1 chapter 8 the purchase specification an overall view
TRANSCRIPT
1
Chapter 8The 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?
Performance requirement
Exact name Packer’s name Grade Size Trim Package size
Type of package Preservation or
processing Point of origin Packaging
procedure Ripeness Form Color
6
What is Included on a Spec? Cont.
Trade association standards
Approved substitutes Expiration date Chemical standards Inspection procedure
Cost and quantity limitations
General instructions
Specific instructions to bidders
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.