Vendor Management

Vendor Management

Check out the latest Vendor Management Interview Questions for your next role. So start for you interview now!

Q.1 What do we mean by strategy?

Strategy generally involves, setting goals and priorities, determining actions to achieve the goals, and mobilizing resources to execute the actions.

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Q.2 What are the types of organizational strategies?

The strategy wheel model includes five types of organization strategy: shared, hidden, false, learning and realized.

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Q.3 What are the 5 stages of strategy development?

The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.

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Q.4 What are the 7 steps of the strategic management process?

1. Review or develop Vision & Mission. 2. Business and operation analysis. 3. Develop and Select Strategic Options. 4. Establish Strategic Objectives. 5. Strategy Execution Plan. 6. Establish Resource Allocation.

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Q.5 What are the five P's of strategy?

The 5 P's of Strategy are: Plan, Pattern, Position, Perspective and Ploy.

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Q.6 What is strategic sourcing and why is it important?

Strategic sourcing allows businesses to consolidate their purchasing power to achieve the lowest possible total cost of ownership and minimise risk to the supply chain.

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Q.7 What is the aim of strategic sourcing?

Strategic sourcing aims to achieve the lowest Total Cost of Ownership (TCO) along with minimal supply chain risk.

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Q.8 What are the benefits of strategic sourcing?

1. Reduce Direct and Indirect Costs. 2. Boost Long-term Supplier Relationships. 3. Gain Efficiency and a Systematic Approach. 4. Mitigate Supplier Risk.

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Q.9 What are the elements of strategic sourcing?

1. Utilization Management. 2. Vendor Strategy Development. 3. Spend Aggregation. 4. Objectively Informed Negotiation.

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Q.10 What are the four basic strategic management tools?

The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation.

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Q.11 What are the roles of purchasing?

1. Identifying requirements for goods, materials and services. 2. Identifying reliable suppliers. 3. Price negotiations. 4. Comparison of delivery terms. 5. Establishing order quantities. 6. Writing requests for bids and awarding supply contracts. 7. Coordinating delivery with the warehouse against storage capacities.

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Q.12 What is a procurement portfolio?

The purpose of analysing the procurement portfolio is to develop a full and comprehensive picture of the procurement needs of the organisation.

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Q.13 What is the Kraljic Matrix?

Kraljic Matrix is divided into 4 quadrants showing the profit impact on one axis and supply risk on the other axis.

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Q.14 What are the four quadrant in the Kraljic matrix?

The four quadrants are: Strategic, Leverage, Bottleneck and Non-Critical.

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Q.15 What is the purpose of Kraljic matrix?

The purpose is to help purchasers maximize supply security and reduce costs, by making the most of their purchasing power.

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Q.16 Who created the Kraljic Portfolio Purchasing Model?

The Kraljic Portfolio Purchasing Model was created by Peter Kraljic and it first appeared in the Harvard Business Review in 1983.

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Q.17 What are the types of sourcing strategies?

1. Outsourcing. 2. Insourcing. 3. Near sourcing. 4. Vertical integration. 5. Few or many suppliers. 6. Joint ventures. 7. Virtual enterprise.

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Q.18 What is Low-cost Country Sourcing?

It is a procurement strategy in which a company sources materials from countries with lower labour and production costs in order to cut operating expenses.

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Q.19 What is Global Sourcing?

Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries.

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Q.20 What are the features of global sourcing?

1. Executive commitment to global sourcing. 2. Rigorous and well-defined processes. 3. Availability of needed resources. 4. Integration through information technology. 5. Supportive organizational design. 6. Structured approaches to communication. 7. Methodologies for measuring savings.

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Q.21 What is the benefits of sourcing?

The benefits of strategic sourcing are increased savings, enhanced reputation, risk management, the continuous scope for improvement, and better decision making.

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Q.22 What is offshore outsourcing example?

Call centers, help desks, finance and accounting services for the organizations internal operations are all examples of offshore outsourcing.

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Q.23 What are the benefits of offshore outsourcing?

1. Reliable optimised sourcing. 2. Focused operational excellence. 3. Tailored operating model integration. 4. Measurable sales and service optimisation.

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Q.24 Define offshore outsourcing?

Offshore outsourcing is the process of relocating your office jobs to countries with lower labour costs but equal expertise.

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Q.25 What are benefits of outsourcing?

1. lower costs. 2. increased efficiency. 3. variable capacity. 4. increased focus on strategy/core competencies. 5. access to skills or resources. 6. increased flexibility to meet changing business and commercial conditions. 7. accelerated time to market.

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Q.26 What are the 4 goals of purchasing?

There are four major goals of purchasing: maintain the right supply of products and services, maintain the quality standards of the operation, minimize the amount of money the operation spends, and stay competitive with similar operations.

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Q.27 What are the responsibilities of purchase department?

Purchase departments help keep organizations financially healthy. They procure goods and services designed to meet operational needs while providing the highest possible value.

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Q.28 What are the duties and responsibilities of purchasing officer?

1. Evaluate Suppliers. 2. Negotiate with Suppliers on Behalf of Employer. 3. Work Out Logistical Agreements with Suppliers. 4. Maintain and Review Purchasing, Shipping, and Receiving Records. 5. Attend Industry Trade Shows.

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Q.29 What is KPI in purchasing?

A procurement KPI or metric is a measurable value that tracks all relevant aspects of obtaining or buying goods and services.

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Q.30 What is ROI in purchasing?

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

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Q.31 List the five essential methods of purchasing?

1. Bulk Purchasing. 2. Hand to Mouth Purchasing. 3. Speculative Purchasing. 4. Blanket Purchasing. 5. Reciprocate Purchasing.

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Q.32 What is purchasing organization structure?

The purchasing organization is an organizational unit which procures articles and negotiates general purchase price conditions with vendors.

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Q.33 What are the different types of purchasing organization?

1. Centralized Purchase. 2. Coordinated (Combined) Purchase. 3. Independent (Local/Separate) Purchase. 4. Independent + Active Consultant Style Purchase. 5. Comparison table of purchase organization types.

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Q.34 What are the advantages of JIT purchasing?

1. More cost efficient production. 2. Continuous quality improvement. 3. Waste Elimination. 4. Improve productivity. 5. Improve supplier relationships. 6. Improve storage space used. 7. Reduce costs associated with storage. 8. Reduce manufacturing time.

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Q.35 What is the concept of JIT?

The Just-In-Time (JIT) concept is a manufacturing workflow methodology aimed at reducing flow times and costs within production systems and the distribution of materials.

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Q.36 What is green purchasing?

Green Purchasing is generally defined as purchasing a product that has a lesser or reduced negative effect or increased positive effect on human health and the environment.

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Q.37 Define Contract?

A contract is a legally binding document between at least two parties that defines and governs the rights and duties of the parties to an agreement. A contract is legally charted because it meets the requirements and approval of the law.

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Q.38 What are the contract elements?

For a contract to be legally binding it must contain four essential elements: 1. an offer. 2. an acceptance. 3. an intention to create a legal relationship. 4. a consideration (usually some asset).

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Q.39 Explain the Indian Contract Act, 1872?

The Indian Contract Act, 1872 prescribes the law relating to contracts in India and is the key act regulating Indian contract law. The Act is based on the principles of English Common Law. It is relevant to all the states of India. It determines the circumstances in which promises made by the parties to a contract shall be legally binding.

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Q.40 In how many sections is the Indian Contract Act, 1872 divided?

The Act as enacted originally had 266 Sections: 1. General Principles of Law of Contract – Sections 01 to 75 2. Contract relating to Sale of Goods – Sections 76 to 123 3. Special Contracts- Indemnity, Guarantee, Bailment & Pledge and Agency – Sections 124 to 238 4. Contracts relating to Partnership – Sections 239 to 266

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Q.41 Define Contract of indemnity?

A contract by which one party promises to save the other from dropping caused to him by the contract of the promisor himself, or by the conduct of any other person, is called a "contract of indemnity".

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Q.42 What is Negotiation?

Negotiation is a discussion between two or more people or parties intended to reach a beneficial outcome over one or more issues where a conflict exists with respect to at least one of these issues.

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Q.43 What is the meaning of Negotiative?

The process of discussing something with someone in order to reach an agreement with them, or the discussions themselves.

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Q.44 What are the 7 basic rules of negotiating?

1. Always tell the truth. 2. Use Cash when making purchases. 3. Use walk-away power. Don't get emotionally attached to the item. 4. Shut up. 5. Use the phrase: "That isn't good enough" 6. Go to the authority. 7. Use the "If I were to" technique. "

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Q.45 How do you acquire negotiation skills?

1. Recognize the power of thorough preparation. 2. Take a proactive approach to negotiation training. 3. Be ready to make mistakes. 4. Practice, practice, practice. 5. Find a good negotiation coach.

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Q.46 What are the seven steps to negotiating successfully?

1. Gather Background Information 2. Assess your arsenal of negotiation tactics and strategies 3. Create Your Negotiation Plan 4. Engage in the Negotiation Process 5. Closing the Negotiation 6. Conduct a Postmortem 7. Create Negotiation Archive

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Q.47 Explain assertive communication?

Assertive communicators can express their own needs, desires, ideas and feelings, while also considering the needs of others.

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Q.48 What do you know about the Verbal Communication?

Verbal communication is the use of words to share information with other people. It can therefore include both spoken and written communication.

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Q.49 What do you know about the Non-Verbal Communication?

Nonverbal communication (NVC) is the transmission of messages or signals through a nonverbal platform such as eye contact, facial expressions, gestures, posture, and body language.

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Q.50 Give some tips to Communication Skills Development?

1. Simplify and stay on message. 2. Engage your listeners or readers. 3. Take time to respond. 4. Make sure you are understood. 5. Develop your listening skills, too. 6. Body language is important. 7. Maintain eye contact. 8. Respect your audience.

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