1. Chapter 8 The Purchase Specification
An Overall View

2. 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.

3. Why Have Specs? Create quality and cost control standards
Help avoid misunderstandings
Can be used as a training device
Assist in the bid process

4. Who Decides What to Include on a Spec?
Owner or manager
Buyer
User
Some combination of the three

5. 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

6. 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

7. What Influences the Spec?
Goals and policies
Time and money available
Production systems
Storage facilities
Skill levels of employees
Menu and prices
Service style

8. Who Writes the Spec? Company personnel Industry publications
Hire an expert
Buyer and supplier can work together

9. Potential Problems with Specs
Unreasonable requirements
Inadvertent discrimination
Too high of quality standards
Broad grades
Static information
Employees expertise in understanding information

10. Problems Associated With bid Buying
Lowball
Inequality among bidders
Tight specifications
Redundant favoritism
Delivery schedules

11. Measures of Quality
Federal government grades
Packers’ brands

12. Copyright ©2008 John Wiley & Sons, Inc.