Sourcing Strategy

Why Over-Specifying Kills Procurement Value

Writing a 40-page recipe for suppliers feels safe — but it's like ordering a pizza by specifying every grain of flour. You pay 8–15% more, block better ideas, and get yesterday's technology at today's prices.

8–15%

Higher costs from rigid spec sheets

Like paying a premium for custom blueprints when a standard design works better

30–45%

Spec sheets untouched for 3+ years

Nearly half of all active specs are older than your phone (McKinsey, 2016)

40%

Less maintenance when suppliers innovate

A new pump design cut repair costs 40% — but the old spec blocked it entirely

THE TWO APPROACHES

Outdated

Write a 40-page spec sheet listing every material, dimension, and process. It's like telling a chef exactly how many grains of salt to use — you lock in the recipe, not the result.

8–15% cost premium + blocked innovation

Smarter

Describe what the thing needs to DO, not how to build it. Like telling a chef "I need a delicious pasta dish for 20 people" — you get creativity and cost savings, not just compliance.

Lower cost + better designs + more bidders

WHERE THE OLD APPROACH BREAKS DOWN

Your spec describes the old pump — so the new pump can't even bid. A supplier with a magnetic-drive design that cuts maintenance 40% is locked out because your spec demands a mechanical seal. It's like insisting on a floppy disk when USB drives exist — you get a copy of the old thing at a slightly better price and never see the upgrade.

Old specs lock in old costs. A spec written ten years ago demands brass because brass was cheap back then. Today, an engineered polymer delivers the same strength at 60% less cost — but the spec still says brass, so you still buy brass. It's like using 2016 grocery prices to budget your 2026 shopping list.

Copying your supplier's catalog into the RFP isn't competition — it's a rigged game. When you paste the incumbent's data sheet into the bid document, you've described exactly what they already sell. Every competitor must jump through hoops the incumbent set up. The cheapest-looking bid wins, and the same supplier keeps the contract — you just paid them slightly less for the same thing.

Jargon Decoder

Specification A detailed recipe telling suppliers exactly what to build, down to the materials and measurements — like specifying every ingredient instead of the dish you want.

Sourcing The process of finding and choosing who will supply what you need — like picking which grocery store gives you the best tomatoes for your money.

RFQ Request for Quote — asking suppliers "how much would you charge for this?" It's like getting price tags from multiple stores before deciding where to shop.

Value Engineering Finding cheaper or better ways to build something without losing what makes it work — like swapping a name-brand ingredient for a generic that tastes the same.

Outcome-Based Telling suppliers what the thing needs to DO, not exactly HOW to build it — like saying "I need a quiet dishwasher" instead of listing every screw and gasket.

Sources: McKinsey & Company (2016), CIPS Specification Writing Guide, NIST Performance-Based Specifications Guide (2020), NLPA. Analysis and intelligence from Rzzro.

Rzzro

Procurement, quantified.