2. The Purchase Specification: An Overall View8
The Purchase Specification: An Overall View

3. You Should Be Able To:
Give examples of information that should be included on purchase specifications.
Create a purchase specification.
Identify factors that influence the information included on purchase specifications.

4. You Should Be Able To (cont.):
Explain the potential problems related to purchase specifications.
Describe how quality is measured, including the use of government grades and packers’ brands.

5. Specifications
Product specification -- description of characteristics in a product to fill needs. Includes only information of product.
Purchase specification – includes product spec information and also includes services required from suppliers.

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

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

8. What May be 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

9. What May be 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

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

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

12. Potential Problems with Specs
Unreasonable requirements
Inadvertent discrimination
Too high of quality standards
Broad grades
Not flexible
Employees expertise in understanding information

13. Problems Associated With Bid Buying
Lowball bids
Inequality among bidders
Restrictive specifications
Redundant favoritism
Delivery schedules

14. Quality Must determine optimal quality to include on speck
Who makes quality decision?
Ultimately the customer
Owner/managers have more leeway with supplies not encountered by customers

15. Measures of Quality Federal government grades AP prices
Packers’ brands
Samples
Endorsements
Trade associations
Company’s specifications

16. Is the Quality Available?
Sometimes the desired quality is not available, e.g., low-quality apples for applesauce
Desired quality may only be available from one supplier

17. THE BUYER’S MAJOR ROLE
Maintain quality standards often set by others