Specifications are statements of requirements to be satisfied in the supply of a product or service. As part of the purchasing cycle, Specification has many roles to play in the procurement process and some are as follows.
The specification defines the major requirements expected in the product to be supplied before any procurement contract is finalized, the consumer is supposed to state very clearly to the suppliers, the exact features, and requirements they need in the product or service they are procuring.
When the right specifications are given out to the suppliers, it makes the procurements of the goods to be supplied easy, and higher chances of supplying goods devoid of faults and defects will be achieved. Also, specifications are used as evidence in times of disputes between suppliers and consumers.
In the case where the goods supplied does not conform to the specifications given to the consumer, the consumer can refuse to pay for the product since it does not conform to the requirements earlier.
There are two types of specifications. We have the PERFORMANCE SPECIFICATION and CONFORMANCE SPECIFICATION. With Conformance specification, the buyer details exactly what the required product must consist of. It specifies the physical features, the roles the product performs and many more.
Performance specification on the other hand, is where the buyer describes; what he expects the product to achieve in terms of the functions, it will perform and the level of performance it will reach.