MRO Data Cleansing & Classification for a Shipping Contractor: 197K Items Classified with 100% Commodity-Level Accuracy

100%

Accuracy in Commodity-Level Classification

15%

Improvement in Inventory Visibility

25%

Reduction in Procurement Lead Time

Service

  • MRO Master Data Management
  • Data Cleansing
  • Data Classification

Client Overview

Shipping Sector Contractor Specializing in Engineering & Construction Solutions

Established in 1985 and based in Switzerland, our client is a global leader in delivering engineering, infrastructure, and maintenance-related services for the shipping sector. Their core competencies include retrofitting, repairing, and maintaining marine vessels and port infrastructure.

Scope of Work

Multi-Category Classification for 197K Shipping-Related Items

The assignment involved classifying 197,000 shipping-industry items, requiring professionals skilled in UNSPSC categorization, data processing, and advanced Excel skills. The inventory included mechanical parts, navigation tools, ship-repair equipment, communication devices, and other small parts/accessories.

Project deliverables included:

  • Phase 1: Cleansing & classification of 100K shipping components and parts.
  • Product data enrichment and cleansing by filling gaps, correcting errors, and updating specifications for precise categorization.
  • Advanced proficiency in UNSPSC standards for efficiently categorizing MRO equipment.
  • Deployment of 4 specialists trained in MRO operations for accurate, timely classification of items.
  • Phase 2: Classification of an additional 97,000 items by the trained team.

Project Challenges

Managing High-Precision Classification Needs Under Tight Deadlines

The project was defined by three critical constraints:

  • All 197,000 items had to be classified within 3 months.
  • Four resources required intensive training in marine, industrial, and mechanical products & services for classification accuracy.
  • Each item required commodity-level classification, thus leaving no room for broad or generalized categorization.

Our Approach

Comprehensive MRO Data Cleansing, Classification, and Quality Control for Accurate Inventory Management

To address project challenges, a structured MRO data classification approach was adopted. The following steps ensured compliance with the client’s requirements:

MRO Data Enrichment & Cleansing

Before classification, the data was cleansed and enriched for improved accuracy and quality. The process involved:

  • Enriching data with the recent attributes.
  • Correcting discrepancies (e.g., incorrect descriptions, missing part numbers).
  • Standardizing data to make sure all entries are consistent.

Outcome: Final classification was based on clean, accurate, and standardized data.

Item Description Review

The next step was a detailed review of every item description. The following steps were taken:

  • Reviewing the given item descriptions to understand the type of product and related classification.
  • Ensuring the description aligned with the item’s characteristics, specifications, and usage in MRO.

Outcome: Enabled the assignment of products to the right categories.

UNSPSC Classification

Each item was assigned a distinct United Nations Standard Products and Services Code or UNSPSC, depending upon its type and intended use. The process included:

  • Identifying and categorizing key components, such as navigation tools and ship repair equipment, to ensure accurate classification.
  • Mapping every MRO part to the correct UNSPSC category, ensuring alignment with industry norms.

Outcome: This classification created a structured system for managing items and enabling easy retrieval.

Unit of Measure or (UOM) Assignment

During the UNSPSC code assignment, we took special care to select the correct UOM for every item. This was crucial to accurate classification, as the UOM determined how items were categorized in the UNSPSC system. For instance:

  • Items such as fasteners, mechanical parts, and seals were under “pieces.”
  • Larger items, such as propellers, navigation systems, and ship engines, were grouped as “sets” or “units”.

Outcome: Detailed UOM assignment ensured proper categorization, improving inventory management efficiency.

Classification at The Commodity Level

To meet the project's strict requirements, every item was required to be classified with high precision at the commodity level. The workflow consisted of:

  • Avoiding general categories like “marine equipment” or “mechanical parts”.
  • Categorizing items into specific subcategories, such as "engine components," “mooring equipment”, "hull fittings," and "marine pumps."
  • Ensuring that each item was classified according to its precise function and role within the shipping industry.

Outcome: This granular classification improved inventory tracking and management, allowing the client to efficiently identify and handle critical MRO parts and shipping components.

Multi-Tiered Quality Control (QC)

A multi-stage QC procedure was established to ensure the accuracy of each item classification and data integrity:

  • Step 1: Self-Audit: Quality control was performed by the resource responsible for the classification.
  • Step 2: Supervisor/ATL Review: Supervisors or team leaders conducted a secondary review to catch any inconsistencies early.
  • Step 3: Managerial Spot-Checks: Account managers would conduct random audits to ensure the overall classification was accurate and met the required standards.

Project Outcomes

Transforming Operations Through Data Classification Excellence

Metric Pre-Project State Post-Project Results
Total Items Classified 0 197,000
Items classified
Accuracy at Commodity Stage General Categorization 100%
Accuracy in commodity-based classification
Inventory Visibility Limited Visibility 16%
Lesser part misplacements, directly improving asset tracking
Procurement Lead Time Long Procurement Cycles 26%
Improvement in Procurement Efficiency

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