Purchase Manager

We have curated top 25 Interview questions and answers that will prepare you for a job as Purchasing Manager, procurement specialist, Purchase Assistant.

Q.1 Which method of purchasing, is the most economical and involves more capital investment
Bulk
Q.2 Which fixed price contract is suitable when changes are expected but can't be predicted at the time of agreement
fixed price with price redetermination contract
Q.3 Which fixed price contract involves, the supplier and buyer set a maximum price, and then negotiate a lower price if the supplier meets the buyer's specific requirements
fixed price with incentive contract
Q.4 What should assessment criteria include in the price category
return on investment, total cost of ownership of the supplier's product and supplier's price in relation to market rate
Q.5 Which supplier evaluation criteria is crucial
payment terms, delivery capability and price
Q.6 Which factor relating to payment terms, is crucial in assessing a vendor
method of payment, costs of payment and difference between fixed price versus a variable rate
Q.7 Which step helps to determine this technical capability of supplier
inspect each supplier's technical certifications , conduct site visits and review each supplier's historical performance records
Q.8 What will enhance your listening skills
give the other party your full attention, avoid interrupting and keep an open mind
Q.9 What is the key principle to a successful negotiation process
Mutual Benefit, Fairness and Maintaining A Relationship
Q.10 What is the benefit of a strong relationship with a supplier
develop ways to improve processes , increase efficiency and achieve higher responsiveness
Q.11 What is needed to develop a personal business relationship with supplier
meet face-to-face , discuss mutual concerns and manage expectations effectively
Q.12 Which factors are the main difference between a transactional relationship and a strategic alliance with supplier
supplier's capability, extent of information sharing that occurs and project planning horizon
Q.13 What is the important component of a completed performance evaluation scorecard for suppliers
weight values, criteria for evaluating performance and date range
Q.14 What is the crucial criteria to monitor for supplier performance
delivery, pricing and quality
Q.15 Which performance issue is faced by a supplier
performance expectations are unclear , no incentives for the supplier to perform well and supplier's lack of capability
Q.16 What does an employees performing a purchasing function can be expected to perform
selecting, assessing, and rating suppliers, developing and maintaining supplier relationships and obtaining prices and reducing purchase costs
Q.17 What is the key strategic consideration in a corporate purchasing strategy
securing a stable supply channel, keeping costs and prices low and managing stock levels
Q.18 What is the essential guideline for developing SOW
definitive in terms of standards, being specific and well organized
Q.19 Which crucial criteria is considered when selecting possible suppliers
capabilities, reliability and cost
Q.20 Which factor affect the way you choose suppliers
number of suppliers in the industry, uniqueness of the product and geographic locations of suppliers
Q.21 Which factor does the negotiation and resulting contract depends upon
market demand, product and availability
Q.22 Which reason make it necessary for businesses to adopt good purchasing strategies at a corporate level
inflation, better control of investment in inventory and shortages of materials
Q.23 What affects stable supply channel
risk involved, uncertain nature of supply availability and sources of supplies
Q.24 What is the advantage of using multiple supply sources
encourages competition , increased organizational flexibility and access to expertise of multiple suppliers
Q.25 Which document can be used to solicit goods or services
RFP
Q.26 What specifies the essential activities that the vendor needs to complete
SOW
Q.27 What requests supplier information before a supplier list is finalized
RFI
Q.28 What are the objectives of material handling ?
1. Optimum Utilisation of Equipment 2. Increase in Warehouse Capacity 3. Reduction in Manufacturing Cost
Q.29 What is Operating flexibility ?
Operating flexibility refers to the ability to make adjustments in internal policies and procedures to accommodate product and customer requirements
Q.30 What does MRP expands to?
Materials Requirements Planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes.
Q.31 Which factor can critically affect Materials Budget?
1. Production Budget 2. store position 3. Management policy
Q.32 What is Brisch codification sysytem?
codification system is based on numbers starting 0 to 9, and comprise usually three blocks separated by decimals
Q.33 Decentralized stores are used in which situation?
Decentralized stores are used when consumption centers are situated at different and distant places, while the transaction of goods is quite high
Q.34 What is the objective of using the control chart?
To evaluate process performance over time
Q.35 Which tools do you use to track the progress of a projects?
This question is somewhat related to time management and work prioritization. The sole objective of asking this question is to understand the daily time and prioritization period being used such that it accommodates changes. The recruiter is expecting a good answer to this question that projects you as someone who stays in command of his job and works on defined timelines.
Q.36 What is your experience in creating budgets?
This question has been asked to get know about your ability to handle scale and scope. Focus on elaborating your expertise and if you have experience in smaller budgets, then do not forget to include how your models have the ability to scale.
Q.37 What are your career goals?
This type of question is asked during the interview to determine if your career goals get along with the career path of the company. it therefore becomes important for you to elaborate how the position you are interviewing for will fit into your long term goals thereby leading to a win-win situation for both parties.
Q.38 What is your management style as a purchase manager?
One of the most important point to keep in mind while answering this question is to avoid any type of labels. Some of the most common labels used are, progressive, consultative, persuasive, that can have several meanings or descriptions based on the management style. It is always suggested to focus on the situational style since it is safe, as it focuses on managing according to the situation, instead of one size fits all. Sample Answer - Given my experience, delegating responsibility and authority is very important. It is suggested that team should develop and grow as individuals and a whole, and not be held back by low expectations. I strongly believe in building a team where each team member should be clear on their role, as per their fit and the team should feel as if they can depend on one another. As the managing authority I believe in real-time feedback. Since it is important to understand if you do something wrong and rectify at the earliest.
Q.39 What is Reciprocal Trading?
Reciprocal trading providers participating nations with equivalent competitive trading opportunities based on mutual agreements negotiated to adjust tariffs, duties, and customs restrictions in order to increase foreign trade and improve border-to-border relationships among participating countries.
Q.40 What is Counter Trading?
Counter trading offers cash to poor countries and organizations greater access to the world markets by offering them an alternate method of acquiring goods.
Q.41 Which process should be used to determine vendor's price reasonableness when lack of pricing information available?
When there is a lack of pricing information to determine price reasonableness, we must focus on cost analysis which can be performed to evaluate and verify a vendor's cost data and proposed profit.
Q.42 What do you understand by Bench Marking?
Benchmarking refers to the continuous process of measuring an organizations products, services, costs, and practices against those of competitors or organizations that display their best in class achievements.
Q.43 Which tools do you use to track the progress of a projects?
This question is somewhat related to time management and work prioritization. The sole objective of asking this question is to understand the daily time and prioritization period being used such that it accommodates changes. The recruiter is expecting a good answer to this question that projects you as someone who stays in command of his job and works on defined timelines.
Q.44 What is your experience in creating budgets?
This question has been asked to get know about your ability to handle scale and scope. Focus on elaborating your expertise and if you have experience in smaller budgets, then do not forget to include how your models have the ability to scale.
Q.45 What are your career goals?
This type of question is asked during the interview to determine if your career goals get along with the career path of the company. it therefore becomes important for you to elaborate how the position you are interviewing for will fit into your long term goals thereby leading to a win-win situation for both parties.
Q.46 What is your management style as a purchase manager?
One of the most important point to keep in mind while answering this question is to avoid any type of labels. Some of the most common labels used are, progressive, consultative, persuasive, that can have several meanings or descriptions based on the management style. It is always suggested to focus on the situational style since it is safe, as it focuses on managing according to the situation, instead of one size fits all. Sample Answer - Given my experience, delegating responsibility and authority is very important. It is suggested that team should develop and grow as individuals and a whole, and not be held back by low expectations. I strongly believe in building a team where each team member should be clear on their role, as per their fit and the team should feel as if they can depend on one another. As the managing authority I believe in real-time feedback. Since it is important to understand if you do something wrong and rectify at the earliest.
Q.47 What is Reciprocal Trading?
Reciprocal trading providers participating nations with equivalent competitive trading opportunities based on mutual agreements negotiated to adjust tariffs, duties, and customs restrictions in order to increase foreign trade and improve border-to-border relationships among participating countries.
Q.48 What is Counter Trading?
Counter trading offers cash to poor countries and organizations greater access to the world markets by offering them an alternate method of acquiring goods.
Q.49 Which process should be used to determine vendor's price reasonableness when lack of pricing information available?
When there is a lack of pricing information to determine price reasonableness, we must focus on cost analysis which can be performed to evaluate and verify a vendor's cost data and proposed profit.
Q.50 What do you understand by Bench Marking?
Benchmarking refers to the continuous process of measuring an organizations products, services, costs, and practices against those of competitors or organizations that display their best in class achievements.
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