Procurement Interview Questions and Answers

Freight terms refer to the agreed-upon conditions between the buyer and seller regarding the transportation of goods.

• Freight terms determine who is responsible for the cost and risk of transporting goods.

• Common freight terms include FOB (Free on Board), CIF (Cost, Insurance, and Freight), and EXW (Ex Works).

• FOB means the seller is responsible for the goods until they are loaded onto the shipping vessel, while CIF means the seller is responsible for the goods until they reach ...read more

Incoterms are a set of standardized trade terms used in international commercial transactions.

• Incoterms define the responsibilities of buyers and sellers in terms of transportation, insurance, and customs clearance.

• They also determine the point at which risk and responsibility transfer from the seller to the buyer.

• Examples of Incoterms include FOB (Free on Board), CIF (Cost, Insurance and Freight), and EXW (Ex Works).

P2P process refers to the procurement process from purchase requisition to payment.

• The process starts with a purchase requisition from the requester.

• The requisition is then approved by the appropriate authority.

• A purchase order is created and sent to the supplier.

• Goods or services are received and inspected.

• An invoice is received and matched with the purchase order and receipt.

• Payment is made to the supplier.

• The process ends with the recording of the transaction in the financ...read more

P2P process is the procurement process from purchase requisition to payment.

• Purchase requisition is created

• Purchase order is generated and sent to supplier

• Goods or services are received and inspected

• Invoice is received and matched with purchase order and goods receipt

• Payment is made to supplier