If you are in the business of bidding, specifications play a very important role.

In writing specifications, the following elements should be considered:

  • Do not request features or quality that are not necessary for the items’ intended use.
  • Include full descriptions of any testing to be performed.
  • Include procedures for adding optional items.
  • Describe the quality of the items in clear terms.

The following actions can help save money when you are stocking inventory:

  • Substitution of less costly materials without impairing required quality
  • Improvement in quality or changes in specifications that would lead to savings in process time or other operating savings
  • Developing new sources of supply
  • Greater use of bulk shipments
  • Quantity savings due to large volume, through consideration of economic order quantity
  • A reduction in unit prices due to negotiations
  • Initiating make-or-buy studies
  • Application of new purchasing techniques
  • Using competition along with price, service and delivery when making the purchase selection decision