Client Success Story

Efficient MRO Data Classification & Cleansing for Shipping Operations - Achieving 100% Accuracy in Categorizing Over 196,000 Items

196,000

MRO Items
Classified Within
Stipulated Time

15%

Improvement
in Inventory
Visibility

25%

Reduction in Procurement
Lead Time

Service

  • MRO Data Classification
  • MRO Data Cleansing

Platforms

  • MS Excel
  • MS SQL
The client

Leading Contractor Delivering Engineering and Construction Solutions for the Shipping Industry

Founded in 1985 and headquartered in Switzerland, the client is a leading contractor specializing in engineering, maintenance, and infrastructure solutions for the shipping industry. The company focuses on the repair, retrofit, and maintenance of ships and marine equipment, providing comprehensive services for complex maritime projects. Operating globally, the client delivers solutions in the commercial shipping sector, including fleet management and port infrastructure.

PROJECT REQUIREMENTS

Classification of Shipping Items Across Multiple Categories

The project involved the classification of a total of 196,000 items related to shipping infrastructure. It required skilled resources proficient in data processing, advanced Excel, and UNSPSC categorization. The primary focus was on mechanical parts, ship repair equipment, navigation tools, communication equipment, and small accessories/parts.

Key requirements for the project included:

  • Classification of 100,000 parts items and shipping components in phase 1.
  • Cleansing and enrichment of product data by correcting errors, filling missing details, and updating product specifications to ensure accurate categorization.
  • Expertise in UNSPSC classification and advanced Excel skills to ensure efficient categorization of MRO parts and equipment.
  • A total of 4 trained and experienced resources in MRO operations to ensure the accurate and timely classification of the items.
  • In phase 2, an additional classification of 96,000 items by trained resources.
PROJECT CHALLENGES

Addressing Tight Timelines and Complex Classification Requirements

The project faced several challenges due to tight timelines, complex product categories, and strict quality requirements. The key challenges included:

  • Short Delivery Deadlines: The entire classification needed to be completed within just 2 months and 15 days.
  • Resource Training: Four resources needed to be trained with maximum knowledge of industrial, marine, and mechanical products and services to handle the classification accurately.
  • Strict Commodity-Level Classification: Every item had to be classified precisely at the commodity level, leaving no scope for general or high-level categorization.
OUR SOLUTION

Efficient MRO Classification & Cleansing for Better Shipping Inventory Management and Procurement

To address the challenges faced in this project, we implemented a systematic approach to MRO data classification for the shipping industry. The following steps were taken to guarantee successful classification and meet the client's requirements:

1

MRO Data Cleansing & Enrichment

Prior to classification, the product data was cleansed and enriched to ensure its quality and accuracy. This involved identifying and correcting discrepancies (e.g., missing part numbers, incorrect descriptions), enriching the data with the latest product attributes, and standardizing it to ensure consistency across all entries. This process ensured that the final classification was based on clean, accurate, and standardized data.

2

Item Description Analysis

The next step in the classification process was a thorough review of the provided item descriptions. This step was crucial in understanding the product type and its corresponding classification. Each description was carefully analyzed to ensure that the item was accurately classified based on its usage, characteristics, and specifications in the MRO context. This allowed the team to assign appropriate categories, reducing errors in classification and increasing data reliability.

3

UNSPSC Classification

We assigned a unique UNSPSC (United Nations Standard Products and Services Code) to each item based on its product type and function. The classification process was driven by an in-depth understanding of the shipping sector, including mechanical parts, ship repair equipment, navigation tools, and accessories. Our team ensured that each MRO part was mapped to the appropriate UNSPSC category, aligning with industry standards for seamless integration across inventory and procurement systems. This classification provided a structured, standardized approach to managing the large volume of items, facilitating easy retrieval.

4

Assigning the Correct Unit of Measure (UOM)

When assigning UNSPSC codes, we ensured that the appropriate Unit of Measure (UOM) was considered for each item. This step was essential for accurate classification, as the UOM directly impacted how the product was categorized within the UNSPSC system. For example, items like mechanical parts, fasteners, and seals were classified with a UOM of "pieces," while larger equipment, such as ship engines, propellers, or navigation systems, were assigned a UOM of "units" or "sets." This careful attention to UOM ensured that each item was correctly mapped to its respective category.

5

Commodity-Level Classification

The project required strict adherence to commodity-level classification, which meant that each item had to be categorized in precise detail according to its specific function and characteristics within the shipping industry. For example, instead of broadly classifying items as "mechanical parts" or "marine equipment," each part was categorized into precise subcategories like "engine components," "hull fittings," "mooring equipment," or "marine pumps." This granular level of classification ensured that no items were misclassified or grouped under generic categories, facilitating accurate inventory management and enhancing the client's ability to quickly locate and manage MRO parts and other critical shipping components.

6

Quality Control (QC) Process

To ensure data accuracy, a multi-level quality control process was implemented throughout the classification effort. The process involved several stages of checks, with each level playing a crucial role in maintaining data integrity:

  • Level 1 - Self-Verification: The initial quality check was carried out by the doer themselves. The individual responsible for classifying each item reviewed their work to ensure that the classification was accurate and met the required standards.
  • Level 2 - Group Head/ATL Review: Once the item classification was completed, the Group Head or Assistant Team Leader (ATL) conducted a second-level review. This ensured that any inconsistencies or errors were addressed early in the process.
  • Level 3 - Account Manager Random Quality Checks: The final level of quality control involved random spot checks by the Account Manager to verify the overall accuracy and consistency of the classification process, ensuring that the data met both internal standards and client expectations.

Project Outcomes

196,000 MRO Items Classified
Within Stipulated Time

Completed classification of 196,000 items (100,000 in Phase 1 and 96,000 in Phase 2) within a short deadline with no delays.

Zero Misclassification at
Commodity Level

Achieved 100% accuracy in classifying all items at the commodity level, improving the client’s inventory system for precise component identification.

15% Improvement in Inventory
Visibility

Enhanced classification led to a 15% reduction in part misplacement, improving asset tracking and retrieval efficiency.

25% Reduction in Procurement
Lead Time

Streamlined categorization helped reduce procurement lead times by 25%, enabling more accurate forecasting and order management.

CONTACT US

Want to Boost Inventory and Procurement Efficiency? Contact Us for Comprehensive MRO Master Data Solutions

Looking for reliable MRO data categorization, data cleaning, or full-cycle MRO master data management services? We offer tailored solutions for your specific industry, backed by SMEs who truly understand your niche. Write to us at info@suntecindia.com.