A common language is a first step towards communication across cultural boundaries.
– Ethan Zuckerman
Commodity codes are standardized taxonomies used to categorize goods and services into distinct families. They are used to identify, manage and optimize goods and services usage inside organizations. In addition, they serve as a common language when communicating about goods and services with external parties. To draw a parallel, libraries categorize books using the Dewey decimal system to better navigate their collections. They can also better understand the collections of other libraries using this same system. Similarly, by using commodity codes you gain a better understanding of what goods and services a company is using without needing to understand the line item detail.
This page groups together all blog posts that touch on commodity code management.
Note: This post is the transcript of the episode. If you prefer listening to audio, you can listen to the episode on the podcast page. On the last episode, we explored the criticality of vendor data for Source-to-Pay system benefits realization. On this episode, we widen our focus to see how you can quickly get value from the spend data you currently […]
I was recently asked about my take on how to configure material/system commodity codes in ERP/Procurement systems. Here are my main takeaways from multiple implementations of a set of commodity codes. When implementing a new Source-to-Pay solution, you can usually either put in your own hierarchy or use a standard nomenclature such as the United […]