Comprehensive and Detailed Explanation (paraphrased from CIPS L4M2 content)
CIPS L4M2 explains that specifications in procurement serve several fundamental purposes, including:
Defining the requirement clearly – so that all stakeholders (user, buyer, supplier) have a shared understanding of what is needed.
Forming the technical basis for contracts and orders – what is being purchased.
Providing measurable criteria to assess quality and conformance – what will be inspected and tested.
Therefore:
A. To define the requirements – correct. This is one of the primary roles of a specification.
D. To provide a means of evaluating the quality or conformance – correct. Specifications set the criteria against which delivered goods/services are checked.
The other options do not reflect the core role of specifications:
B. Supplier appraisal and selection – this uses specifications indirectly but supplier appraisal is a separate process (using financial, capability, and performance criteria).
C. Define the bargaining strength of the buyer – bargaining strength is shaped by market structure and spend, not by the specification itself.
E. Minimise the bargaining strength of the supplier – not an explicit purpose of specification, and could actually backfire (e.g. over-specification reducing competition).
Relevant CIPS L4M2 areas:
Purpose and role of specifications in the procurement cycle
Specification as a basis for quality assurance and contract management
Links between specification and supplier evaluation
