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
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.
