The precise classification of product data ensures that products are labeled with a unique identifier (ID). As a result, product data will be sorted into a uniform group structure. For example, to compare them with other products. Furthermore, with the help of product data classification, a product can be clearly described by characteristics to enable quick searches via product properties. Last but not least, product data classification also improves findability in online stores or e-Commerce platforms because a classified product is automatically enriched with synonyms. For example, a classified “pipe wrench” is also found when the terms “plumber’s wrench” or “grab wrench” are searched for.
This classified product information is usually exchanged between manufacturers, suppliers, distributors, and procurement departments.
In industrial companies, the classification of product data is often initiated by the sales, marketing, or product management departments.
Especially enterprise companies have been driving change and putting pressure on small and medium-sized manufacturers to handle business processes digitally. Concluding, that it is not enough to only label articles using barcodes: Customers expect data to be uniquely specified and classified. If the company does not have the ability to deliver the product information in a uniform and standardized format, it risks losing sales opportunities or even clients who source their products from companies who offer electronic catalogs.