UNSPSC, eCl@ss, and NATO Codification System: Classification Standards in Material Cataloguing

Introduction: Why Classification Matters in Cataloguing

In the industrial world—especially within sectors heavily reliant on spare parts and materials such as manufacturing, energy, and defense—material data is more than just recordkeeping. It forms the backbone of supply chain efficiency, cost control, and informed decision-making.

However, one persistent challenge for operations and logistics teams is inconsistent material classification. Different naming conventions, unsynchronized coding systems, and unstructured categorization often lead to item duplication, inventory mismanagement, and operational waste.

To address these challenges, organizations adopt globally recognized classification standards in their material cataloguing processes. Three of the most widely implemented classification systems are:

1. UNSPSC – United Nations Standard Products and Services Code
2. eCl@ss
3. NATO Codification System (NCS)
   
   

Each of these frameworks brings a different approach and purpose, but all aim to help organizations manage materials systematically, consistently, and in a format ready for integration with ERP or e-Procurement systems.

What Are Classification Systems in Cataloguing?

A material classification system is a structured taxonomy used to categorize products and services logically and hierarchically. The benefits include:

• Standardized material descriptions
• Improved master data accuracy
• Easier integration with ERP and procurement systems
• Enhanced reporting and analytics
• Greater interoperability across departments or organizations

1. UNSPSC – United Nations Standard Products and Services Code

What Is UNSPSC?

UNSPSC is a global, open classification system developed by the United Nations and Dun & Bradstreet. It is widely used across business and government sectors for categorizing products and services.

Code Structure:

UNSPSC uses an 8-digit structure (optionally extended to 10 digits), divided into:

• Segment (xx000000)
• Family (xxxx0000)
• Class (xxxxxx00)
• Commodity (xxxxxxxx)
  
  

Example:
26121607 – "Lead acid batteries"

Strengths:

• Free and publicly accessible
• Widely adopted in e-Procurement systems (SAP Ariba, Oracle)
• Suitable for high-level categorization
  
  

Limitations:

• Limited depth for technical product description
• Not attribute-based
  
  

Use Case:

Multinational companies use UNSPSC to categorize spending and streamline procurement analysis across diverse product lines.

2. eCl@ss – European Technical Classification Standard

What Is eCl@ss?

eCl@ss is an attribute-based classification system widely used in Europe. It enables detailed categorization not only by name but also by technical specifications and properties.

Code Structure:

eCl@ss follows a hierarchical structure:

• Main Group
• Group
• Subgroup
• Product Class (4-digit code)
• Attributes & Values
  
  

Example:
27-14-06-01 – “Electric Motors”

• Attributes: Voltage, Power, RPM, Type
  
  

Strengths:

• Highly detailed and attribute-based
• Ideal for automated procurement and technical environments
• Excellent for industry-specific item cataloguing
  
  

Limitations:

• Requires paid license for full access
• Complex initial implementation
  
  

Use Case:

Perfect for manufacturers or engineering firms managing technically complex items such as sensors, motors, or electrical components.

3. NATO Codification System (NCS)

What Is NCS?

The NATO Codification System is used by NATO member and partner nations to standardize the identification of military spare parts and logistical items. Its core is the NATO Stock Number (NSN).

Code Structure:

NSN is a 13-digit number structured as:

• 4-digit Federal Supply Class (FSC)
• 2-digit NATO Country Code (NCC)
• 7-digit Item Identification Number (IIN)
  
  

Example:
5999-00-123-4567

Strengths:

• Suitable for high-scale logistics and defense
• Allows interoperability across nations and system
• Highly validated and controlled item data
  
  

Limitations:

• Primarily for government and defense use
• Limited access to full databases
  
  

Use Case:

Used extensively for managing spare parts in military vehicles, ammunition, communication tools, and complex defense logistics. Some heavy industries like mining and oil & gas also adopt NCS for critical part standardization.

Comparative Overview

Which Classification System Should You Use?

• Choose UNSPSC if you need high-level categorization for procurement analytics or general services classification.
• Choose eCl@ss if you require technical detail for each item, especially for MRO, OEM, or engineering environments.
• Choose NATO Codification System if you work in defense, aerospace, or heavy industry with strict logistics and interoperability standards.

Implementation in Panemu’s Material Cataloguing System

At Panemu, we offer a flexible approach to classification based on your organization's:

• Operational complexity and geographic scope
• Nature of materials (technical vs. consumable)
• ERP system architecture (SAP, Oracle, Maximo, etc.)
  
  

Our cataloguing solutions include:

• Material classification mapping
• Data cleansing and deduplication
• Attribute enrichment
• Integration into ERP or inventory platforms
  
  

Business Impact of Proper Classification

Material classification is more than an administrative task. When implemented correctly, it delivers tangible business value:

• Operational efficiency and faster part retrieval
  
  
• Inventory accuracy and reduced carrying cost
  
  
• Compliance with global and industry standards
  
  
• Better procurement decision-making through analytics
  
  
• Cost savings through improved spend visibility
  
  

A Deloitte study found that companies adopting structured material classification reduced MRO procurement costs by 10–15% and improved data accuracy by over 80% within a year.

Conclusion: Classification Is the Foundation of Modern Material Management

Material cataloguing is not just about naming an item—it’s about building a robust, structured data environment that empowers decision-makers and streamlines operations. Whether through UNSPSC, eCl@ss, or NATO Codification, selecting and applying the right system is a strategic move in your asset and inventory management journey.

Remember: Clean data begins with smart classification.

With the right tools, taxonomy, and governance, your organization is better equipped to navigate the complexities of digital supply chain management.

Need Expert Support?

Panemu offers end-to-end solutions for implementing classification systems tailored to your industry. From data audits and taxonomy design to catalog transformation and system integration—we’re ready to help you turn data chaos into operational clarity.

Book a free assessment session with our cataloguing experts and start building your intelligent material database today.