Data Classification Archives - USC Consulting Group

In industrial operations, Maintenance, Repair, and Operations (MRO) functions are essential but often overlooked as a source of inefficiency. While MRO spend typically accounts for less than 10% of a company’s total procurement, it can represent up to 80% of its transactional activity. The root of this imbalance?

Poor data.

Bad MRO data is more than a technical issue, it’s a strategic liability. Duplicate part numbers, inconsistent naming conventions, missing attributes, and obsolete records all combine to slow down procurement, increase errors, and inflate costs. The problem is so pervasive that some studies estimate up to 26% of all purchase orders require rework due to bad data.

How Poor Data Inflates Transaction Costs

Economists refer to the hidden friction in business processes as transaction costs-the overhead incurred not from the value of goods themselves, but from the effort required to find, negotiate, and manage those goods.

In MRO, transaction costs are driven by three main issues:

Search & Information Costs: Technicians spend hours searching for parts due to inconsistent or missing descriptions. Inventory may be in stock but not findable due to duplicates or poor categorization.
Bargaining & Decision Costs: Without a standardized view of item-level data, procurement can’t consolidate purchases, compare prices, or analyze spend across suppliers, weakening negotiation power.
Policing & Enforcement Costs: Mismatches between purchase orders, invoices, and goods receipts arise from inaccurate data, creating labor-intensive reconciliation and delays in payment or fulfillment.

These costs don’t just reduce efficiency, they erode trust in systems and waste valuable labor hours across procurement, maintenance, and finance teams.

The Power of a Clean, Structured MRO Dataset

Fixing these problems starts with building a clean, enriched, and standardized MRO data foundation. That means:

Removing duplicate entries and normalizing naming conventions
Enriching descriptions with missing attributes like dimensions, materials, and manufacturer part numbers
Assigning consistent classifications using global taxonomies such as UNSPSC or eCl@ss

When data is standardized and machine-readable, organizations can streamline part identification, automate procurement, and unlock powerful analytics. They can also reduce inventory costs, prevent emergency orders, and improve supplier performance tracking.

Automating the Solution with AI

The scale and complexity of MRO datasets make manual data cleansing and classification impractical. That’s where AICA’s Product Data Intelligence platform plays a pivotal role.

AICA automates the process of data classification, cleansing, and enrichment by applying domain-specific machine learning models trained on millions of MRO records. It can:

Detect and merge duplicates
Normalize inconsistent formats
Assign accurate UNSPSC GPC, or eCl@ss codes
Enrich missing product attributes

The result is a reliable, structured material master that integrates directly into ERP, EAM, and procurement systems, serving as a “single source of truth” for all MRO items.

How USC Consulting Group and AICA Work Together

We’ve partnered with AICA enabling us to deliver rapid, scalable improvements in material master quality for our clients, unlocking cost savings, productivity gains, and strategic sourcing capabilities.

Together, USC and AICA help organizations move beyond firefighting and toward a future of proactive, data-driven operations, where every transaction is faster, smarter, and more reliable.

Start your product data transformation today, get in touch with us to find out more.

One of USC Consulting Group’s partners, AICA, has developed a groundbreaking Agentic AI Classification Tool that automates UNSPSC classification, leveraging advanced AI solutions to transform product data management, procurement optimization, inventory management, spend analysis, compliance auditing, and overall operational efficiency.

This innovative tool represents a significant leap forward in data classification technology and has already begun to reshape how organizations approach the classification of products and services.

What is Agentic AI?

Agentic AI refers to advanced artificial intelligence systems that operate autonomously, executing tasks with minimal or no human intervention. Unlike traditional AI models that require constant oversight, agentic AI adapts to predefined goals and delivers results independently, maintaining high levels of accuracy and efficiency.

This approach reduces reliance on manual processes and human input, enabling faster execution, lower costs, and fewer errors.

Why This Tool is Transformative

The Agentic AI Classification Tool is a breakthrough in automating the classification of products and services using the United Nations Standard Products and Services Code (UNSPSC). Here’s why this technology stands out:

Fully Automated Classification: The tool autonomously handles the entire UNSPSC classification process, eliminating the need for manual intervention and significantly reducing time and labor requirements.
Exceptional Accuracy and Speed: With unparalleled precision, the tool processes data faster than traditional methods, ensuring reliable and actionable results.
Cost-Effectiveness: By minimizing the need for manual classification, businesses can achieve substantial cost savings.
Versatility Across Systems: While designed for UNSPSC, the tool’s adaptable architecture can support other classification systems, extending its application across industries.
Built-In Quality Assurance: Quality scoring features allow businesses to identify areas where human verification may be beneficial, ensuring data integrity.

Key Features

The Agentic AI Classification Tool includes several advanced features:

Autonomous Classification: Fully automates classification tasks, streamlining workflows.
API Integration: Seamlessly integrates with enterprise systems and can be implemented in weeks.
Scalability: Efficiently processes large datasets, making it ideal for high-volume data management.
Customizable Applications: Capable of adapting to various classification systems to meet industry-specific needs.
Quality Feedback Loop: Provides quality scores to monitor and maintain accuracy.

Use Cases

The technology offers solutions across a variety of business functions, including:

Procurement Optimization: Improved supplier management and purchasing efficiency through accurate product classifications.

Inventory Management: Enhanced stock control by reducing categorization errors.

Spend Analysis: More accurate financial reporting and budgeting through precise spend data classification.

Compliance and Auditing: Support for regulatory requirements with standardized and auditable product classifications.

A Transformative Impact on Data Management

This Agentic AI tool enables businesses to reduce classification times, cut labor costs, and achieve higher levels of accuracy and reliability than traditional manual methods. It also supports organizations in scaling their operations to handle increasing data volumes effortlessly.

Looking Ahead

As one of USC Consulting Group’s trusted partners, AICA continues to lead the way in AI-powered solutions for data classification. Their Agentic AI technology exemplifies how innovation can drive efficiency and improve outcomes for businesses managing complex data systems.

By leveraging tools like this, organizations can focus their resources on strategic goals, leaving routine and labor-intensive tasks to advanced AI solutions.

Tag Archives: Data Classification