Chapter 8 The Purchase Specification An Overall View
Purchase Specification Product specification -- description of characteristics in a product to fill needs. Includes only information of product. Purchase specification -- also includes services required from suppliers.
Why Have Specs? Create quality and cost control standards Help avoid misunderstandings Can be used as a training device Assist in the bid process
Who Decides What to Include on a Spec? Owner or manager Buyer User Some combination of the three
What is Included on a Spec? Type of package Preservation or processing Point of origin Packaging procedure Ripeness Form Color Performance requirement Exact name Packer’s name Grade Size Trim Package size
What is Included on a Spec? Cont. Cost and quantity limitations General instructions Specific instructions to bidders Trade association standards Approved substitutes Expiration date Chemical standards Inspection procedure
What Influences the Spec? Goals and policies Time and money available Production systems Storage facilities Skill levels of employees Menu and prices Service style
Who Writes the Spec? Company personnel Industry publications Hire an expert Buyer and supplier can work together
Potential Problems with Specs Unreasonable requirements Inadvertent discrimination Too high of quality standards Broad grades Static information Employees expertise in understanding information
Problems Associated With bid Buying Lowball Inequality among bidders Tight specifications Redundant favoritism Delivery schedules
Measures of Quality Federal government grades Packers’ brands
Copyright ©2008 John Wiley & Sons, Inc.