This document discusses the UNSPSC commodity coding system and its use for asset management. The UNSPSC system provides a hierarchical classification structure with 4 levels (or 5 levels if modified) to codify items. However, the document finds inconsistent use of UNSPSC codes in one company's data. Proper type guides are needed to consistently assign codes down to the qualifier level to fully map inventory. Applying codes can help organizations conduct spend analysis and rationalize suppliers if populated in their CMMS. Training is recommended to understand naming conventions and properly catalogue items with codes.

1. 1
Using the UNSPSC Coding
System
MRO Article 22

2. 2
Purpose
 To highlight different providers of Commodity Codes
 To highlight some issues with use of UNSPSC commodity codes
 To highlight a cleansing exercise carried out by a consultant
company
 To aim to ascertain the level of usage in asset management

3. 3
Commodity Codes Example
 This FESTO item listed on Amazon shows the EAN and
UNSPSC codification number

4. 4
Classification Providers
 There are a number of material classification organisations,
such as:
 UNSPSC
 ecl@ss
 Nato Codification System
 EAN (European Article Number)
 This document highlights the UNSPSC codification system

5. 5
What is the UNSPSC Classification
System

6. 6
UNSPSC Coding System
 The standard UNSPSC system is made up of 4 hierarchical
levels (but actually with a slight modification 5 levels can be
displayed)
 The standard 4 levels are:
AA AABB AABBCC
Class (6 characters)
Family (4 characters)
Segment (2 characters)
AABBCCDD
Commodity (8 characters)

7. 7
UNSPSC Coding System - Bearings
 UNSPSC coding system for a Ball Bearing (Level 4) is shown
below:
31 3110 311700
Bearings, Bushings, Wheels and Gears
Castings and Casting Assemblies
Manufacturing Components and Supplies
31171504
Ball Bearing
Class L3 Material Type L4

8. 8
Standard Structure 4 levels
 Level 4 show the type of bearing, although code 31171500
represents all types of bearings, i.e. the Noun
If you make the Bearing code, a Group,
then you can show the list as 5 levels as
shown from a another report in our MS
Access based tool
Class L3
Item L4

9. 9
Modified Structure
 Here is modified structure, where we show the bearing group and
the bearing types,
New Group L4
Standard
Material Type
Code, now L5
Class L3

10. 10
Audit Inconsistent Use of UNSPSC Codes
 This is an example from the data cleansing by consultant company for
a major bottling company
 For the same item type; 4 different codes have been assigned and a
mix of levels L4 (Noun) and levels L5 (Noun & Qualifiers).
 We assume, when they didn’t know the qualifier, they assigned the
higher level code, the Noun L4
2
1
3
4
L5 Bush TypeL4 Bushing

11. 11
Another Example UNSPSC Codes
 Item 50295111 is shown as a Bush and coded as a Sleeve Bearing
(which is also a BUSH)
Incorrect
The problem with some materials, is that different
manufacturers will use different names
in our training courses, we strongly recommend the
development of TYPE GUIDES to ensure
consistency of naming
Incorrect

12. 12
Bushing Type Guide
 This is one of our TYPE
GUIDES, that are prepared
to ensure consistency

13. 13
UNSPSC Codes
 In some case the UNSPSC does not go to the level of the Qualifier,
consider the noun CIRCLIP
 The 8 digit code is 31163226
 Our type guide for circlips indicates
the following types

14. 14
Assigning UNSPSC Codes
 The UNSPSC Codes provide a description in the format of Qualifier +
Noun, e.g. Ball Bearing
 If we add an extra field for the Noun & Qualifier, as shown, then it
becomes very easy to map this code to your inventory list very quickly
Modified UNSPSC Table to
include Noun + Qualifier
Mapped UNSPSC code to
inventory download,

15. 15
Application
 Many companies involved in asset management have populated
their CMMS with these type of codes
 We would interested to hear from anyone IF they use these
commodity codes to support replenishment, spend analysis and
for rationalisation of suppliers?
 In addition, which level is the most useful e.g. at the Bearing level
or the level of the Type of Bearing

16. 16
Summary
 The UNSPSC codes or similar can be easily included into your
MRO master data
 To select the right code consistently you need good cataloguing
data and to understand the naming conventions
 We cover this topic in both of our unique training workshops
MRO Spare Parts Optimisation and Inventory Reduction (for
inventory, maintenance & purchasing personnel
MRO Spare Parts Master Data Auditing and Cleansing
 For consultancy or training contact David Thompson, Ramsoft
(UK) on dave@ramsoftuk.com or www.ramsoftuk.com
David Thompson
http://uk.linkedin.com/in/davidthompsonreliability
Manager Linkedin Group: MRO Spare Parts Optimisation & Inventory Reduction