Buying by Specification - Definition & Meaning
What is Buying by Specification?
Purchase is done on the basis of the specific descriptions or specifications of the item rather than standard version. Customers generally mention their specifications to the salesman and the company either provides the suitable version or customize the product according to the needs.
Some products are especially brought by specifications like laptop, fabric, steel, grains, fertilizers etc and is used specifically in B2B business where the companies need customized products according to their needs
The specifications include size, weight, quality paaramters, memory, life, colour etc based on the prodcut.For example for laptop the specifications will be memory size, RAM size, battery life, etc
Eg
The purchase specifications contain:
a) Definition of each items.
b) Grade or brand name of each item
c) Weight, size, or count.
d) Unit against which price should be coated.
e) Special note for commodity.
Objective
• Helps the system establish buying standard
• Helps the supplier in writing requirements and specifications
• Setting price of the product
• Get standard product based on popular specifications
• Get specifications to compare and benchmark products
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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