Classification systems (also known as product group or product classifications) are used to categorise products and services in a structured manner using defined, hierarchically structured keys. In e-procurement, they form the basis for clear, cross-system and cross-manufacturer identification of materials. This makes them a central prerequisite for automated procurement processes as well as for reporting, spend analyses and compliance checks.

The PunchCommerce solution supports the transfer of classification codes between supplier shops and connected procurement systems such as SAP Ariba, SAP SRM, Coupa, Onventis or Mercateo. This ensures that the classification data is transferred correctly and consistently in the required exchange format (OCI or cXML).

Procurement systems use classification codes for the structured processing and evaluation of product and goods data. In particular, they support the following functions:

Automatic assignment of products to internal cost centres, G/L accounts or material groups on the basis of standardised classifications (e.g. UNSPSC or eCl@ss).
Approval workflows:** Control of approval processes depending on the product category or material group, for example for particularly cost-intensive or regulated goods.
Spend analyses and reporting:** Consolidated evaluation of procurement data across different suppliers using uniform classification standards.
Compliance checks:** Support in complying with legal and internal company requirements, for example in the area of hazardous substance management or export control.
Supplier comparability:** Ensuring the comparability of products from different suppliers through the use of identical classification codes.

Common classification systems

Various established standards are used in the classification environment, which are used to varying degrees depending on the industry, region and application. The following systems are among the most important in the context of purchasing, master data management and catalogue integration.

eCl@ss

eCl@ss is an international, cross-industry and ISO/IEC-compliant standard for classifying and describing products and services. It is particularly widespread in the DACH region, in industry and in the MRO environment and is used by many large companies.

Structure:** four-level hierarchical (segment, main group, group, subgroup), eight-digit numerical (e.g. 27-27-26-01)
Versioning:** regular releases (e.g. eCl@ss 12.0, 13.0, 14.0)
Special feature:** in addition to classes, standardised characteristics and values are also supported (eCl@ss Advanced)

UNSPSC

The United Nations Standard Products and Services Code (UNSPSC) is a globally recognised, cross-industry classification standard. It is frequently used, particularly in international procurement and in e-procurement platforms such as SAP Ariba.

Structure:** Four-level hierarchical, eight-digit numerical (Segment - Family - Class - Commodity)
Example:** 44121701 (biros)
Distribution:** established worldwide, available in several languages

ETIM

ETIM (Electro-Technical Information Model) is a leading classification standard for technical products, particularly in the fields of electrical engineering, plumbing, heating, air conditioning and construction.

Structure:** Classes with a unique ID (e.g. EC000123) as well as standardised features and characteristics
Versions:** e.g. ETIM 7, ETIM 8, ETIM 9 and ETIM MC (Modelling Classes for BIM)
Distribution:** widespread in Europe, particularly in Germany, the Netherlands and Scandinavia

proficl@ss

proficl@ss is a classification and master data standard for technical wholesale and the production connection trade (PVH). The focus is on product groups such as tools, C-parts, industrial safety and factory equipment.

Structure:** three-level hierarchical, six-digit numeric
Distribution: Mainly in technical specialised trade in the DACH region

GPC (Global Product Classification)

GPC is GS1's classification standard and is primarily used in the consumer goods sector (FMCG, food and near-food). It supplements GTIN/EAN-based identification with a standardised product group structure.

Structure:** Multi-level (segment, family, class, brick) with additional attributes
Example:** Brick code 10000045

CPV (Common Procurement Vocabulary)

The Common Procurement Vocabulary (CPV) is the official classification system of the European Union for public tenders and is used on a mandatory basis in EU procurement procedures.

Structure:** hierarchical, nine-digit (eight-digit code plus check digit)
Example:** 30192000-1 (office supplies)
Relevance:** Mandatory for contracting authorities in the EU area

NACE / WZ

NACE (or the German version WZ 2008) is a classification of economic sectors and not a product classification in the narrower sense. It is primarily used to categorise companies.

Use:** occasionally in the context of suppliers, not for the classification of articles

Classification in OCI

In OCI 4.0/5.0, the transfer takes place via the following fields:

Field	Description
`NEW_ITEM-MATGROUP[n]`	Classification code (material group) of the article
`NEW_ITEM-MATNR[n]`	Buyer's material number (if known)
`NEW_ITEM-VENDORMAT[n]`	Supplier material number

The format of the code (eCl@ss, UNSPSC, ...) is typically agreed between buyer and supplier and configured in PunchCommerce pro Connector.

Example:

NEW_ITEM-MATGROUP[1]=27272601

Important:

Field names must correspond exactly to the OCI standard (NEW_ITEM-...).
Indexing [1], [2], ... is mandatory
Classification is often only adopted if it is mapped in the target system

Classification in cXML

In cXML, the classification is transferred within the ItemOut or ItemDetail element as a Classification element. The domain attribute names the system used.

<ItemDetail>
    <Description xml:lang="en">Product description</Description>
    <UnitPrice>
        <Money currency="EUR">10.00</Money>
    </UnitPrice>

    <Classification domain="UNSPSC">43211503</Classification>
</ItemDetail>

Multiple classifications

<ItemDetail>
    <Classification domain="UNSPSC">43211503</Classification>
    <Classification domain="eCl@ss">19-02-01-01</Classification>
</ItemDetail>

Configuration in PunchCommerce

In practice, suppliers and purchasing companies often use different classification systems. In order to ensure consistent data processing, mapping between the respective systems is required.

Typical constellations are

Supplier classifies items according to eCl@ss, while the purchasing catalogue (e.g. SAP Ariba) expects UNSPSC
Supplier uses ETIM, while an internal material group is used in the target system
Public clients require the mandatory specification of CPV codes

PunchCommerce provides a mapping table per connector for this purpose.

OCI

A corresponding field mapping must be created for the connection to OCI. This determines which classification attributes are transferred to the OCI interface and how they are technically mapped. This ensures that the relevant data is transferred correctly and can be processed in the target system.

It is also necessary to create a new field for the material group (MATGROUP). This field is used for the structured assignment of materials within the classification. If necessary, a field for the material number (MATNR) can also be created if this information is required for further processing or identification.

**CXML

A separate field mapping can be defined for cXML in the same way as for the OCI connection. The configuration is also carried out via the menu item "Field mapping", where the corresponding assignments are maintained.

The fields "order_message.item.classification_type" and "order_message.item.classification" are available in the field mapping to transfer the classification information. These fields are used to transfer both the classification type and the actual classification values to the target system.

The corresponding assignment ensures that the classification data is provided correctly in cXML format and can be processed further.

Best practices

Use a standardised classification system for each buyer connector** Even if several classifications can be processed in parallel, a leading system (e.g. eCl@ss or UNSPSC) makes evaluation and reporting considerably easier.
Use the latest versions** Outdated versions of classification systems (e.g. eCl@ss or ETIM) often lead to mapping gaps. It is recommended to use at least eCl@ss 11 or ETIM 8 or higher.
Only use default codes selectively** The blanket use of default values can have a negative impact on data quality and in particular on spend analyses.
Check and update mapping regularly** Classification systems are continuously being developed. New or changed codes should be incorporated into the mapping promptly.
Use validation mechanisms** PunchCommerce offers the option of checking classification codes syntactically (e.g. with regard to length and character set) in order to recognise incorrect data at an early stage.