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The fundamentals of specifications and KPIs that are included in…
The fundamentals of specifications and KPIs that are included in contractual arrangements made with suppliers
Specifications
Standards
One of the shortcuts used in writing specifications is quoting recognised standards and codes of practice i.e ISO
Advantages
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Standards mean the procurement can be sure that different approaches will still meet
the desired outcome.
supplier will be able to understand specifications more quickly as they will know the extent to which their offer meets or doesn't the standard requested
Disadvantages
standards being applied that aren’t intended for their situation, adding cost without value
small companies might not be as familiar with international standards in comparison to bigger companies, but they may be able to do the work, however they wont bid for the job
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The standardisation of requirements ( is the process of making products or processes conform to a standard.
Advantages
offers increased reliability and service enhancement as the personnel become familiar with the standard product
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providing clarity regarding the specification and accuracy of quotations as suppliers are familiar with producing the standard product
can save time in the procurement process, as buyers can use standard specifications
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Increased standardisation reduces the range of products available, but there might be cases where increasing the range is a better option. This is known as differentiation, or adaptation.
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