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UNSPSC - United Nations Standard Product and Service Code

Updated: Sep 10, 2023

When we choose to use a proven code set instead of recreating the material code system, one of the alternatives is the UNSPSC Code Set.

Chronology;

  • In 1998, under the auspices of the United Nations Development Program (UNDP), Dun & Bradstreet (D&B) and Inter-Agency Procurement Services Office (IAPSO) groups led the United Nations Common Procurement Code (CPC) and Dun & Bradstreet's Standard Product and Service Codes (SPSC). A Code Conversion Team was formed to combine the ) code sets.

  • The Code Transformation Team created the UNSPSC Code Set after stages such as unification, simplification, and taking the stakeholders' opinions.

Features;

  • It is a Classification Code, not an Identification Code.

  • -- Classification Code => Rebar

  • -- Identification Code => Rebar – A500 – DIA:32

  • It is a multisector standard

  • Consists of 2 digits x 4 scatter = 8 digit coding (+ Optional 1 scatter x 2 digits)

  • Product-oriented

  • Due to its hierarchical structure, it offers efficient, accurate, and flexible usage.

  • The Code set is usually updated once a year, even if no update requests are received.

  • In case of need for additional information, a quick response can be obtained by contacting info@UNSPSC.org .

  • It is financed by the annual dues it receives from its members.

  • As of February 2020, there are 156,478 codes (Wiki_UNSPSC).

  • All definitions are written in English but translated into 14 languages (not Turkish).

Advantages;

  • Firms provide a serious economy because they do not have to bother to set up their own code sets.

  • Provides speed and accuracy of data exchange with other stakeholders using the same code

  • Industry experience is utilized as it is constantly updated in light of feedback gathered from stakeholders in the industry.

Usage;

  • Since the same product can have more than one close description, careful research is required, assuming that the code will definitely exist.

  • In updates, if the code has changed;

    • -- Changed_ID => Legacy Code

    • -- Effective_ID => Current Code


Sample Code; Battery


Comparison of different code structures (Ref: UNSPSC White Paper);


Adoption Curve



Those who use this system in the world;

  • General Electric

  • Deutsche Telecom

Big software companies that implement it (Robert Handfield)

  • HANDLE

  • Oracle

  • Lawson

  • McKesson

What needs to be done to use it;

  • Creation of the team to implement the new code system

  • Determining the codes of the products according to the new code system

  • Application of the code system to the ERP system in use

  • Meeting with all stakeholders and ensuring that they also use this code system

  • Instant sharing of the structured code system with stakeholders at each update

 

References

  • https://www.unspsc.org/

  • Robert Handfield. The Lowly UNSPSC Is Moving up in the Supply Chain World! NC State University. [Online] [Cited: 08 20, 2020.] https://scm.ncsu.edu/scm-articles/article/the-lowly-unspsc-come-uppance-in-the-supply-chain-world.

  • UNSPSC. Wikipedia. [Online] [Cited: 08 20, 2020.] https://en.wikipedia.org/wiki/UNSPSC.

 



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