DGM Procurement Interview Questions and Answers

I handle monopoly of vendors by exploring alternative options and negotiating with the vendor.

• Research and identify alternative vendors

• Compare pricing and quality of products/services

• Negotiate with the current vendor for better pricing and terms

• Consider long-term contracts or partnerships

• Maintain good relationships with vendors to ensure continued cooperation

The volume of purchase and China sourcing strategy details are discussed in the interview.

• The volume of purchase refers to the quantity of goods or services being procured.

• China sourcing strategy details involve the approach and methods used to procure goods or services from China.

• Examples of China sourcing strategies include direct sourcing from manufacturers, utilizing local agents or distributors, or participating in trade fairs and exhibitions.

• The volume of purchase and C...read more

GST stands for Goods and Services Tax, a consumption tax levied on the supply of goods and services in India.

• GST is a value-added tax levied on most goods and services sold for domestic consumption.

• It is a single tax that subsumes various indirect taxes like service tax, VAT, excise duty, etc.

• GST is set off against the input tax credit available on the purchase of goods and services.

• Businesses can claim input tax credit on the GST paid on their purchases to reduce their tax l...read more

Inventory is the stock of goods and materials held by a business for production or resale.

• Inventory includes raw materials, work-in-progress, and finished goods.

• Effective inventory management involves forecasting demand, setting reorder points, and monitoring stock levels.

• Inventory turnover ratio is a key metric to measure how quickly inventory is sold and replaced.

• Just-in-time inventory management aims to minimize inventory levels and reduce storage costs.

• Inventory managemen...read more

Supply chain problems can arise due to various factors such as demand fluctuations, transportation delays, and supplier issues.

• Demand fluctuations can lead to overstock or stockouts, impacting inventory management.

• Transportation delays can result in late deliveries, affecting production schedules.

• Supplier issues like quality control or communication gaps can disrupt the supply chain flow.

Purchase is the act of buying goods or services in exchange for money or other forms of payment.

• Purchase involves acquiring goods or services in exchange for money or other forms of payment

• It is a transaction between a buyer and a seller

• The buyer receives the goods or services in return for payment

• Examples: buying groceries at a supermarket, purchasing a new phone online