Taxonomy is a comprehensive standard set of commodity categories with a clear definition of Noun Modifier(s) along with associated attributes arranged in a sequence to enable effective material cataloging.
Organizations today face increasing procurement costs, and even penalties due to non-compliance of material, that result from ‘MRO Taxonomy’ issues. Let’s take for example, a parallel between the taxonomy for the food industry vs generic taxonomy. Typically, in the food manufacturing industry food grade material or lubricant is vital; because the generic MRO part may contaminate the food during handling or manufacturing.
Here is an example of Taxonomy for Normal vs Food Grade materials.
|VALVE, CHECK||10||VALVE SIZE/CONNECTION||Yes|
|VALVE, CHECK||20||BODY/DISC MATERIAL||Yes|
|VALVE, CHECK||30||PRESSURE RATING/CLASS||Yes|
|VALVE, CHECK||40||FLOW RATE||No|
|VALVE, CHECK||80||TEMPERATURE RATING||No|
|VALVE, CHECK, SANITARY||10||VALVE SIZE/CONNECTION||Yes|
|VALVE, CHECK, SANITARY||20||BODY/DISC MATERIAL||Yes|
|VALVE, CHECK, SANITARY||30||PRESSURE RATING/CLASS||Yes|
|VALVE, CHECK, SANITARY||40||TRIM||Yes|
|VALVE, CHECK, SANITARY||50||SOFTGOODS||Yes|
|VALVE, CHECK, SANITARY||60||APPLICATION||Yes|
|VALVE, CHECK, SANITARY||70||TYPE||No|
|VALVE, CHECK, SANITARY||80||FLOW RATE||No|
|VALVE, CHECK, SANITARY||90||TEMPERATURE RATING||No|
|VALVE, CHECK, SANITARY||100||DIMENSIONS||No|
|VALVE, CHECK, SANITARY||110||STANDARDS/COMPLIANCE||No|
Based on the different taxonomies, here is an example of how the same item’s description varies in order to meet business needs:
|Example of item description based on the Generic Taxonomy|
|Short description: VALVE,CHECK:1-1/2IN,SS 316,150PSI,1-Way|
|Long description: VALVE, CHECK: VALVE SIZE/CONNECTION 1-1/2IN, BODY/DISC MATERIAL SS 316, PRESSURE RATING/CLASS 150 PSI, TYPE 1-Way; Spring Loaded, SOFTGOODS PTFE Seal, TEMPERATURE RATING 400 DEG F, DIMENSIONS 2 OD x 3-3/4IN L Flange, APPLICATION Food and Beverage|
|Example of item description based on the Food Industry Taxonomy|
|Short description: VALVE, CHECK, SANITARY:1-1/2IN,SS 316,150P|
|Long description: VALVE, CHECK, SANITARY: VALVE SIZE/CONNECTION 1-1/2IN, BODY/DISC MATERIAL SS 316, PRESSURE RATING/CLASS 150 PSI, SOFTGOODS PTFE Seal, APPLICATION Food and Beverage, TYPE 1-Way; Spring Loaded, TEMPERATURE RATING 400 DEG F, DIMENSIONS 2 OD x 3-3/4IN L Flange|
It is imperative for all food processing businesses to manage their taxonomy so as to indicate the food grade specific Noun Modifier(s) with detailed attributes. This also helps in segregating food grade and non-food grade MRO parts in the inventory. A generic taxonomy cannot be used for all food grade MRO parts, since the required/mandatory attributes may be different for a non-food grade spare part. Since the short description of a spare part is generated based on the noun modifiers and top mandatory attributes, the sequencing of such attributes is also critical.
Additionally, food grade-specific noun modifiers in the taxonomy make it easier to identify & standardize such MRO parts to leverage its impact on an overall Inventory Management System, Spend Analytics, optimized sourcing capabilities, and operational efficiencies.
At Enventure, we design industry-specific taxonomy and develop cataloging for clients across the globe, cutting across different industries such as pharma, life sciences, food and beverage, mining, oil and gas, power and multiple other process industries.