UNSPSC coding is great for numerous industries, but it seems that there is a void in the coding structure when it comes to large financial institutions. I recently held discussions with several directors of sourcing from large insurance and finance companies while speaking about spend analysis. In each conversation it has come to light that the coding is great for a lot of commodities, but doesn’t address the unique services aspect of their spend.
So how do they accurately classify their spend when UNSPSC isn’t adequate? As all animals do in the world, they adapt and evolve out of necessity. They have created a hybrid of UNSPSC that includes the strong elements of what UNSPSC coding classifies well and included additional coding that relates specifically to their unique services spend.
UNSPSC coding is a strong coding system. However, companies should not be afraid to add to coding structures to meet their needs. Visibility into your spend is only as good as a desired taxonomy’s ability to accurately reflect the nature of your data.
A strong Spend Analysis solution will be able to handle not only classifying to UNSPSC, but also any internal structure as well. A spend analysis solution should be as flexible and scalable as the company it’s doing the work for.