Why is the specification considered as the most important document in procurement?

Why is the specification considered as the most important document in procurement?
A . It provides a mean to appraise the performance of supplier
B . It helps the buyer to gain at supplier’s loss
C . It eliminates all possible supply risks
D . It always shifts the balance of bargaining power in favour of the buyer

View Answer

Answer: A

Explanation:

Specification is the most important document in procurement because it sets out the quality which supplier must provide. If there is no spec or the spec lacks clarity and details, supplier’s performance may vary and possibly lower than actual requirements. This puts the buyer at risks. On the other hand, if the spec is clear and detailed, the supplier is liable to provide ‘fit for purpose’ products or perform the service at required level of quality. This will ensure that the buyer achieve ‘Right Quality’.

Reference: – CIPS study guide page 116-130

– How fitness for purpose works – Evocurement LO 3, AC 3.1