Procurement Buyer Interview Questions and Answers

Buying refers to the process of acquiring goods or services for a business or organization.

• Lead time is the amount of time it takes for a supplier to deliver goods after an order is placed.

• Safety stock is the extra inventory a company keeps on hand to ensure they don't run out of a product.

• Buying involves negotiating prices, selecting suppliers, and managing relationships with vendors.

• Effective buying can help a company reduce costs, improve quality, and increase efficiency.

AP GL entries refer to the accounting entries made in the accounts payable general ledger for all three categories.

• AP GL entries are made for all three categories: goods, services, and expenses.

• These entries are made to record the financial transactions related to accounts payable.

• Examples of AP GL entries include recording the receipt of an invoice, recording the payment of an invoice, and recording any adjustments made to the accounts payable balance.

P2P cycle is the process of procuring goods or services from a supplier and paying for them.

• The cycle starts with identifying the need for a product or service

• Then, a purchase requisition is created and sent to the procurement team

• The procurement team selects a supplier and creates a purchase order

• The supplier delivers the goods or services and sends an invoice

• The invoice is matched with the purchase order and goods receipt

• Payment is made to the supplier

• The cycle ends with re...read more

MRP stands for Material Requirements Planning, a system used to plan and control inventory levels and production schedules.

• MRP helps to ensure that materials and products are available when needed for production.

• It involves creating a master production schedule, determining the materials needed for production, and scheduling their delivery.

• MRP can also help to identify potential shortages and allow for adjustments to be made to production schedules.

• Examples of MRP software in...read more