The Uniform Code Council, Inc. (UCC) and the American Petroleum Institute (API) announced an agreement by which the API will develop the voluntary global classification standards of the United Nations Standard Products and Services Code® (UNSPSC) for the oil and natural gas industry. The UCC is a leader in facilitating efficient international business and is the code manager of the UNSPSC.
The UNSPSC is a widely adopted global standard for classification of products and services developed by the United Nations Development Programme (UNDP). Oil and gas companies plan on using the UNSPSC to facilitate electronic commerce, reduce organizational costs, and improve supply chain efficiencies.
“We are pleased to be working with the Uniform Code Council on behalf of the United Nations Development Programme to develop standard classification nomenclature for upstream oil and natural gas services,” said Jim Twyman, Corporate Affairs Committees Manager for API. “Global standards are critical to the oil and natural gas industry’s efforts to facilitate payments to contract terms and to enhance financial analysis capabilities.”
“We appreciate the American Petroleum Institute’s leadership on this issue,” said EAN.UCC President Dennis Harrison. “As a result of this agreement, an oil and natural gas industry product classification schema will be incorporated into the UNSPSC, ensuring continued strength and an increasing degree of robustness in the code set.“
Companies use the UNSPSC to facilitate electronic commerce. The UNSPSC provides the basis for procurement processes, enabling users to market products and services more efficiently and avoid the expense of maintaining a proprietary classification code. In addition, sellers, buyers, and procurement specialists can perform analysis and make decisions in time-critical ways that would not be possible without using the UNSPSC.