Spend Category

Goods or services with similar characteristics that are grouped together for planning and management purposes. For instance, furniture could be a spend category for a business, and have sub categories consisting of the desks, chairs, tables and cabinets purchased by the company during the year. Some organizations classify spend using their own unique categories, others rely on more standard taxonomies like the United Nations Standard Products and Services CodeÆ (UNSPSCÆ) or the North American Industry Classification System (NAICS). A discussion of various methods for creating spend categories and classifying spend and suppliers according to those categories can be found in this SIG Member Peer2Peer Discussion here: http://www.sig.org/p2p-specific.php?id=144

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