Q1: As an in procurement, what would you say is the

difference between strategic sourcing and Purchase.

For a detailed answer please read my frequently read and quoted blog STRATEGIC SOURCING
VS. PURCHASING – 7 KEY DIFFERENCES
The short answer of this question is as follows:
One of the key difference of Strategic Sourcing in contrast to conventional purchasing is that it
extends beyond purchasing and focuses on converging and sustaining the buyer-supplier-
relationships (Skjøtt-Larsen & Schary, 2001). The objective is to leverage them, exploit their
capabilities, integrate and complement the core competencies of the various partners in the supply
chain (interdependence) so as to provide value and cost efficiencies and uniqueness for the
customer.

Q2: How would you define incoterm using some

leading examples?

Amongst the Procurement Interview Questions, this is one question every professional needs to nail.
You can learn more by reading LIFETIME BASICS OF FOREIGN TRADE MANAGEMENT – 3
THINGS YOU NEED TO KNOW
This blog has everything you need to know about trade management.

Q3: What approach and definition do you apply to

purchasing?

As a basic concept deltabid has written a very good article on procurement management.
Understanding the concept of buying and the processes involved while buying any product or
service is essential. With this Procurement Interview Questions, you should be able to know the
difference between procurement and purchasing with the provided response. Part of your response
should include how suppliers are compared and awarded, specifications, which internal customers
are involved, etc. With this, you also get to know if internal stakeholder’s negotiations are allowed.

Q4: Which procurement problem are you currently

facing and what solution have you applied?

There is a variety of problems currently facing the procurement division. The mark of excellence
here is how well thought out the response is. You can maintain going deeper and more profound
until you get satisfied. In this question, the interviewer wants to know how broad your experience is
in solving procurement problems. Make sure you think hard and find the best problem you (not your
team members) have solved, what was the scenario, what approach you have taken and what was
the outcome. You can learn more here.

Q5: What was your best/favorite negotiation; and why

was it your best?

The responses you get will tell you more about the candidate’s definition of value. With this
Procurement Interview Question, you get a better view of his/her interpretation of values, style and
interpersonal skills. There are a host of information available on CIPS regarding negotiation or you
can find this forbs article useful to get you thinking outside the box!

Q6: Can you describe an experience, buying or

selling, you successfully coordinated its activities?

Describing a successful experience in which he/she was a significant partaker in coordinating the
activities speaks volume of his/her style and personal touch. Also, this Procurement Interview
Question, would mainly tell if he/she has the required experience level you are looking for in a
procurement professional. You can learn more here.

Q7: What are the logic & Principle of goods and

services procurement?

Using procurement to deliver sustainable outcomes

The document should consider procurement as a strategic process and a way

of delivering business objectives through a supply chain. procurement
techniques such as market analysis, forward commitment, life cycle
assessment, risk management, whole-life costing, scenario modelling, social
return on investment and more.

Focus on impacts material to the procurer

The sustainability requirements of an organisation need to be clearly defined

and materiality understood in consultation with stakeholders.

‘Sustainable supply’ not ‘sustainable supplier’

It should not primarily focus on the sustainability practices of the supplier in
their own organisations unless this represents a risk to the purchasing
organisation (e.g. labour standards).

Not one-size-fits-all

Prioritisation should be of the essence to the standard. Sustainability impacts

and risks should be mapped against categories of supply and high priority
impacts/categories should be addressed first.

Manage demand

Demand management should be key to the standard. The most sustainable

way to procure is not to buy at all or to keep demand to a minimum by
operating the business more efficiently. There needs to be an organisational
link between procurer and user of goods, works and services.

Embedding sustainability into current procurement practice

It is important for the standard to address achieving more sustainable

outcomes through the current procurement practices of an organisation. It is
not telling you to buy better, it should set out how to deliver sustainability
through a variety of procurement processes for all sizes and types of
organisations.

Tier one is not the only one

The standard is not just about the first tier of suppliers. It must reference
management of the overall supply chain where there are often significant risks
(such as labour standards) or opportunities (for example positioning local
SMEs in lower tiers of the supply chain).

Full and fair opportunity

Local procurement, minority businesses, SMEs etc. are often significant

stakeholder priorities and should be supported through the supply chain
where appropriate. However, this needs to be set in the context of full and fair
opportunity and not positive discrimination.
Q8: How would you manage your supplier
development strategy and activities. if you have only
one in a country?

Q9: What are your targets and goals if you

are hired?
My goal is to part of a growing and innovative company and add as much values as possible while
develop my professional and personal traits. To elaborate this my objective here is at Ceylon
beverage can would be sourcing materials and services for company operation at an optimum cost
with required quality and ensuring on time delivery to maintain uninterrupted operations. In the future
once I gain necessary experiences I would like to take more responsibilities.
Q10: What is your procurement risk
management strategy against unreliable
suppliers?
Technical Risk; tools, capabilities and technical knowhow of the company/ supplier in question
including future developments and innovations.
Quality Risk: Quality management of the company/ QMS systems and particular QMS for the
specific project or product.
Financial Risks: function soundly for duration of the project. Financial condition/ cash flows and so
on. Example; J & P & aluminum manufacturer.

Q11: Are there any challenges with past trends and

what action plans do you offer?

This question covers the kind of commodities the procurement expert prefers and what level of
understanding he possesses on past trends which can be applied to the here and now. A good
expert always has a strategy or action plan in place to minimize risk on cost and zero shortage
concerning the plan.
You should be able to pick your reasons from Top 10 Biggest Procurement Challenges [Infographic].

Q12: What are your biggest Procure to Pay

challenges?
 Supply management
 Cart or requisition
 Purchase order
 Receiving
 Invoice reconciliation
 Accounts payable

suggests friction in the procure-to-pay (P2P) process is a common problem for businesses around
the world, although the causes of friction do vary somewhat by region. For example, many large
businesses in Europe source vendors from multiple countries, a scenario that creates additional
regulatory and tax complexities.

My experience and the facts mentioned above suggest a few basic questions:
 Do we know which procure-to-pay (P2P) process elements we should try to improve?
 What are the typical cost & time inefficiencies or wastes we face before we try to improve?
 Who is the owner of a procure-to-pay (P2P) process?
Whilst the answers of these question might differ to a certain extent depending on the size of the
organisation, in my experience, there are six common procure-to-pay (P2P) issues that are crippling
the procurement resources.

1. High Proportion of Paper Invoices

Received
It goes without saying that rattling through paper invoices to clear them is cumbersome. I find it
daunting when my direct reports put a pile in front of me to sign for approval. I certainly don’t have
time to clear all the exceptions. What is more annoying is when auditors come in and ask me loads
of questions regarding those invoices! For me, it is a no-brainer to use automated and smooth
procure to procure-to-pay (P2P) solutions.

2. Non-PO (Purchase Order) Based

Invoices
Since I have learned the benefits of three-way matching early on my life, I didn’t understand why we
would even have non-PO invoices from supplier. But in reality, we do. And these are the ones which
go on problem invoices that cannot be matched to PO (as it does not exist), as well as invoice holds.
Therefore, non-PO invoices still require substantial manual effort without a proper solution.
I can sympathize and understand why non-PO invoices drive Accounts Payable (AP) folks crazy. But
I argue that AP professionals are no longer just data-entry professionals who process payments.
Now, they are expected to be analytical problem solvers who can perform root-cause analysis and
improve operations by eliminating issues before they exist, or come up with the process to resolve
them.

3. Suppliers Chasing Buyers for Unpaid

Invoices
This is probably the most common, painful task in a buyer’s life: unpaid suppliers chasing for
invoices and occasionally threatening to put deliveries or services on STOP, which can impact your
customer service and lead to loss of revenue.
Dealing with late payment and unpaid invoices can feel a bit like a very precarious course. On one
hand is the need solve the problem while maintaining a cordial supplier relationship. And, on the
other hands, it is not always in your hands to get it resolved. This is where the relationship with your
Finance Manager comes in handy!
Late payments can be the serious threat for SME suppliers. A research shows, the average SME is
owed £40,857 in unpaid invoices, with £20,937 of that total overdue. For a SME business, this
amount can be a difference between profit or loss in a particular month, and can put them at risk of
closure.

4. Lack of Automation
I believe that if you are going to hire the best people, you also need to give them the best tools to
make the most of their talents. While most organisations have access to an ERP system, they
should also focus on Procure-to-Pay (P2P) automation. The successful organisation focuses on
eliminating waste by reducing manual or non-value-added activities by adoption more automation
tools.
A study by Tungsten Network shows organisations wasted on averages 125 hours per week. By
automating Procure-to-Pay (P2P) process, you can focus your procurement resources in delivering
commodity strategy, drive cost reduction and focus on technologies that truly make a difference in
terms of analytics and intelligence.

5. Lack of Accurate Spend Visibility

Even today, some medium to large business struggle to have complete spend visibility. Accurate,
reliable and easy-to-access visibility of how much is spent, on what and with whom, is something a
most business should strive for. However, solving the problem of poor spend visibility is not
intrinsically build into most ERP systems. Therefore, procurement folks have to do with software and
system outside ERP.
In this day and age when trends like Big Data, Artificial Intelligence and Machine Learning are
manifesting themselves, I don’t think it is too far fetch to assume we can run spend analytics and
cost saving with press of a button!

6. No Single Accountable P2P Owner

So, who owns a Procure-to-Pay (P2P) process? Is it finance or procurement function? Traditionally,
it is usually split between procurement and AP team in Finance. However, I argue this arrangement,
and I think one person or one function should be held accountable. I am not too particular about
either; it should Procurement or AP, but it has to be one team. Having said that, like most things in
supply chain and procurement, the owner needs to coordinate with every stakeholder in business to
achieve the desired result.
Moreover, the actual reporting lines do not matter. Organisations must consider segregation of
duties, and other controls must always be present, for example, SOX compliance for US-based
businesses.
This list of six Procure-to-Pay (P2P) mistakes is not exhaustive. I have not mentioned the other
lurking issues like violation of contract terms, duplicate invoices, etc. However, they are the most
common I have found in my experience.
Final Thoughts.
The successful companies who master robust Procure-to-Pay (P2P) process do look at ways to use
technology and other means to create a better experience for employees while finding ways to save
money.
They also treat Procure-to-Pay (P2P) as the transactional process, meaning they use valuable
human resources to conduct a process which can be automated with some work. Top performing
firms ensure that Procurement’s hard work gets realised at the moment of truth: driving cost
reduction, spend management, sourcing, new production introduction, and service innovation.
The thinking point here is this: what we have to do to free procurement professionals from the lower-
value Procure-to-Pay (P2P) activities and support them to focus on introducing new products and
services. My other suggestions would be:
 Ensure all processes are tied back to a good “system of record”
 Optimize working capital to support both Days Payable Outstanding (DPO) requirements while also
aggressively taking early payment discounts
 Find ways to achieve intuitive and flexible communication with suppliers via supplier portal and third-
party connectivity.
Last but not the least: Implementing enabling procure-to-pay (P2P) software is just one aspect of the
overall procurement process. The procurement community must also focus on rationalising your
supply base, appropriately training people, and creating a better supplier relationship.

If you have encountered other issues with procure-to-pay (P2P) process or have used certain
solution which works for you, please share with me in comments below

Q13: Ask them about their Market

intelligence and strategy?
This Procurement Interview Questions aims to gauge the depth and breadth of information they have
coming in. A Buyer and Or Commodity Manager is only as right as the information they use to lead
financial decisions they are tasked to make. If they just react to demand from a system database
and supplier feedback, you are interviewing a Procurement coordinator not a Buyer. This
article briefly talks about Procurement Strategy Development which could be a good start to gather
your thoughts.

Q14: How do you manage your relationship

with your supplier
If you are seasoned procurement professional it is very likely that you would know the answer of this
question and may talk for hours, if there is no time limit! However, don’t take this question lightly.
Here, the interviewer is trying to understand your ethos and technical knowledge of how you would
manager supplier relationship. I have written an article on 10 Must Have Customer Supplier
Relationship Areas – How Many You Have? This would give a theoretical framework you need to
answer this question.
Another useful article is Supplier Partnership Vs Traditional View of Supplier Management
You must prepare for this, as this is amongst most frequently asked Procurement Interview
Questions.

Q15: Give me an example where you have

to lead the cost reduction programme.
Since I am a supply chain guy and my focus is primarily on KPI’s like Inventory, On-Time Delivery,
lead time reduction and so on and so forth, which, at times, I find it contradictory to the procurement
guys main aim of cost reduction.
For example, I have gone into battle with some commodity managers who have agreed a very high
batch size of machined parts to get the best price, which throws my Just in Time, lean means supply
chain design out of the window! So, we need to find the right balance between cost reduction and
best supply chain design to meet customer service targets and operational goals. So, to help my
procurement friends, I have written a blog on 27 Uplifting Cost Reduction Strategies You Should Try ,
which I am sure they will find useful.
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Q16: Ask about CIPS and its importance or

any Procurement related qualification?
In my view, asking the candidate if he/she has ever heard about CIPS and its importance or any
Procurement related qualification is also essential.
As an interviewee, if you are thinking between APICS VS CIPS – What Should You Choose?
You must read this blog!

Q17: What do you think is the difference

between Strategic Sourcing and
Purchasing?
Q18: What have been the most significant
achievements in your procurement career?
The processes or steps they go through is fundamental, and how they measure their success on the
job. A clear response to this useful statement ensures you are dealing with an expert in the
commodity/category. You can learn more here

Q19: What do you like the most and the

least about procurement?
Enjoying the job is one aspect not everyone finds easy. A real expert always loves the job yet would
still have their likes and dislikes about procurement. Also, do not forget to ask questions which could
ensure their integrity of dealings most importantly. You can learn more here.
Q20: How would you describe regular day-
to-day activities?
I would prefer choosing an activity or item and plan for a negotiation strategy, then negotiate with it.
In my opinion, a practical approach should be evaluated by using an existing practical issue from the
Procurement domain. This will quickly show you their attitude and mindset. You can learn more here

Q21: How JIT Purchasing is different from

Traditional Purchasing.
JIT purchasing is a just in time purchasing the material should arrive just when you needed not
sooner or later.

CONCLUSION
Well, I hope you enjoyed the 21 Procurement Interview Questions and Answers Guide and have
learned something new about it. My desire is for everyone in procurement to get the best deals and
have a better view of what is the likely expectations from a professional. If you have more
Procurement Interview Questions or additions to make, feel free to add them. We are open to
learning, and hearing about new ideas too!!
If you are looking for Top Tips on how to find your next opportunity in procurement watch my vlog
below on this topic.

1. Can you tell me more about the day-to-day responsibilities of this

job?

2. What do you think are the most important qualities for someone to
excel in this role?

3. What are your expectations for this role during the first 30 days, 60
days, year?

4. Describe the culture of the company.

5. Where do you think the company is headed in the next 5 years?

6. Who do you consider your top competitor, and why?
You should already have an idea of the company’s major competitors, but it
can be useful to ask your interviewer for their thoughts. Naturally, they will be
able to give you insight you can’t find anywhere else.

7. What are the biggest opportunities facing the company/department

right now?
This question shows your drive to seize opportunity and may help you learn
more about where the company will be focusing over the next several months.

8. What are the biggest challenges facing the company/department right

now?
On the flip side, you may want to ask about challenges. This question can
help you uncover trends and issues in the industry and perhaps identify areas
where your skills could save the day.

9. What do you like best about working for this company?

Ask about your interviewer’s personal experience for additional insight into the
company’s culture.

10. What is the typical career path for someone in this role?

11. How do I compare with the other candidates you’ve interviewed for
this role?
This is a slightly risky choice. You don’t want to put the interviewer in an
awkward position. However, if things are going well and you’ve built a strong
rapport, this question can help you see if there are any concerns or issues
that you could address to show why you’re the best person for the job.

12. What are the next steps in the interview process?

This question shows that you are eager to move forward in the process. It will
also help you gain important information about the timeline for hiring so that
you can follow up appropriately.