10+ Senior Executive SCM Interview Questions and Answers

Incorerm is not a known term in supply chain management.

Supplier rating is the process of evaluating and ranking suppliers based on their performance and capabilities.

• Supplier rating involves assessing various factors such as quality, delivery, cost, and responsiveness.

• The ratings are typically based on a numerical or letter scale, with higher scores indicating better performance.

• Supplier ratings can help organizations identify areas for improvement and make informed decisions about which suppliers to work with.

• Considerations in s...read more

Minimum, maximum and safety stock are defined based on demand, lead time, and desired service level.

• Minimum stock is defined as the lowest level of inventory required to meet demand during lead time.

• Maximum stock is defined as the highest level of inventory that can be held without incurring excessive costs.

• Safety stock is defined as the buffer stock held to mitigate the risk of stockouts due to demand variability or lead time uncertainty.

• The levels of minimum, maximum, and s...read more

Schedules are communicated to suppliers through a combination of electronic communication and regular meetings.

• Use electronic communication tools such as email and online portals to share schedules with suppliers.

• Hold regular meetings with suppliers to discuss upcoming schedules and any changes that may need to be made.

• Ensure that schedules are clear and detailed, including information on quantities, delivery dates, and any special requirements.

• Work closely with suppliers to ...read more

Supply and meet customer requirements should be prioritized over 100% SCH.

• Customer satisfaction is key to business success.

• Focusing solely on SCH may lead to excess inventory and waste.

• Supply chain should be flexible to adapt to changing customer demands.

• Examples: Fast fashion industry, Just-in-time manufacturing.

I establish strong communication channels and build trust through regular meetings and visits to ensure timely delivery and quality products.

• Establish clear communication channels

• Build trust through regular meetings and visits

• Ensure timely delivery and quality products

• Understand cultural differences and adapt accordingly

• Negotiate favorable terms and conditions

• Maintain a good relationship even during disputes

Excess purchase/inventory control is crucial for SCM success.

• Implement a robust inventory management system

• Analyze demand patterns and forecast accurately

• Set up a system for regular inventory audits

• Establish clear communication channels with suppliers

• Implement a system for returns and exchanges

• Monitor inventory turnover ratio and adjust ordering accordingly

Procurement can be done through a strategic process of identifying needs, selecting suppliers, negotiating contracts, and managing relationships.

• Identify the goods or services needed

• Research and select potential suppliers

• Negotiate terms and conditions with chosen suppliers

• Create and sign a contract with the supplier

• Manage the relationship with the supplier to ensure quality and timely delivery

• Monitor and evaluate supplier performance

• Continuously improve the procurement proces...read more

Supplier audit involves evaluating supplier performance and compliance with established standards.

• Define audit criteria and standards

• Conduct on-site visits and inspections

• Review supplier documentation and records

• Assess supplier performance and identify areas for improvement

• Develop corrective action plans and monitor progress

• Maintain open communication with suppliers

• Ensure compliance with legal and ethical standards

• Use technology to streamline audit process

ITR stands for Inventory Turnover Ratio, which measures how quickly a company sells and replaces its inventory.

• ITR is a financial metric used to evaluate the efficiency of inventory management.

• It is calculated by dividing the cost of goods sold by the average inventory value.

• A high ITR indicates that a company is selling its inventory quickly and efficiently.

• A low ITR may indicate that a company is holding too much inventory or is not selling its products effectively.

• ITR can ...read more

My best achievement in supply chain management was implementing a vendor managed inventory system resulting in a 30% reduction in inventory holding costs.

• Implemented a vendor managed inventory system

• Achieved a 30% reduction in inventory holding costs

• Improved inventory accuracy and reduced stockouts

• Streamlined the procurement process and improved supplier relationships