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%20Analysis%20September%[Link]

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What is the UNSPSC? Top

The United Nations Standard Products and Services Code (UNSPSC) is a hierarchical convention
that is used to classify all products and services. It is the most efficient, accurate and flexible
classification system available today for achieving company-wide visibility of spend analysis,
enabling procurement to deliver on cost-effectiveness demands and allowing full exploitation of
electronic commerce capabilities.
The UNSPSC was jointly developed by the United Nations Development Programme (UNDP) and
Dun & Bradstreet Corporation (D & B) in 1998. It has been managed by GS1 US since 2003.

Who owns the UNSPSC? Top

The United Nations Development Programme (UNDP) owns all rights to the UNSPSC. The
U.S. Copyright Office has also granted copyright registration to the UNSPSC and the
U.S. Patent and Trademark office has granted trademark protection. UNDP addresses
all legal issues and will take appropriate legal action to protect its interests in the
UNSPSC.

Who manages the UNSPSC? Top

The UNDP appointed GS1 US as code manager in May 2003. The code manager is
responsible for ensuring compliance with the principles of the UNSPSC as well as the
integrity of the code schema. GS1 US is responsible for overseeing code change
requests, industry revision projects, issuing regularly scheduled updates to the Code,
communications with members, as well as special projects and initiatives as
determined both by the UNDP and member requests.

Does GS1 US make all the management decisions Top

regarding UNSPSC?
As Code Manager, GS1 US is charged with managing code maintenance, designated
projects, appropriate communications with members and the user community and
other duties as assigned. The UNDP has taken an active role in developing criteria
and. The UNDP is also actively participating in outreach and communications to
members and other organizations who share an interest in the UNSPSC. The
Membership and user communities of UNSPSC provide vital information to the
management team to guide on strategy, policies, processes and other areas as
needed.

Why should businesses classify products & Top

services?
Classifying products and services with a common coding scheme facilitates
commerce between buyers and sellers and is becoming mandatory in the new era of
electronic commerce. Large companies are beginning to code purchases in order to
analyze their spending.
Nonetheless, most company coding systems today have been very expensive to develop. The
effort to implement and maintain these systems usually requires extensive utilization of resources,
over an extended period of time. Additionally, maintenance is an on-going, and expensive,
process. For each new item coded, it takes on average of an hour and a half to assign a code.
Also companys suppliers usually dont adhere to the coding schemes of their customers if they
assign codes at all.
Much duplicated effort and expense has gone into making codes. If there was a single universal
coding convention that all companies could draw from even if the companies wanted to
customize it for specific purposes there would be a great deal of savings.
By classifying their products & services, businesses can assist their customers with:
Finding and Purchasing - a product and service coding convention brings
many benefits to the purchasing function of a company
Product discovery - a common naming convention allows computer systems
to automatically list similar products under a single category. When a person is
searching for the category, he or she finds precisely the things being discovered
and nothing else.
Facilitates expenditure analysis - when every purchase transaction of an
enterprise is tagged with a common set of product identifiers, purchasing
managers are able to analyze enterprise expenditures.
Control and uniformity across the company - codes bring a single,
uniform view of all expenditures in a company. It ties together all departments and
divisions, including business functions such as purchasing and settlement.
Should UNSPSC be used in our company? Top
All companies should consider using the UNSPSC as a routine matter of business.
The Marketing and sales organizations should endeavor to mark-up electronic catalogs, invoices,
and other commercial documentation with the UNSPSC.
Purchasing departments should incorporate the codes in purchasing systems to assist employees
throughout the company to find and purchase supplies and, for themselves, to analyze the
supplies expenditures of the company.
By embedding UNSPSC classification standards into your management systems - purchase
orders, invoices, electronic documents, product catalogues, websites - all parties throughout the
extended supply chain benefit.
Here are some examples:
 Procurement can keep an eye on how much is spent buying what. This
information is readily available to them to analyze the specifics in the buying
process at the level of detail that most suits the business needs in a timely and
precise manner. They can cut in half or less the time it takes to find the products
needed by searching by commodity code through brokers, on line exchanges,
business partners, etc. across the globe. They can spot buying patterns across
departments or business units to leverage better conditions from suppliers and
realize overall savings.
Marketing is able to get field data fast for market research, product
development, and sales analysis, ultimately delivering to the company's bottom
line, via customer satisfaction.
Sales can monitor sales channels and distribution all the way to the store shelf
or end user. They can gather market intelligence quickly via electronic platforms
for accurate sales analysis. They can extend the reach of their products to
customers across the globe by publishing e-catalogues, registering with search
engines or third-party market places.

How does UNSPSC work? Top

XX Segment
The logical aggregation of families for analytical purposes
XX Family
A commonly recognized group of inter-related commodity categories
XX Class
A group of commodities sharing common characteristics
XX Commodity
A group of substitutable products or services
XX Business Function
The function performed by an organization in support of the commodity
All UNSPSC entities are further identified with an 8-digit structured numeric code which both
indicates its location in the taxonomy and uniquely classifies it. An additional 2-digit suffix
indicates the business function identifier. A structural view of the code set would look as follows:
Category
Hierarchy Number Name
Segment 43 Information Technology Broadcasting and
Telecommunications Communications Devices and
Accessories
Family 20 Components for information technology or broadcasting
or telecommunications Computer Equipment and
Accessories
Class 15 Computers Computer accessories
Commodity 01 Computer switch boxes Docking stations
Business 14 Retail
Function

For more information on how the UNSPSC hierarchy is set up and how UNSPSC works,
pleaseread the White Paper.

If I can't find the code for my product, what Top

should I do? How do I make changes to the code?
How do I add a new code?
We highly encourage our members to request codes that they feel will enhance UNSPSC's
current capabilities, as well as sponsor full segment revision projects as appropriate. UNSPSC is
a member-based organization and we work closely with our members to address issues of both
breadth and depth in the codeset.
Any individual or entity can request a change to the code (addition, deletion, move, or edit) after
becoming a member of UNSPSC. Requests are posted on the UNSPSC website and voted by
Segment Technical Advisers - voting members who have elected to become actively involved in
the update of the UNSPSC by contributing their specific expertise.

How do I find a product or service in the code? Top

The easiest way to find the codes that you are searching for is to do a search of the codeset.
Click on Search the Code at the top of the page. We suggest entering a description in the
Search Title box. It can be a partial description; use % as a wild card. For example, entering
%Clamp% will return all codes containing the word clamp. From there you can determine
specific clamps that may pertain to your business.
Sometimes a commodity may not be found because:
Different phrases are used in different regions. For example, the term cooling
exchanger is the same commodity as a heat exchanger; allen wrenches are
the same commodity as a hex key
The item may be described by what it is rather than how it is used.
The code is only searchable in English (this will soon change)
What is my company's UNSPSC? Top
UNSPSC is a commodity code that identifies goods and services sold by a company, not
generally the company itself. If another company is asking for your UNSPSC, it is probable they
are trying to determine your primary area of business.

What is the difference between NATO and Top

UNSPSC?
The UNSPSC is an "open source" standard for content, meaning that it is truly in the
public domain. The United Nations owns the copyright to the work contributed by the
UNSPSC volunteer experts. For this reason, the codeset can be used without any use
restrictions or licensing fees. While the NATO system is a very good system, it is
designed to meet the needs of NATO whereas the UNSPSC is designed specifically for
commercial procurement purposes.

How does UNSPSC differ from NAIC and SIC? Top

The Standard Industrial Classification (SIC) and the North American Industry
Classification System (NAICS) coding systems which describe the operations of a
business, while the UNSPSC provides a very specific product-centric viewpoint.

What is the United Nations Standard Products and Services

Code (UNSPSC)?
The United Nations Standard Products and Services Code (UNSPSC) is a classification of products and
services developed by the United Nations Development Programme (UNDP). It is an open, global, multi-
sector standard and is internationally used by industry and government in procurement to identify the
commodity acquired, and to support financial analysis of goods and services (i.e. how much is spent, on
which products, and from which suppliers). For more information visit theUNSPSC website.

By April 2017, the UNSPSC will replace the Government of Canadas current system of commodity
classification: the Goods and Services Identification Numbers (GSIN).

What are the timelines and scope for UNSPSC implementation?

GSIN codes and UNSPSC codes will run concurrently for a time period, until UNSPSC fully replaces
the GSIN in the Government of Canada by April 1, 2017.

The GSIN classification, as used by PWGSC, consists of over 5,000 codes. All of these codes will be
mapped toUNSPSC. This mapping is intended for use across the Government of Canada. The concordance
between the GSIN andUNSPSC will be shared by PWGSC through [Link], and will assist
departments in transitioning to UNSPSC.

Once implemented, UNSPSC will only apply to new procurement records historical data will not be
converted toUNSPSC. They will retain the GSIN codes.

Will access to the UNSPSC be free and open?

Yes. Once implemented, the UNSPSC code set used by the Government of Canada will be free to download
as open data without restriction or cost on [Link]. Download UNSPSC data

What are the benefits of adopting the UNSPSC?

The adoption of the UNSPSC as the new data standard on classification for procurement items will result in
the following benefits:

Improved classification structure

Although the GSIN has a hierarchical structure, it uses a dated classification system (or taxonomy) that
does not reflect many of the newer commodity types and predates modern computing. Over time, it has
been customized by departments to include non-commodity information, proprietary information, and
business functions, resulting in an inconsistent classification system. Furthermore, the structure across the
three main categories of Goods, Service, and Construction vary as they originate from three different
classification systems. In contrast, the UNSPSC has a strict classification structure and does not incorporate
proprietary or end-use information into the codes. Business functions are added as the last level of the
hierarchy, so that the structure of the classification remains consistent.

Ease of sharing through an international standard

Consistent classification of procurement items across the Government of Canada will help to increase the
quality of information about expenditures, improving the management of goods and services, financial
information and the interoperability between departments. The UNSPSC is an internationally recognized
coding structure used in industry, making it appropriate for open data initiatives.

Centralized governance
The UNSPSC is governed by GS1 US, in accordance with input from UNSPSC members for the
development and direction of the classification. The UNSPSC is available in many languages, including
English and French, and is regularly updated and maintained. The central management of
the UNSPSC results in one authoritative classification system that can used and shared internationally.

How will suppliers use UNSPSC on [Link]?

Similar to the current GSIN Code, businesses will use UNSPSC to:

Identify goods/services they sell.

Navigate across all Procurement Data on [Link] (e.g. Tenders, Contract History, and
Standing Offers and Supply Arrangements) Please note: historical records using GSIN codes prior
to the implementation ofUNSPSC will not be migrated to UNSPSC. During a transition period, users
will be able to search using GSINcodes or the UNSPSC until final implementation of UNSPSC in
April 2017.

Will government buyers use UNSPSC?

Government buyers will use UNSPSC to identify goods and services in solicitation documents using the
Tender Management Application (TMA). PWGSC Acquisitions program buyers will continue to
use GSIN codes in the Automated Buyer Environment (ABE) even after full adoption of UNSPSC. Any
system that replaces ABE will use UNSPSC.

How does the move to UNSPSC affect some departments

ability to useNATO Stock Numbers?
The NATO Stock Number is an inventory classification used within the Government of Canada, primarily by
the Department of National Defence (DND) and Canadian Coast Guard, to identify the stock of specific
materiel goods. In contrast, the GSIN is a demand classification system used by the Government of Canada
to identify products and services by category for procurement.

The first component of the 13-digit NATO Stock Number is a 4-character code based on the United States
Federal Supply Code (FSC). NATO Stock Numbers are used for goods only; they do not identify the
stock/inventory of services. Only Goods GSIN codes are linked to the NATO Stock Number because it
shares the common FSC core.

As a result, transitioning from GSIN to UNSPSC will not affect the use of NATO Stock Numbers for inventory
classification in Canada. The concordance will allow for the FSC codes to map to UNSPSC, and allow for
the continued link betweenGSIN and UNSPSC.

How can I stay informed about the progress of

the UNSPSC initiative?
We encourage you to visit the site frequently as we will update the site with new information throughout the
transition process. To get the latest updates about the UNSPSC initiative and other procurement-related
news items, you may subscribe to the

Definition - What does Data Enrichment mean?

Data enrichment is a general term that refers to processes used to enhance, refine or otherwise
improve raw data. This idea and other similar concepts contribute to making data a valuable asset
for almost any modern business or enterprise. It also shows the common imperative of proactively
using this data in various ways.

Data enrichment can be a useful tool in the effort to add value to

and improve the quality of your organizations data

Definition - What does Master Data Management (MDM)mean?

Master data management (MDM) refers to the management of specific key data assets for a
business or enterprise. MDM is part data management as a whole but is generally focused on the
handling of higher level data elements, such as broader identity classifications of people, things,
places and concepts

Database normalization, or
simply normalization, is the process of organizing
the columns (attributes) and tables (relations) of a relational
database to reduce data redundancy and improve data integrity.

Normalization involves arranging attributes in tables based

on dependencies between attributes, ensuring that the
dependencies are properly enforced by database integrity
constraints. Normalization is accomplished through applying
some formal rules either by a process of synthesis or
decomposition. Synthesis creates a normalized database design
based on a known set of dependencies. Decomposition takes an
existing (insufficiently normalized) database design and
improves it based on the known set of dependencies.

Data normalization is a process in which data attributes within a data model are organized to increase
the cohesion of entity types. In other words, the goal of data normalization is to reduce and even
eliminate data redundancy, an important consideration for application developers because it is
incredibly difficult to stores objects in a relational database that maintains the same information in
several places. Table 1 summarizes the three most common forms of normalization ( First normal form
(1NF), Second normal form (2NF), and Third normal form (3NF)) describing how to put entity types into
a series of increasing levels of normalization. Higher levels of data normalization are beyond the scope
of this article. With respect to terminology, a data schema is considered to be at the level of
normalization of its least normalized entity type. For example, if all of your entity types are at second
normal form (2NF) or higher then we say that your data schema is at 2NF. Table 1. Data
Normalization Rules.
- See more at: [Link]

Data cleansing, data cleaning,

or data scrubbing is the process of detecting
and correcting (or removing) corrupt or inaccurate records from
a record set, table, or database. Used mainly in databases, the
term refers to identifying incomplete, incorrect, inaccurate,
irrelevant, etc. parts of the data and then replacing, modifying, or
deleting this dirty data or coarse data.[1] Data cleansing may be
performed interactively withdata wrangling tools, or as batch
processing through scripting.
Procurement is the act of finding, acquiring,
buying goods, services or works from an external source, often
via a tendering or competitive bidding process. The process is
used to ensure the buyer receives goods, services or works the
best possible price, when aspects such as quality, quantity, time,
and location are compared.[1]Corporations and public bodies
often define processes intended to promote fair and open
competition for their business while minimizing risk, such as
exposure to fraud and collusion

The act of obtaining or buying goods and services. The process includes preparation and processing of a demand as

well as the end receipt and approval of payment. It often involves

(1) purchase planning,

(2) standards determination,

(3) specifications development,

(4) supplier research and selection,

(5) value analysis,

(6) financing,

(7) price negotiation,

(8) making the purchase,

(9) supply contract administration,

(10) inventory control and stores, and

(11) disposals and other related functions

Spend analysis is the process of collecting, cleansing, classifying

and analyzing expenditure data with the purpose of decreasing procurement costs, improving
efficiency, and monitoring compliance.

Spend analysis is the process of collecting, cleansing,

classifying and analyzing expenditure data with the purpose of
decreasing procurement costs, improving efficiency, and
monitoring compliance. It can also be leveraged in other areas of
business such as inventory management, budgeting and
planning, and product development.

There are three core areas of spend analysis - visibility, analysis

and process. By leveraging all three, companies can generate
answers to the crucial questions affecting their spending,
including:

What am I really spending?

With whom am I spending it?

Am I getting whats been promised for that spend?

Spend analysis is often viewed as part of a larger domain known

as spend management which incorporates spend analysis,
commodity management and strategic sourcing.

Companies perform spend analysis for several reasons. The

core business driver for most organizations is profitability. In
addition to improving compliance and reducing cycle times,
performing detailed spend analysis helps companies find new
areas of savings that previously went untapped, and hold on to
past areas of savings that they have already negotiated.

Automated spend analysis software can be a valuable tool

for chief procurement officers (CPOs) at large, global, diversified
enterprises, and a useful tool for many others.[1] The
resulting spend visibility helps CPOs and CFOs gain insight into
what their company buys and from whom, and it helps them
realize savings promised by past sourcing efforts. The original
approach to building spend cubes and the name "spend cube"
refers to the three dimensions of the cube - Suppliers, Corporate
business units, and Category of item. The contents in the cube
are the price and volume of items purchased. John Anderson
and Laura Boteler, of A.T. Kearney, Inc., developed the first
spend cubes to be used in strategic sourcing

Real Spend Management Begins

with Clear Spend Visibility
What could you accomplish if you no longer had to hunt
and gather spend data from here and there across your
company, only to then pull your hair out trying to make
sense of it all? Just imagine the impact you could have
with an aggregated and classified spend analysis of
company-wide purchases, one thats super-fast, loaded
with reliable supplier data, and available on-demand.

Thats what you get with Ariba Spend Visibility, the

leading cloud solution powered by SAP HANA and
enriched with supplier information from Dun &
Bradstreets Business Insights database (Learn more
about that). With it, you can make better, faster, and
more confident buying decisions, negotiating with
greater clout because youll know

your companys total combined spend,

intelligently classified

how much youre spending among families of

suppliers

where savings leak, prices vary, and purchasing

overlaps

which suppliers can help you achieve diversity

and sustainability

how your spend compares to that of your industry

peers

and more