Procurement Glossary
Specifications: definition, meaning and application in Procurement
November 19, 2025
The specification sheet is a central document in procurement that defines the client's requirements for a product or service. It forms the basis for tenders and supplier selection by precisely describing what is to be procured. Find out below what a specification sheet is, what methods exist for creating it and how it is used strategically in Procurement .
Key Facts
- Defines requirements from the client's perspective prior to procurement
- Differs from the functional specification in the perspective (what vs. how)
- Forms the legal basis for contract negotiations
- Enables objective supplier evaluation and comparison of offers
- Reduces procurement risks through clear specifications
Contents
Definition: Specifications - meaning, contents and delimitation
A specification sheet systematically documents all the requirements that a client places on a product or service to be procured.
Essential components of a specification sheet
The specifications include functional and non-functional requirements as well as framework conditions for procurement. It structures the company's expectations in a comprehensible form.
- Functional requirements (What should the system do?)
- Quality requirements and performance parameters
- Technical framework conditions and interfaces
- Delivery dates and project milestones
Requirements specification vs. functional specification
While the requirements specification describes the requirements from the client's perspective, the functional specification defines the specific implementation from the supplier's perspective. This differentiation is crucial for successful procurement projects.
Importance in the purchasing process
The specifications act as a communication tool between Procurement, specialist departments and suppliers. It enables a structured request for quotation and objective evaluation of the offers received.
Methods and procedures
The systematic creation of a specification sheet follows proven methods that ensure that all requirements are recorded in full.
Stakeholder analysis and requirements elicitation
The identification of all parties involved forms the starting point for the creation of specifications. Structured stakeholder management ensures that all relevant perspectives are taken into account.
- Workshops with specialist departments to determine requirements
- Interviews with end users and IT managers
- Analysis of existing systems and processes
Structured documentation
The systematic structure of the requirements specification follows established standards and templates. Requirements management ensures traceability and completeness.
Validation and release
A multi-stage review process ensures the quality of the specifications before the market approach. Both technical and legal aspects are taken into account.
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Important KPIs for specifications
The quality and effectiveness of specifications can be measured and continuously improved using specific key figures.
Completeness and quality indicators
These metrics evaluate the quality of the content of the specifications and their suitability for the procurement process. A high level of completeness reduces subsequent changes and misunderstandings.
- Proportion of fully specified requirements (target: >95%)
- Number of subsequent changes per project
- Average processing time for creating specifications
Process efficiency indicators
These KPIs measure the impact of the specifications on the entire procurement process. A well-structured specification accelerates supplier selection and reduces queries.
Project success metrics
Long-term key figures evaluate the contribution of the specifications to the overall success of procurement. The measurement focuses on adherence to deadlines, budget compliance and quality fulfillment.
Risks, dependencies and countermeasures
Incomplete or imprecise specifications can lead to significant problems in procurement projects and should be proactively avoided.
Incomplete requirements definition
Missing or unclear requirements lead to misunderstandings between client and supplier. A systematic requirements analysis minimizes this risk through structured survey methods.
- Subsequent changes and cost increases
- Delays in the project process
- Legal disputes during contract fulfillment
Overspecification and market restriction
Overly detailed technical specifications can restrict competition and prevent innovative solutions. Balanced specification management takes into account both requirements and market conditions.
Communication deficits
A lack of coordination between the departments involved can lead to contradictory requirements. Regular reviews and clear responsibilities provide a remedy.
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Practical example
A mechanical engineering company draws up a specification sheet for the procurement of new ERP software. The 45-page document defines functional requirements such as production planning and warehouse management as well as technical framework conditions such as interfaces to existing systems. After the structured preparation, five providers are invited to submit a bid.
- Reduction of tender evaluation time by 40% thanks to clear criteria
- Avoidance of renegotiations through precise specifications
- Successful project completion within the planned budget
Current developments and effects
Digitization is fundamentally changing both the creation and use of specifications in modern procurement.
Digital creation of specifications
Modern software tools enable the collaborative creation and management of specifications. Cloud-based platforms support collaboration between different locations and departments.
- Automated consistency checks and completeness checks
- Version control and change history
- Integration into existing ERP and procurement systems
AI-supported requirements analysis
Artificial intelligence is revolutionizing the analysis and structuring of requirements. AI in Procurement enables the automatic categorization and prioritization of specification contents.
Agile specification development
Iterative approaches are becoming increasingly important, especially for complex IT procurements. Agile procurement requires flexible specification structures that allow for changes during the course of the project.
Conclusion
The requirements specification is an indispensable tool for successful procurement projects that structures requirements and minimizes risks. The digital transformation opens up new possibilities for the collaborative creation and intelligent analysis of requirements. Companies that invest in professional requirements specification processes benefit from more efficient procurement processes and better project results. The balance between depth of detail and openness to the market remains the key to success.
FAQ
What is the difference between specifications and functional specifications?
The specifications describe the requirements from the client's perspective ("What is to be achieved?"), while the requirements specification defines the specific implementation from the supplier's perspective ("How will it be implemented?"). Both documents complement each other in the procurement process and form the basis of the contract.
When is a specification sheet required in procurement?
A specification sheet is particularly indispensable for complex procurements, individual solutions and larger investments. It structures the tendering process and enables objective bid evaluations. Simplified specifications can often be used for standard products.
How detailed should a specification sheet be?
The level of detail depends on the complexity of the procurement. Too many details can restrict competition, too few lead to misunderstandings. A balance between necessary specifications and freedom of design for suppliers is optimal.
Which departments should be involved in drawing up the specifications?
In addition to Procurement , specialist departments, IT, legal and quality management should also be involved. The end users provide important practical requirements, while technical experts assess the feasibility. Coordinated collaboration ensures complete and realistic requirements.
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