VCU Procurement Services

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What Are Commodity Codes and Why Are They Important?

Commodity codes are numerical codes used to classify products and services. They help organize and identify items in procurement.

Why They Matter:

  1. Standardization: They provide a common language for identifying items, reducing confusion.
  2. Efficiency: Make ordering and inventory/services management faster and easier. Requisitions are routed in RealSource appropriately.
  3. Data Analysis: Help track spending and find cost-saving opportunities.
  4. Compliance: Ensure procurement meets legal and regulatory standards.
  5. Cost Control: Improve visibility into spending, helping to manage costs better.

Using commodity codes makes procurement of goods and services more efficient and helps everyone money and stay compliant.

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