Simple Spend Classification List

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    • #292511

      This SIG member is a regional commercial bank and is seeking a spend classification list as an alternative to UNSPSC. They require a simple 2-3 tier hierarchy. 

      If you think you can help, will you kindly email Mary Zampino at SIG ([email protected]) with a list of categories used to classify spend?  

      SIG will gladly scrub and remit for your approval any resources you share. Thank you in advance for your generosity. 

       

    • #295181

      This is a tool for your use provided by the Sourcing Industry Group. 

    • #295189

      You might want to check out the resources on the UK Government website – this is all in the public domain and gives some category headings which may be of use:

      https://www.gov.uk/government/publications/common-areas-of-spend-data-definitions

      Thanks Mike

    • #295190

      This is a tool for your use provided by the Sourcing Industry Group. Use this tool to help classify spend in the financial services category.

       

       

    • #295192

      This is a another tool for your use provided by the Sourcing Industry Group. 

    • #295193
      Anonymous
      Guest

      Perhaps dialing back from the tens of thousands of UNSPSC classifications to the much simpler SIC (Standard Industrial Classification) or NAICS (North American Industry Classification) with thousands of classifications would be a solution. It has the 3 tier hierarchy that they might be looking for.

    • #295194
      Anonymous
      Guest

      I would suggest contacting GEP to use their technology to classify spend.  We have a 4 tier structure customized to our specific spend.  Best investment we’ve made!  UNSPSC doesn’t work for us.

    • #295195
      Anonymous
      Guest

      UNSPSCs  consists of eight digits representing four hierarchical classifications, which consist of two-digits each. The classification are segment, family, class and commodity.

      UNSPSCs is now a globally accepted classification for products and services, it is crowd-sourced and relies on continuous input and feedback from members ( Governments as well as private sector) to keep the codes  up to date and current. 

      Kuali financial system ( KFS) has been adopted  by many  banks and hence  It will be advisable for the  fellow SIG member ( Regional commercial bank ) to follow UNSPSC.

      For ease of work, they can use MS excel worksheets, identify most commonly used UNSPSC for their purchases and create a custom list , such excel sheets can be created for a buyer / unit / department . 

      However following difficulties are seen while using UNSPSC classification.

      1)Classification not fully aligned with strategic sourcing.

      2)Rigid structure, where the spend categories may not align to need of individual organization.

      3)The granularity of details is often difficult for sourcing team to manage  and convey across all business units.

      Can only suggest banks’ sourcing team to use a hybrid model as mentioned below.

      1)Classify spend not by what a supplier does, but how procurement buys from them.

      2)Take feedback from various business units regarding their spend.

      The blend of above details will help to develop a taxonomy which is  business unit- specific vendor relationship.

       

    • #295196
      Anonymous
      Guest

      Spend categories depend mainly on Company’ objectives and vision, as  most of Mining Companies in emerging  countries (Sub Sahara) our main focus is to increase Local Procurement (Local Content) to align with politics requirement (In DRC we have a new sub-contracting Law whereas emphasis is put on buying goods and services from DRC citizens business owned). Not sure if this will help as per inquiry below, but lets me share some insights from my end,

      So  our spend graphic is a kind of quadrant that reflect :

      1.International spend

      2.Regional spend

      3.Local spend with Foreign owned entities

      4.Local spend with DRC owned business ( then in this category we have a split to reflect spend with Local Women owned business)

       

      Then in each category there is so many sub categories providing details on what, with whom and for how much we are spending on.

       

    • #295197
      Anonymous
      Guest

      I recommend you try the classification eCl@ss

      more by https://www.eclass.eu/en/index.html

       

    • #295198
      Anonymous
      Guest

      I would suggest that the bank exports the categories from their POs because purchase orders generally align with the categories of their spend.

      I.E. Information Technology – Software – Software as a Service – “title of the software ” such as Workday. 

      Fees – Labor – Contingent staffing  – “supplier name”

      Materials – Cleaning – Infection Prevention  – supplier name, i.e. Diversey 

       

    • #295199
      Anonymous
      Guest

      I realised it had an important question on product/inventory classification for purposes of e-commerce. Well personally I have not been involved in e-commerce as a professional buyer. So I am not familiar with these codes. But I believe they are related to Barcodes developed by GS1.  So you could check the GS1 standards.

      Otherwise the general approaches for classifying inventory for supply chain optimization purposes may be  four:

      1. Direct Inventory vs. Indirect Inventory

      2. Pareto classification or ABC analysis

      3. Finished goods vs subassemblies and WIP, raw material

      4. Food (edible) vs non-food

      The Kraljic supplier position model also helps to classify suppliers/items in in terms of the strategic significance to the organization.

       

    • #295200
      Anonymous
      Guest

      I am only aware of the UK National Health Service (NHS) classification, it includes UNSPSC mapping – copy attached.

      There is a searchable database at http://www.nhseclass.nhs.uk/home.mth

       

    • #295201
      Anonymous
      Guest

      Download this simple list and accompanying guidelines

    • #295202
      Anonymous
      Guest

      Have they looked at NAICS or GICS? 

    • #295203

      Here is another nice and simple list

    • #295204

      Here is a simple list:

      – Compensation

      – HR / Employee Relations Costs

      – Outplacement Fees

      – Recruiting

      – Training

      – Facilities

       — Rents

      – Operating Costs

       — Telephone

       — Postage

       — Delivery

       — Fax

       — Stationary & Supplies

       — Duplicating

       — Maintenance & Small Equipment

       — Information Services (IT)

       — Computer Operations

       — Social Functions

       — Taxes

       — Misc

      – Professional Expenses

      – Insurance

      – Partnership Administration

       

    • #295205

      Wow, the donations keep pouring in! Here’s another great example

    • #295206

      Another generous member offered this sample

    • #295207
      Anonymous
      Guest

      A simple list:

      ENTERPRISE SERVICES

      INFORMATION TECHNOLOGY

      MARKETING SERVICES

      OPERATIONS SERVICES

      PRODUCT SERVICES

      REAL ESTATE & FACILITIES

       

      TRAVEL & ENTERTAINMENT

       

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