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The United Nations Standard Products and Services Code (UNSPSC) is a globally used classification system for products and services.

It offers a standardized structure that enables efficient data exchange, particularly in procurement and e-commerce. It helps suppliers and customers communicate using standard definitions and streamlines data management. Categorization contributes to improved efficiency and reduced errors and enables better decision-making by organizing data, which can streamline processes and support automation.

UNSPSC uses a four-level hierarchy for classification, with a fifth optional level, to identify products and services with detailed precision:

You can find more information on the official UNSPSC website.

The UNSPSC classification is a common language in B2B communication that identifies to which class products and services belong. It supports capabilities for detailed insights into transactions, stock levels, and control in internal processes, such as procurement and spend analytics. The UNSPSC taxonomy and its classes can be included in various transaction-related business records, purchase orders, invoices, catalogs, and other electronic documents.

By adopting UNSPSC across your procurement, finance, and business processes, your organization and all stakeholders in the supply chain will experience significant benefits.

For procurement teams, UNSPSC’s detailed commodity codes enable more efficient tracking of spending on various products and services. This allows for more accurate procurement analysis, reducing the time and effort needed to search for products across suppliers, exchanges, and business partners. Additionally, UNSPSC codes support detailed spend analysis, helping organizations identify purchasing patterns across departments or business units. This information can be used to negotiate better terms with suppliers and generate cost savings.

For finance teams, UNSPSC codes enhance accounting processes by improving record accuracy, automating workflows, and enabling more precise financial reporting.

Using UNSPSC codes, sales teams can monitor sales channels and distribution to the end consumer. This enables faster market intelligence gathering and more accurate sales analysis. UNSPSC also allows sales teams to expand their reach by publishing e-catalogs, registering with search engines, and using third-party marketplaces, providing access to global customers.

Marketing teams can leverage UNSPSC codes for quicker access to field data, aiding in market research, product development, and sales analysis. This can lead to improved customer satisfaction and increased revenue.

Qvalia uses a proprietary, latest-generation LLM-based AI model for data enrichment that is singularly trained on transactional data. The model is hosted in an encrypted, safeguarded, and isolated environment. Other use cases include line-item PDF and image recognition, format transformation, content validation, spend analytics, and GHG data.

Read more about Qvalia’s work on IT security.

Yes, customers can access instant line-item UNSPSC classification via API.

For more information, contact us.

Qvalia can categorize line items using other code systems, such as CPV (Common Procurement Vocabulary).

UNSPSC is supported in all Peppol transactions through the item classification code field.

For further details, please refer to the official Peppol documentation.