Nomenclature structure: how to set up product types, brands, and groups for accurate analytics

Proper organization of product nomenclature in the Torgsoft software is the foundation for all management reporting. The product structure in the system does more than help you find an item in the list: it directly affects automatic name generation, pricing, synchronization with online stores, and analytics accuracy.

Below is a detailed breakdown of how the directory hierarchy becomes a business management tool.

1. The foundation: the product type tree

This is the system’s main classifier. Unlike ordinary folders, the «Product type» defines behavior rules for all products included in it.

• Hierarchy and inheritance. The structure is tree-like (for example, Clothing → Outerwear → Jackets). Top-level settings (for example, markup, tax parameters, price rounding) are automatically applied to all sub-branches, which significantly speeds up adding new products.

• Automatic naming. The «Product type» is the key element of the name builder. The software lets you set a template that automatically generates the product name (for example: Type + Manufacturer + Model + Size). This removes inconsistency in naming when different employees enter products in different ways.

• Connection with marketplaces. It is through «Product type» that mapping to categories on Rozetka or Prom is configured. If the tree is built illogically, synchronization with online platforms will be incorrect.

2. Classifiers: Manufacturer, Country, Collection

These directories exist alongside the product type tree and enable cross-cutting analytics.

• Structure. The manufacturer directory can also be hierarchical (Country → Brand → Collection). This allows you to analyze sales not only by a specific brand, but also by country of origin overall.

• Coding. A manufacturer can be assigned a code that will be automatically added to the product SKU. This ensures SKU uniqueness within the store, even if different suppliers use similar internal codes.

3. Product groups: flexible marketing

If «Product type» is a rigid accounting structure, then «Product groups» are a flexible tool for marketing and temporary groupings.

• Purpose. Product groups combine products from different branches of the tree (for example, «Shoes» and «Toys») into one entity for a specific goal: a promotion, a seasonal sale, or synchronization of a specific selection with an online store.

• Promotion automation. Promotion settings (for example, «1+1=3» or bundle discounts) are based on product groups. You can create a «Summer Sale» group, include certain product types or brands, and apply a discount only to them.

4. Dynamic attributes: deeper analytics

For products with specific properties (screen size for phones, fabric composition for clothing), dynamic attributes are used.

• Detailing. They are added to a specific «Product type». This lets you avoid overloading the product name with extra information while still storing it in the product card for filtering and exporting to the website.

• Filters in the online store. These attributes become filters on the website (for example, selection by color, material, or season).

5. How structure turns into analytics

A properly configured nomenclature makes it possible to generate reports that answer specific business questions:

• Sales analysis by product types. Lets you see the profitability of each category. For example, you can find that «Accessories» generate more margin than the main product thanks to analysis of the product type tree.

• Analysis by manufacturers. Helps identify which brand drives sales and which one only takes up shelf space and freezes working capital.

• ABC and XYZ analysis. Classifies products by importance (contribution to profit) and demand stability. Without a clear structure, this analysis will be inaccurate because it mixes incomparable products.

• Seasonality. Sales analysis by seasons helps plan purchases based on historical sales data linked to the «Season» directory.

6. Common mistakes and consequences (based on support experience)

• Duplicate entities. Creating a «Manufacturer» as part of the product name manually instead of selecting it from the directory. This prevents automatic brand analytics.

• Ignoring hierarchy. Creating a flat list of products without groups. This creates chaos in reports when you cannot analyze a category as a whole.

• Not using dynamic attributes. Entering size or color only in the name prevents full work with size grids and website filters.

The nomenclature structure in Torgsoft is not just a product list: it is the backbone of your business analytics. Investing time in properly setting up «Product types», «Manufacturers», and «Attributes» at the start saves hundreds of hours of manual report consolidation in the future.