Data Classification Taxonomy Benefits of MRO Data Taxonomy

It is quite common for companies to request a mapping from UNSPSC to eCl@ss, or vice versa, since these two taxonomies are quite popular across industries. Managing and integrating product data efficiently and effectively across a broader range of companies in an upstream or downstream supply chain is possible when classifications are mapped accurately. Identifying the correct class for the material is essential in UNSPSC to eClass mapping, which is often done incorrectly by automated methods. It is crucial to analyze each material group intelligently before mapping to either classification system, to identify common description segments and patterns for synonymy. Accurate classification of parts provides visibility into the characteristics of a category, particularly the spend.

How uncontrolled Material Master Descriptions Harm Your Business Processes & What to do About it

Classification facilitates accurate spend analytics, so cost reduction and inventory optimization have direction on where to focus. Purchase classification also enables grouping and classification of suppliers, to improve strategic sourcing capabilities. Other parameters like inventory turns, reordering costs and inventory carrying costs can also be analyzed based on the category once the data is classified. Enventure also has very thorough understanding of industry standard MRO taxonomy, such as UNSPSC, eCl@ss and ECCMA ISO 8000 standard. For clients who prefer to align to such an industry standard, we provide taxonomy implementation and commodity coding services.

Master data excellence (MDE) is a strategic approach to managing master data in an organization. It can be used to drive better supplier transactions, improve operational efficiency, and reduce costs. Data classification is done based on a preselected taxonomy such as UNSPSC or eCl@ss, but it can also be done based on a custom taxonomy that is designed for a specific purpose. The Team at OptimizeMRO perform MRO data classifications utilizing Partlinq™, which is Enventure’s cloud-based platform with built-in libraries of classification codes, material descriptions and noun / noun-modifiers. The OptimizeMRO’s approach combines automated steps within the platform, as well as a domain expert review which ensures the classification is accurate and reliable. For asset-intensive organizations, the volume of MRO data increases every day, making it a challenge to manage data inside ERP, EAM / CMMS systems.

How should an Enterprise MRO Item Identity Taxonomy Work?

An additional 2-digit suffix indicates the business function identifier or other usage specific criteria (the 5th level). Integrating MRO catalogs with ERP and EAM systems improves operational efficiency by synchronizing inventory and procurement data across departments. A well-designed MRO material classification will not only classify the items but will also provide information about the item’s part number, supplier, date of purchase or manufacture, quantity on hand, and other pertinent information.

• This allows you to speed-up procurement and rationalize your MRO purchasing decisions and processes within your supply chain.
• For asset-intensive organizations, the volume of MRO data increases every day, making it a challenge to manage data inside ERP, EAM / CMMS systems.
• This table provides an example of one path from the top of the UNSPSC hierarchy to the lowest level.
• While these are good for off-the-shelf mechanical products, certain specialty parts may not get covered or key criteria for industry-specific classifications (such as surgical-grade or food-grade items) will not be available.
• Accurate and consistent product classification with well-structured product attribute data is the most critical element for the success of any MRO Master Data Management (MDM) program.

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• The adoption of an MRO taxonomy classifying inventory items and indirect materials, enables you to analyze inventory consumption through a single lens while taking better control of your MRO material procurement and inventory.
• Furthermore, we assist clients with implementing multiple classification systems or mapping items across classifications such as eCl@ss to UNSPSC or the other way around.
• See the potential impact on your business through improved data quality, leading to a strong business case for investment.
• Based on our own internal taxonomy, we also develop custom data taxonomy for clients if needed.
• My thought would be a noun modifier, followed by abbreviations (representing type, size, rating etc).

Over the years, we have developed a rich and comprehensive MRO data classification taxonomy (aka data dictionary), which covers over 5000 commodities, and is suitable for multiple industries. Based on our own internal taxonomy, we also develop custom data taxonomy for clients if needed. The MRO master data should be implemented in order to optimize processes, increase efficiency and improve decision making. MRO data excellence is a necessity for any company that wants to maintain a competitive edge. It provides a complete overview of the company’s MRO data and helps them to identify any gaps or inefficiencies. The first step towards achieving success with an MRO master data is to create strong single source of truth i.e., higher quality of material master data.

Benefits of Accurate MRO Cataloging:

But if the standard taxonomy does not suit a client, we can also customize the taxonomy to include the required commodity groups or add additional levels or attributes, as required by the Client to make it more comprehensive. The adoption of an MRO taxonomy classifying inventory items and indirect materials, enables you to analyze inventory consumption through a single lens while taking better control of your MRO material procurement and inventory. An effective MRO taxonomy also helps maintenance, procurement, and operations teams to manage materials based on their attributes and specifications, rather than just based on an SKU number.

Additionally, food grade-specific noun modifiers in the taxonomy make it easier to identify & standardize such MRO parts to leverage its impact on an overall Inventory Management System, Spend Analytics, optimized sourcing capabilities, and operational efficiencies. Master Data Management describes the process of enriching, classifying and standardizing the MRO material master data that is crucial to supply chain and the organisation. Given there are multiple classification taxonomies in use, many organizations now seek code cross-referencing or mapping from one taxonomy to the other. Mapping the equivalent code of one type of classification to another is called cross-referencing of data classification, and mapping of UNSPSC to eCl@ss or vice versa would be a good example. Structured material data will make the implementation much easier by automatically mapping fields as per the ERP or EAM/CMMS system requirements and ensuring consistency of the data within the new system. Data that follows a good taxonomy improves the searchability of materials, as well as enhances functionality available in the system, such as spend analytics and reporting.

Data quality is largely a factor of what rules have been defined for creating new records and what systems have been put in place for adherence to those rules. Most companies struggle mro material taxonomy due to a deficiency in one or both of these, which leads to data elements like item descriptions or data classification taxonomy become subjective and prone to inconsistencies or errors. We also help clients implement multiple classification systems, or map their items across different classifications such as eCl@ss to UNSPSC or vice versa. This paper discusses the requirements to achieve and the pros and cons of using an externally provided or an internally developed MRO identity standard. Note, the concept of standardized comparable MRO identities is not achieved by simple “data cleansing” without use of an explicit taxonomy. OptimizeMRO has an exhaustive readymade taxonomy, covering over 6000 commodities and multiple industries.

How OptimizeMRO enables MRO Data Excellence!

Executives often struggle to gain insights into purchase inefficiencies, and the root cause analysis mostly leads to poor Material classification and analytics. A well-classified materials database can dramatically improve analytics, which then enables you to derive supplier intelligence, identify focus areas to reduce costs, gain insights into inventory movements and so on. Our user-friendly interface makes it easy for you to organize, review, and update your MRO master with confidence.Our tool is crafted to meet the unique needs of businesses seeking to improve their data accuracy and reliability. By using Flow, you’ll be able to maintain a consistent and high-quality MRO database, enabling smoother operations and better decision-making.Experience the benefits of a well-organized and easily accessible MRO catalog. Let Flow be your partner in achieving data excellence and operational efficiency.Explore the capabilities of Flow today and take the first step toward transforming your data management processes. While these are good for off-the-shelf mechanical products, certain specialty parts may not get covered or key criteria for industry-specific classifications (such as surgical-grade or food-grade items) will not be available.