Purchase Engineer Interview Questions and Answers for Freshers

P to P cycle in purchasing refers to Procure to Pay cycle which involves the entire process of purchasing goods or services.

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

• Then, a purchase requisition is created and sent for approval.

• Once approved, a purchase order is generated and sent to the supplier.

• The supplier delivers the goods or services and an invoice is received.

• The invoice is verified and approved for payment.

• Finally, payment is made to the supp...read more

DAP stands for Delivered at Place. It is an international trade term used in shipping and logistics.

• DAP is a type of Incoterm, which is a set of standardized trade terms used in international transactions.

• It means that the seller is responsible for delivering the goods to a specified location, usually a port or warehouse.

• The buyer is responsible for all costs and risks associated with the goods from the point of delivery.

• DAP can be used for any mode of transportation, includi...read more

Procurement is the process of acquiring goods or services from external sources.

• Identifying the need for goods or services

• Selecting suppliers

• Negotiating contracts

• Placing orders

• Tracking delivery and payment

• Managing supplier relationships

• Ensuring quality and compliance

• Optimizing costs

• Examples: purchasing raw materials for manufacturing, hiring a contractor for construction work, buying office supplies for a company

Planning of materials involves forecasting, procurement, and inventory management.

• Forecasting demand for materials based on production schedules and sales forecasts

• Procuring materials from approved suppliers at competitive prices

• Managing inventory levels to ensure availability of materials while minimizing excess stock

• Collaborating with production and logistics teams to ensure timely delivery of materials

• Implementing systems and processes to track material usage and optimize ...read more