Specification Elements Play a Very Important Role

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

Source: Inventory Management Tips for Manufacturers

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