Item classification is a system that aims to organize data according to its characteristics and purposes. There are several ways to classify your data, and the choice of classification system may vary depending on the objective and perspective required for your management (financial, purchasing, tax, inventory, etc.).

Some common material classification examples include:

1. ABC Classification: Divides materials into three categories based on their financial value or use/movement, where Category A includes the most expensive or most frequently used materials and Category C includes the least valuable or least frequently used materials. This grouping is typically applied to inventory items, such as those that are moved, and can be used to physically organize, control, and inventory items in the warehouse.

2. Classification by groups: organizes materials into groups according to their purpose or function, such as office supplies, cleaning supplies, protective equipment, among others.

3. Classification by families: groups materials according to their common characteristics or properties, such as electrical materials, mechanical materials, chemical materials, among others.

4. Classification by life cycle: organizes materials into phases of the product life cycle, from raw material to final disposal, including production, use and disposal.

5. Classification by compatibility: classifies materials according to their compatibility with other materials, especially in chemical or manufacturing processes.

Remember that the choice of material classification should be based on the specific needs of the company and the sector in which it operates, always seeking a clear and efficient organization of materials.

When it comes to classification by groups, their structures are usually guided by the function or application of the items, and thus some Categorization standards were created with international use objectives, the most common of which are:

1. UNSPSC (United Nations Products and Services Classification): is a global product and service classification system used by businesses and governments worldwide. UNSPSC has a set of codes that cover various categories of products and services, including indirect materials.

2. eClass (Electronic Classification): is a product and service classification system based on a hierarchical structure of levels and sublevels. eClass was developed in Europe and is widely used by companies in the industrial sector.

3. ECCMA (Electronic Asset Control and Management Association): is an international association that promotes the use of data standards for asset management. ECCMA has developed a Global Material Classification (GMCL) that covers various sectors and material types.

4. GPC (Global Product Classification): This is a product classification developed by GS1, a global standards organization. The GPC has a set of codes that cover various product categories, including indirect materials.

5. Federal Supply: This classification follows the North American system known as FSC (Federal Supply Classification). Developed by the United States Department of Defense, its purpose is to categorize all materials handled by government agencies. Each item receives a unique identification code, called a Federal Stock Number (FSN).

It is important to emphasize that the choice of the classification standard for materials and services must be based on the specific needs of the company and the sector in which it operates, as well as the desired objective.

We at CH can help you choose the most suitable pattern, as well as associate your items with the defined structure.