Understanding the NIGP Commodity/Services Code Jean Clark, FNIGP, CPPO, CPPB, C.P.M, CPM President NIGP Code & Consulting Services What is the NIGP Code? • Listing of codes and sub-codes that • Copyrighted material of NIGP categorize everything that an • It is NOT software. agency buys from computer hardware to construction services. • The NIGP Code is developed and maintained from user input. • The taxonomy allows an agency to group suppliers and procurements • It is a purchasing code that is by established categories - commodity driven, not supplier provides ease in solicitation driven. management and reporting. What can the Code be used for? • Register, maintain, and purge supplier files • Identify M/W/V/SB suppliers • Perform open-market solicitations/bidding • Capture purchase/spend history • Generate management reports/foundation for analysis • Cooperative purchasing opportunities • Identify and track inventory items • Provide valuable assistance in electronic commerce purchasing activities Associate suppliers with Supplier Registration commodities/services they provide by linking to the correct NIGP Code(s) • Allows suppliers to self-select targeted areas for solicitation opportunities • Identify additional sources of supply for increased cost savings and competition • Track suppliers by business type and product/services • Utilize for competitive cooperative procurements Supplier Management • Development of non-restrictive specifications for increased competition • Produce more substantive reports Associate every line-item with an NIGP Spend Analysis Code • Track expenditures • Know how much you’ve spent on every item in every department • Know how much you’ve spent on every supplier in every department • Plan and execute your budget • Produce more substantive reports • Identify the purchases spent with each supplier • Identify and analyze top spend High Performance categories/products and services • Analyze contracts and total spend Efficiency and Organization Communicate Between Track Inventory Departments • Stock identification system • Standardized item identification independent of UPC’s • Example of alternative • Seamless re-order process with – Pedestrian signal procurement – Signal – crosswalk • Don’t have to order what you – Crossing signal already have • Search/report across departments in the same language Enables comparisons with other peers (comparative analytics) “Greening of the Code” • Identify ”green certified” products • Currently have 10 classes in the Code • Can everything have a green counterpart? NIGP Code Hierarchy Hierarchy Framework NIGP Code Structure 3-DIGIT Enables: • 005: Abrasives • Generation of expenditure history by • 060: Automotive maintenance items department or organization for fiscal and parts planning, budget execution, procurement planning • 269: Drugs and pharmaceuticals • 32 Categories of classes for executive • 393: Foods: Staple grocery and reporting and product catalogs grocer’s miscellaneous items • 01 Administrative, Financial, and Management Services • 425: Furniture: Office • 04 Automotive Products, Vehicles and Services • 19 Office Supplies, Related Items and Services • 31 Environmentally Certified Products • 32 Higher Education 5-DIGIT • 425-03: Bookcases and bookshelves, metal and wood • Enables: • Automation of supplier selection • 425-21: Desks and tables, wood for solicitations • 425-54: Modular panel systems • Categorization of supplier (with metal connectors) • Production of no-bid/offer • 425-60: Posture chairs responses – competition • 425-68: Rotary filing systems analysis • 425-87: Storage cabinets, data • Small/minority business and processing HUB reports • 425-94: Work stations, modular • Capture of purchase/spend systems furniture history 7-DIGIT • 425-21-38: Desks, Wood, • Enables: Contemporary, Laminated Slab End • Development of item • 425-21-46: Desks, Wood, Small specifications Top, Executive, Brass Hardware, Central Locking System • Increased creation and • 425-21-70: Tables, End, management of spend data Rectangular • Supports categorization for • 425-21-85: Tables, wood, strategic sourcing and term conference, contemporary, paneled- contract leg style, laminated plastic top • Strong foundation for increased item descriptions 11-DIGIT • 425-21-85-1404: 60 in. X 30 in. • Enables: w/center drawer, mahogany finish • Creation, management, and • 425-21-85-1453: 60 in. X 30 in. maintenance of detailed w/center drawer, lacquer walnut line-items finish • Identification of inventory • 425-21-85-5553: 72 in. x 36 in. items w/o center drawer, mahogany finish Limited only by the procurement software utilized NIGP Code Examples & Uses State of Arizona State of Washington City of Tampa City of Tampa Texas Dept. of Transportation Texas Dept. of Transportation Summary of the NIGP Code . NIGP Commodity/Services Code is the key to managing your suppliers, procurements, and inventory . NIGP Commodity/Services Code is the key to unlocking your procurement spend and analysis opportunities . Is focused on public sector - developed and managed by public procurement professionals . Provides a common foundation for all procurements . It is a purchasing code that is commodity driven, not supplier driven. NIGP Commodity/Services Code Information www.nigp.com [email protected] or 1-800-757-6064.