Specifications

Understanding Specifications

• A specification is a detailed description of the design and materials used to make something. It’s like a recipe for a product or service, outlining all the necessary ingredients and instructions.
• Buyers provide specifications to suppliers to communicate their requirements accurately. By doing this, they help the supplier understand exactly what is expected.
• Making sure suppliers meet these specifications is a fundamental part of the buying process for businesses.

Types of Specifications

• There are different kinds of specifications, each suitable for different situations. The main types include performance specifications, design specifications, and material specifications.
• Performance specifications define how a product or service should perform. These typically include parameters like speed, efficiency, or durability.
• Design specifications describe the physical or visual attributes of a product like shape, color, size, and style.
• Material specifications define the types of materials used in a product including quality, grade or standard of the material.

Role of Specifications

• Specifications are often part of a legal contract between a buyer and a supplier. If the supplier fails to meet the specifications, the buyer may have legal grounds for complaint.
• By following specifications closely, suppliers can ensure they deliver exactly what the buyer needs. This good practice can lead to long-term business relationships, repeat orders, and positive reputation for the supplier.

Checking Specifications are Met

• It’s important to perform checks to ensure that the products or services delivered meet the agreed specifications. This is known as quality control.
• These checks may involve various processes such as visual inspection, testing, audit or even customer feedback.
• The frequency and extent of the checks will depend on the nature of the items being supplied and the specific risks involved.

Specifications and Negotiation

• Buyers and suppliers often negotiate over specifications. For example, if a supplier can’t meet a buyer’s precise requirements, they may suggest changes or alternatives.
• Effective negotiation around specifications requires both parties to be flexible and open-minded, whilst also ensuring their core needs are met.
• This can result in a mutually satisfying deal that strengthens the buyer-supplier relationship.

Understanding and applying specifications is therefore a critical aspect of business buying, helping businesses find the right products, establish effective contracts, and maintain quality control.