The United Nations Standard Products and Services Code is a classification convention that is used to numerically identify products and services.
It is an efficient, accurate and flexible classification system for achieving company-wide visibility of spend analysis, as well as, enabling procurement to deliver on cost-effectiveness demands and allowing full exploitation of electronic commerce capabilities.
The UNSPSC™ is a hierarchical classification with five levels. These levels allow you to drill down or up to analyze expenditures at the level relevant to your needs. For example, the commodity “Ink refill” is part of a class of products “Ink and lead refills”, which in turn is part of a family of products “Office supplies”. Multiple families—like “Office supply”—compose a segment of products, “Office Equipment and Accessories and Supplies”. Each level in the hierarchy has its own unique number.
Hierarchy Category Number and Name
Segment 44 Office Equipment, Accessories and Supplies
Family 12 Office supplies
Class 19 Ink and lead refills
Commodity 03 Pen refills
“Pen refills” = UNSPSC classification 44-12-19-03.
The fifth level identifies the Business Function such as Rental or Lease, Maintenance or Repair etc.