What is a Taxonomy?

 A taxonomy refers to a systematic classification system used to organize and categorize inventory items.
 

What Is a Taxonomy?

A taxonomy is a hierarchical structure that groups related items based on shared characteristics.  It provides a standardized way to organize and label products, making it easier for customers and staff to navigate the store.
 
In a hardware store, the taxonomy typically includes several levels:
Departments: The highest level of categorization (e.g., Plumbing, Electrical, Tools).
Categories: Subdivisions within departments (e.g., Faucets, Wiring, Hand Tools).
Subcategories: Further breakdown of categories (e.g., Kitchen Faucets, Outdoor Lighting, Screwdrivers).
Individual Products: Specific items (e.g., a particular faucet model, a specific light bulb type).
 

Benefits of Taxonomy

Efficient Inventory Management

: 
  • Staff can quickly locate and restock items. 
  • Customers find what they need faster.

    Consistent Labeling: 

  • Uniform taxonomy ensures clarity and consistency. 
  • Labels help customers identify products easily.

    Cross-Selling Opportunities

  • Similar items are grouped together, allowing for cross-selling (e.g. related tools or accessories).
 

Examples

Imagine a hardware store with the following taxonomy:
Department: Plumbing
Category: Faucets
Subcategory: Kitchen Faucets
Products: Delta Single-Handle Kitchen Faucet, Moen Pull-Down Faucet, etc.
 

Challenges

  • Creating an effective taxonomy requires understanding customer needs and balancing granularity.
  • Regular updates are necessary to accommodate new products and trends.