What is a product classification?
A product classification is a structured system for organizing and categorizing products. It makes it possible to categorize product data into defined groups based on common characteristics or functions. This classification can be based on various criteria such as type, function, application or industry. Product classifications are essential for efficiently managing and analyzing product data, especially in large retail companies and with extensive product catalogs.
What are the benefits of a data classification concept for retailers and manufacturers?
The use of product classifications offers numerous advantages:
- Improved data quality: standardized classifications ensure that product data is recorded consistently and correctly, which increases data quality.
- Efficient product search and management: Products are easier to find and manage as they are clearly structured and categorized.
- Optimized logistics and warehousing: Precise classification facilitates warehouse management and logistics planning, as products can be quickly assigned and found.
- Better market analysis: Companies can better analyze and respond to market trends and needs if they clearly classify their products.
- Easier communication: A uniform language and structure in the product description improves communication between different departments and with partners.
- Compliance and standardization: Product classifications help to meet regulatory requirements and ensure compliance with standards.
What standard classifications are there?
There are several established standard classifications that are used in different industries
- ETIM (ElectroTechnical Information Model): An international standard for classifying technical products, particularly in the electrical and electronics sector. ETIM defines standardized characteristics and classes for technical products, which facilitates comparability and administration.
- eCl@ssA cross-industry classification standard that is used worldwide. eCl@ss covers a wide range of products and services and is used in many industries to structure product data.
- UNSPSC (United Nations Standard Products and Services Code): A global classification standard that categorizes products and services. UNSPSC is often used in procurement and supply chain management.
- GPC (Global Product Classification): A standard developed by GS1 that is used worldwide to classify consumer goods. GPC facilitates the exchange of product information along the supply chain.
What role do PIM systems play in product classification?
Product Information Management (PIM) systems play a central role in the management and classification of product data
- Central data management: PIM systems enable the central collection, management and updating of product data, which improves data consistency.
- Standard-compliant classification: PIM systems support common classification standards and facilitate compliance with these standards.
- Efficient data maintenance: Automated processes and validation rules allow data to be maintained faster and without errors.
- Multichannel publishing: PIM systems enable the consistent distribution of product information across different sales channels.
- Data integration: PIM systems can be integrated into other company systems, such as ERP (Enterprise Resource Planning) and CMS (Content Management System), which further improves data availability and quality.
How do you create a product classification?
Creating a product classification requires a systematic approach and thorough planning.
- Needs analysis: First, the needs should be analyzed. This includes understanding the company's goals, the industry and the specific requirements of the various departments and stakeholders.
- Definition of criteria: Based on the needs analysis, the criteria by which the products should be classified are determined. These can include function, material, application, industry, target group or other relevant characteristics.
- Creating a structure: A hierarchical structure is designed in which products are divided into main and sub-categories. This helps to organize the products logically and clearly.
- Definition of attributes: Specific attributes are defined for each category, which are used to describe and differentiate the products. These attributes should be standardized and consistent for all products within a category.
- Use of standards: It is advisable to use or follow existing classification standards such as ETIM, eCl@ss or UNSPSC to ensure compatibility and interoperability of product data.
- Implementation: The created classification is integrated into the existing systems, typically into a PIM system. Data maintenance and validation tools should be used to ensure the consistency and accuracy of the product data.
- Training and communication: Employees who work with product classification should be trained accordingly to ensure a uniform understanding and correct application.
- Continuous maintenance and optimization: Product classification is not a static system. It should be regularly reviewed and adapted to reflect changes in the market, product range or company objectives.
By taking these steps, an effective product classification can be created that not only facilitates internal administration, but also optimizes communication and data exchange with external partners.
Data classification - one of our core services
Conclusion
The classification of products is an indispensable tool for the efficient management of product data. Standardized classifications such as ETIM, eCl@ss and UNSPSC help to improve data quality and consistency and support companies in organizing and using their product information efficiently. PIM systems play a decisive role in this by enabling the central management and maintenance of product data and ensuring compliance with classification standards. PIM systems also facilitate the implementation of structured product classification and improve data availability and quality.
For retailers and manufacturers, the implementation of structured data classification offers numerous benefits, from optimized logistics to improved market analysis. Ultimately, well thought-out product classification makes a significant contribution to the success and competitiveness of a company.