July 22, 2009

IDW Hot Fact: Using Seller Class Codes for Product Categorization


What are Seller Class Codes and Seller Sub-Class Codes?

Seller Class Codes and Seller Sub-Class Codes in the Industry Data Warehouse (IDW) are manufacturer-specific product categorization codes used for a multitude of processes within the manufacturer and distributor business system. Seller Class Codes should be used for broad product categories and Seller Sub-Class Codes should funnel the broad categories into more narrow categories. For example, the Seller Class Code for “building wire” could have Sub-Class Codes for “stranded”, “solid” and “multi-conductor” products. Refer to image below for an example within IDW.

An example of how a manufacturer should store product category codes and descriptions in IDW

Why are Seller Class Codes and descriptions essential in IDW?

These categorization codes are used by manufacturers to group similar products for discounting, authorizing distributors, sales reports, routing support inquiries and other business requirements. Distributors use them for website drill-down searches, catalog table of contents, sales promotions and various forms of data analysis. They can also be used in conjunction with a manufacturer’s pre-established pricing discount matrices to determine Net Price.

Manufacturers should provide Seller Class Codes and Sub-Class Codes to IDW in conjunction with meaningful descriptions that can be interpreted by trading partners. A description translates the code into terms that are understood and useful to a trading partner’s business processes. The use of at least one Seller Class Code is mandatory in IDW.

These codes are essential to the future of eCommerce. IDEA will use these manufacturer-specific codes and descriptions to apply UNSPSC (United Nations Standard Products and Services Codes) in IDW. UNSPSC are industry-specific codes based upon a global schema established by the United Nations. UNSPSC provides a single classification system that can be used for company-wide visibility of spend analysis, cost-effective procurement optimization and full exploitation of eCommerce capabilities. These product category codes will be recognized throughout the world for all business transactions and the combination of UNSPSC and Seller Class Codes at the item level create valuable tools for data analysis. The UNSPSC field in IDW will become mandatory in IDW on 1/1/2010.

Who should I contact to help populate my company’s Seller Class Codes and descriptions?

Contact your account manager if you are unsure of where your product category codes are located in your business system or if you need help to ensure your Seller Class Codes and descriptions are accurate and complete in IDW.

Ready to provide your product category codes? Please provide the data via Excel or csv file and email to jgiven@idea-esolutions.com.

Posted in , ,