO descriptions, identify duplicates and enforce ISO compliant Data Quality Processes & Standards via micro-services embedded within the solution.

UNSPSC Classification Services

Based on your industry and business purpose, our MDM Specialists can suggest the most suitable taxonomy for your company, or customize a standard taxonomy based on your specific needs. We use our network of trusted patners located around the globe to process your data and apply the correct UNSPSC code to your dataset. We are MRO data experts that have correctly classified millions of line items to the correct UNSPSC codes based on years of experience. Using our partners, processes, and internal tools, we can classify your entire dataset to the UNSPSC code set in a timely manner to help deliver your company endless analysis and savings in indirect/direct spend. Many industries only focus on the top four levels in some cases a fifth level is included for services or functional classification rather than additional product types. The fifth level can also be used to introduce further granularity into your analysis process.

What is cross- referencing of data classification?

For example, good material classification is critical for spend analytics, so you have real-time visibility into procurement spend patterns, optimize inventory and lead to better vendor relationships. The United Nations Standard Products and Services Code (UNSPSC), is an open, global, multi-sector standard for efficient accurate classification of products and services. UNSPSC is also a flexible classification system for achieving company-wide visibility of spend and inventory analysis. UNSPSC is often used as an MRO taxonomy to group and relate similar items together for purchasing and supply chain analysis.

A good data classification system enables powerful spend analytics, while also enabling commodity managers to manage procurement more efficiently. The fundamental requirement of a good MRO material master is to have all commodities accurately classified as per industry standard classification system UNSPSC. Good classification systems follow a hierarchical structure, by grouping items into the right categories, which can be mapped to the company’s internal commodity structures as well. It is essential to have a reliable and scalable structure for the MRO materials database by developing a well structured MRO Data Taxonomy. An effective MRO taxonomy can efficiently classify materials into different commodity groups, which allows users to make intelligent decisions based on analytical data.

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In addition, we assist our clients in developing custom classification systems, in order to meet specific needs not covered by standard classification schemas. Verdantis stands as a trusted partner for MRO data cataloging, offering cutting-edge AI-powered solutions that address the complexities of managing and optimizing material, vendor, and service data. By leveraging tools like Harmonize and Integrity, organizations can achieve unparalleled data accuracy, eliminate inefficiencies, and ensure compliance with industry standards. Whether it’s during ERP transformations, inventory optimization, or ongoing data governance, Verdantis empowers businesses to streamline operations, reduce costs, and drive informed decision-making through robust and scalable master data management. Some of the well-known product classification systems are – UNSPSC, eCl@ss, ETIM, MESC, etc., and we are very familiar with selecting and implementing the right system, based on the client’s needs.

The Enventure readymade taxonomy helps organizations cut down overall MRO Master Data Management setup efforts and costs. The first phase of any MDM program involves taxonomy design and data modeling blueprint, and cycle time for this can be considerably reduced by using Enventure’s readymade taxonomy. We offer cross-referencing services, allowing you to map UNSPSC codes to other industry classification standards such as eCl@ss or eOTD, or vice versa.

• Data quality is largely a factor of what rules have been defined for creating new records and what systems have been put in place for adherence to those rules.
• The Co-Innovated with SAP® program is designed to help partners through the development lifecycle that culminates in an SAP-certified and tested solution against SAP Product Standards.
• Managing and integrating product data efficiently and effectively across a broader range of companies in an upstream or downstream supply chain is possible when classifications are mapped accurately.
• Our MDM Software Specialists can suggest the most suitable taxonomy for your business based on your industry and purpose, or they can customize a standard taxonomy based on your needs.
• An MRO material classification is a system that classifies and categorizes materials, parts, and components.
• The first phase of any MDM program involves taxonomy design and data modeling blueprint, and cycle time for this can be considerably reduced by using Enventure’s readymade taxonomy.

A taxonomy is a system of classification to organize MRO data into categories and subcategories. The Co-Innovated with SAP® program is designed to help partners through the development lifecycle that culminates in an SAP-certified and tested solution against SAP Product Standards. Because most descriptions we classify don’t start with any level of quality or formatting, it takes a human to review, analyze, then apply the correct classification. Since 1997, our goal has been to help clients boost their reliability, mitigate risks, and cut costs through the optimization of their MRO data. AI and Machine Learning tools can automate the classification and data cleansing process, making MRO cataloging more efficient.