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Standardization - Enables Mass Production Enables Customization Improves Supplier Coordination Improves Quality Enables Simplification Enables Delayed Differentiation - which reduces Inventories and total cost.
Specifications - Communicate to professionals in the supply management department what to buy.
■ Communicate to prospective suppliers what is required.
■ Establish the tangible goods to be provided.
■ Establish the intangible services to be provided, such as warranty, maintenance, and support.
■ Establish the standards against which inspections, tests, and quality checks are made.
■ Balance the specification goals of individual departments, relevant suppliers, desired product or service performance and cost.
