Interview Questions & Answers
A. Procurement & Purchasing
Q: What is the procurement cycle?
A: The procurement cycle includes identifying a need, selecting suppliers, requesting quotations,
negotiating terms, issuing purchase orders, receiving goods/services, and processing payment.
Q: What's the difference between procurement and purchasing?
A: Purchasing is the act of buying goods/services, while procurement includes sourcing, supplier
selection, negotiation, and vendor management.
Q: What is a Purchase Order (PO)?
A: A formal document from a buyer to a supplier detailing items, quantities, and agreed prices.
Q: What's an RFQ and when do you use it?
A: RFQ means Request for Quotation - used to collect prices from different suppliers for
comparison.
Q: How do you handle late deliveries from a supplier?
A: Communicate with the supplier, understand the reason, assess impact, and look for solutions or
alternatives.
Q: What is vendor management?
A: Maintaining good relationships with suppliers, tracking performance, and resolving issues.
Q: What are the main risks in procurement and how do you avoid them?
A: Risks include price changes, delays, and poor quality. Avoid them by choosing reliable suppliers,
monitoring performance, and using contracts.
Q: How do you evaluate a supplier's performance?
A: Using KPIs like delivery time, quality, communication, and reliability.
Q: What are Incoterms and why are they important?
A: Incoterms are rules defining responsibilities in international shipping - like who handles insurance,
customs, and transport.
Q: What is strategic sourcing?
A: A long-term procurement strategy focused on cost, quality, and building supplier relationships.
B. Logistics & Supply Chain
Q: What is logistics?
A: Logistics is the planning, movement, and storage of goods from one place to another.
Q: What's the difference between logistics and supply chain?
A: Logistics is about transport and storage; supply chain covers the full journey from raw material to
delivery.
Q: What are the key activities in warehouse operations?
A: Receiving, storing, picking, packing, and shipping goods.
Q: What is inventory management?
A: Tracking and controlling stock levels to avoid shortages or excess.
Q: What's lead time?
A: The time between placing an order and receiving the goods.
Q: How do you ensure timely delivery of goods?
A: Plan well, choose reliable suppliers, track shipments, and follow up regularly.
Q: What are the main challenges in logistics?
A: Delays, damaged goods, poor tracking, and high transport costs.
Q: What software/tools have you used or are you familiar with in logistics?
A: Excel, Google Sheets, and learning ERP tools like SAP or Oracle.
Q: How do you track shipments or inventory in real time?
A: Use software systems that update inventory and shipping statuses instantly.
Q: What are the KPIs used to evaluate logistics performance?
A: On-time delivery, inventory accuracy, order fulfillment rate, delivery cost, and warehouse speed.
Q: What is reverse logistics?
A: Managing returned goods or recycling from customer back to the company.
Q: How would you optimize a supply chain for cost and efficiency?
A: Use better planning, reduce waste, and choose cost-effective suppliers.
Q: How do you deal with supply chain disruptions?
A: Stay calm, assess the problem, talk to suppliers, and find alternatives.
Q: What is 3PL (Third-Party Logistics)?
A: Outsourcing storage, delivery, or transport to another company.
C. Business Operations & Management
Q: How do you prioritize tasks when handling multiple projects?
A: Sort tasks by urgency and importance, and focus on high-priority ones first.
Q: How do you improve a business process?
A: Find where time or effort is wasted, then simplify or automate steps.
Q: How do you handle repetitive tasks?
A: Set small goals, stay focused, and find ways to do it faster.
Q: What tools do you use for reporting or task management?
A: Excel, Google Sheets, Trello, and learning ERP tools.
Q: How do you handle cross-functional communication?
A: Keep messages clear and make sure everyone understands their role.
Q: How do you monitor KPIs for operational success?
A: Track key numbers regularly using spreadsheets or dashboards.
Q: Describe a situation where you improved efficiency.
A: Created a simple tracking sheet to reduce delays and improve follow-up.
Q: How do you prepare a report or dashboard?
A: Collect data, organize it in Excel, and show key info with tables or charts.
Q: How do you support strategic planning in operations?
A: Help with timelines, task coordination, and performance tracking.
Q: How do you eliminate waste in a process?
A: Spot where time or resources are wasted, and improve or remove steps.
Q: What are Lean or Six Sigma principles?
A: Lean = reduce waste. Six Sigma = reduce errors. Both aim for better quality.
Q: How do you make sure business operations align with company goals?
A: Follow goals closely, track progress, and communicate with teams regularly.
