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Specifications: Definition & important aspects for buyers
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Specifications in a nutshell:
A specification sheet is a detailed document that precisely describes all technical, functional and qualitative requirements for a product or service. For purchasing, it serves as a legally binding basis for tenders, offers and contract negotiations with suppliers.
Example: An automotive supplier draws up a 50-page specification sheet for the procurement of a new production plant, which specifies a capacity of 10,000 parts per day, a maximum error rate of 0.1% and an availability of 98% and thus serves as the basis for the invitation to tender to five potential suppliers.
Contents
What is a specification sheet?
A functional specification is a detailed document that describes all requirements, specifications and framework conditions for the realization of a project. It is usually created by the contractor and specifies how the client's requirements defined in the specifications are to be implemented technically and organizationally. The requirements specification serves as a binding basis for the collaboration and ensures that both parties have a clear understanding of the project procurement and specifications.
Core elements of a specification sheet
- Technical specifications: Detailed description of the technical implementation and functional requirements
- Project objectives and scope: Clear definition of project objectives, scope of services and boundaries
- Resource planning: information on required resources, personnel and technologies
- Milestones and schedules: setting dates, deadlines and project phases
Importance of specifications in purchasing
The specifications play a decisive role in the procurement process. It enables the purchasing department to communicate clear and precise requirements to potential suppliers. This ensures that offers are comparable and meet the actual needs of the company. A carefully drawn up specification helps to minimize risks, optimize costs and guarantee the quality of the procured products or services.
- Transparency: Clear specifications facilitate the evaluation of offers and selection of suitable suppliers
- Contractual basis: The specifications serve as the basis for legally binding contracts and service agreements
- Quality assurance: precise specifications allow quality standards to be maintained and checked
Specifications: From static documents to agile specifications
The functional specification is an essential tool that bridges the gap between client and contractor. In practice, it enables a clear and binding definition of all project requirements, functions and features. However, in a rapidly changing business world, traditional specifications are reaching their limits. The need to react more flexibly and responsively to changes calls for a further development towards more agile approaches.
Old: Traditional specifications
Traditional approach: In the traditional approach, the requirements specification is created as a comprehensive, static document at the start of the project. It contains detailed specifications and defines how the requirements from the specification sheet are to be implemented. Typically, word processing programs are used for this and the creation requires intensive coordination phases between the parties. The main characteristics are a fixed structure and a high level of detail. However, change management or extensions during the project often lead to difficulties, as the rigid format makes adjustments difficult. This can lead to delays, increased costs and communication problems.
New: Agile Specification Documentation
Agile specification documentation: This modern approach transforms the specification into a dynamic, collaborative document. By using agile methods and tools such as Jira or Trello, requirements are converted into flexible units such as user stories and backlogs. This process enables continuous updates and adjustments in real time, promotes internal communication and reduces bureaucratic hurdles. The focus is on innovation and adaptability, allowing projects to be implemented more efficiently and effectively. Practical benefits include faster response times to market changes, improved product quality and increased satisfaction for all parties involved.
Practical example: Implementation in the IT sector
A software company was faced with the challenge of implementing a complex customer project with frequently changing requirements. By switching from a traditional requirements specification to Agile Specification Documentation, the team was able to react more flexibly to change requests. The introduction of two-week sprints and regular sprint reviews led to a 20% reduction in development time. The quality assurance agreement increased by 35%, as adjustments were integrated without major administrative effort. In addition, the number of errors fell by 25% due to continuous testing and feedback loops.
Conclusion on supplier evaluation
The specifications are an indispensable tool for successful project implementation and procurement. It creates transparency, minimizes risks and forms the contractual basis between all parties involved. The success of a specification depends to a large extent on the precise formulation of requirements, the active involvement of all stakeholders and effective change management. In times of digital transformation, agile methods and modern collaboration tools are becoming increasingly important.
