Specifications
Specifications set out the detailed requirements for the products or services you are buying. They make sure that the products and services paid for by your organisation are of the quality and quantity that you expect.
The specifications will be included in the contract between your organisation and the supplier, committing the supplier to deliver products or services that meet the specifications.
Defining what you want to buy can be one of the most difficult stages of the procurement process. It is important to note that specification errors, where terms have not been provided accurately or with enough detail, are one of the main reasons why procurement practice fails to meet the 5 Rs: right quality, right quantity, right price, right place, right time.
A specification that is inaccurate, incomplete or lacking in precision can lead to a number of problems, including:
- Poor bids being received, either overpriced or underpriced.
- Also makes comparison bids more difficult
- Claims for extensions of time or additional payments.
- Administration costs from clarifying contracts.
- The delivery of goods that do not meet the expected quality.
- Disruption to your own production, causing problems for your customers.
- In extreme cases, it can result in harm to patients.
- It is also worth appreciating that providing the supplier delivers according to your specification then you have to pay them, even if you have incorrectly specified the product.
There are two kinds of specifications: performance and conformance.
Performance specifications outline what a product or service must be capable of doing. For example, a vaccine, to be developed by the supplier using their expertise. We as the buyer are unable to specify the product as we do not have the knowledge.
Conformance specifications give more detail, setting out what a product or service will be made from. For example, a chemical formula or the density of a bandage.
Conformance specifications will have much more detail. The buyer will need technical knowledge, or the assistance of a colleague with such knowledge, possibly one who makes use of this product or service.
Here are some of the differences between a performance specification and a conformance specification:
Producing the specification for a product or service is often a team effort, particularly if a conformance specification is needed. These are some of the colleagues and stakeholders who can help:
Finance manager: What is the available budget?
Customer/client: Is the end user satisfied with the specification?
Procurement: Can procurement source a product or service that meets the specification and the available budget?
Quality control: Does the specification meet the required quality standards?
Production manager: Does the specification conform to existing production arrangements?
Research, development and design: Does the specification match the brief? Is it environmentally friendly, sustainable and recyclable/disposable?
Warehouse manager: Can the product be transported, stored safely and cost effectively?
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