When managing Product Master Data Management (MDM) and Product Information Management (PIM), product classification perhaps the most important aspect. More than often is companies neglecting adapting to external classification standards, and placing their focus on Implementing internal classifications, such as product groupings and hierarchy structures.
Five External Standards to rule them all
In this post i am going to point attention to some of the external standards I have come across. double clicking on some of standards you may notice that they are actually competing against each other in the way they represent themselves.
The United Nations Standard Products and Services Code® (UNSPSC®), overseen by GS1 US™ on behalf of the UN Development Programme (UNDP), is a globally recognized, open classification standard for products and services across multiple industries. It is commonly used in public tenders and various marketplaces.
GS1 has developed the Global Product Classification (GPC) as a separate standard within its Global Data Synchronization Network (GDSN) to provide a consistent and structured way to categorize products. GPC enables seamless data synchronization between trading partners, ensuring accurate and standardized product information across global supply chains.
Commodity Codes / Harmonized System (HS) Codes
Commodity codes, which are increasingly being harmonized worldwide, serve as the primary classification system in international trade. These codes play a crucial role in determining customs duties, import and export regulations, trade restrictions, and necessary documentation requirements. They help standardize product classification across countries, facilitating smoother cross-border transactions. Additionally, national statistical bureaus often require businesses engaged in foreign trade to use these codes for reporting and compliance purposes, ensuring accurate trade data collection and regulatory oversight.
eCl@ss is a cross-industry standard for the classification and description of products and services, designed to ensure consistency and interoperability across various sectors. It is recognized both nationally and internationally as an ISO/IEC-compliant industry standard, making it a widely accepted framework for structuring product data.
The eCl@ss standard not only categorizes products but also defines the essential product attributes; referred to as properties within eCl@ss; that are required for a given classification. By providing a structured and standardized way to describe product characteristics, eCl@ss enhances data quality, supports digital procurement, facilitates seamless data exchange, and improves supply chain efficiency. It is commonly used in ERP systems, electronic catalogs, and e-commerce platforms to enable precise product identification and comparison.
ETIM develops and maintains a globally standardized classification system for technical products, ensuring uniformity across industries such as electrical, mechanical, construction, and HVAC (heating, ventilation, and air conditioning) sectors. This standardized system enhances product data exchange, enabling seamless integration into ERP systems, procurement platforms, and digital catalogs.
At the core of ETIM is a structured classification model that defines product categories and their corresponding attributes; referred to as features in ETIM. These features specify the essential technical characteristics required for a product within a given classification, ensuring precise and unambiguous product descriptions. By providing a common language for manufacturers, distributors, and buyers, ETIM supports digitalization, e-commerce, regulatory compliance, and data quality improvement in the global supply chain.
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