Supply Chain Management Interview Questions and Answers in 2025 (100+ Q&A)

Ques:- What is Sales and Operations Planning (S&OP) process and what are the advantages of S&OP process ?

Asked In :- Shipmnts, CommScope Inc, Gujarat Alkalies and Chemicals GACL, JK Paper, Kansai Nerolac Paints, PRAN-RFL, Yazaki, Macleods Pharma, Mettler-Toledo, GRSE,

Right Answer:
Sales and Operations Planning (S&OP) is a process that aligns a company's sales and production plans to ensure that supply meets demand. It involves collaboration among various departments, including sales, marketing, production, and finance, to create a unified plan.

Advantages of the S&OP process include:
1. Improved forecast accuracy.
2. Better inventory management.
3. Enhanced collaboration across departments.
4. Increased responsiveness to market changes.
5. Optimized resource allocation.
6. Higher customer satisfaction through better service levels.

Supply Chain Management

Ques:- What are the GL postings in procure to pay cycle?

Asked In :- Atigo Electronics India, Shipmnts, Avery Dennison (India), Norfolk Southern Corp, AB InBev, Alfanar, Kansai Nerolac Paints, Manali Petrochemicals, Dabur India, Borosil Glass Works,

Right Answer:
The GL postings in the procure-to-pay cycle typically include:

1. **Purchase Order Creation**: No GL impact at this stage.
2. **Goods Receipt**: Debit Inventory/Expense account, Credit Goods Receipt/Inventory account.
3. **Invoice Receipt**: Debit Expense/Inventory account, Credit Accounts Payable.
4. **Payment Processing**: Debit Accounts Payable, Credit Cash/Bank account.

Supply Chain Management

Ques:- Explain Procure to Pay to Pay cycle?

Asked In :- Vestas Wind Technology India, Atigo Electronics India, Bobst India, Hinduja Tech, Shipmnts, Shakti Pumps, AB InBev, Hindustan Unilever, Kohler India, Shree Cement,

Right Answer:
The Procure to Pay (P2P) cycle is the process that involves the steps from purchasing goods or services to making the payment for them. It typically includes the following stages:

1. **Need Identification** - Recognizing the need for a product or service.
2. **Supplier Selection** - Choosing a supplier based on criteria like price and quality.
3. **Purchase Order Creation** - Issuing a purchase order to the selected supplier.
4. **Order Acknowledgment** - Supplier confirms receipt and acceptance of the order.
5. **Goods/Services Receipt** - Receiving the ordered items or services.
6. **Invoice Receipt** - Receiving the invoice from the supplier.
7. **Invoice Approval** - Verifying and approving the invoice for payment.
8. **Payment Processing** - Making the payment to the supplier.

This cycle ensures efficient procurement and payment management within an organization.

Supply Chain Management

Ques:- What are the different Inventory analysis ? How do you do ABC, XYZ and FSN analysis?

Asked In :- Cummins India, Haldiram, Kohler India, Mahle Filter Systems, Tata Marcopolo, Dabur India, Godrej Consumer Products, M N Dastur & Co (P), Perfetti Van Melle India, HLS Asia,

Right Answer:
The different types of inventory analysis include:

1. **ABC Analysis**: This method categorizes inventory into three classes (A, B, and C) based on their importance.
- A items are high-value but low-quantity (typically 70-80% of value).
- B items are moderate in both value and quantity.
- C items are low-value but high-quantity (typically 10-20% of value).
The analysis is done by calculating the annual consumption value of each item and ranking them accordingly.

2. **XYZ Analysis**: This method classifies inventory based on demand variability.
- X items have stable demand.
- Y items have moderate variability in demand.
- Z items have highly variable or unpredictable demand.
The analysis is performed by assessing the demand pattern of each item over a specific period.

3. **FSN Analysis**: This categorizes inventory based on the movement of items.
- F (Fast-moving)

Supply Chain Management

Ques:- What do you understand by Supply Chain Management?

Asked In :- FourKites, CaratLane, Shipmnts, CommScope Inc, Kaynes Technology Inc, Aarti Industries, Bharat Serums and Vaccines, Jayaswal Neco Industries, Levis, Lotte Chemical Titan,

Right Answer:
Supply Chain Management (SCM) is the process of planning, executing, and controlling the flow of goods, services, and information from the point of origin to the end customer, ensuring efficiency and effectiveness in meeting customer demands.

Supply Chain Management

Ques:- Explain demand planning process you have handled or handling?

Asked In :- BPCL Bharat Petroleum, Jayaswal Neco Industries, Kazi Farms, Kirloskar, Maharashtra Industrial Development Corporation MIDC, MOL, NDDB, Thirumalai Chemicals, Loblaw Companies, Exide Industries,

Right Answer:
The demand planning process I handle involves several key steps:

1. **Data Collection**: Gather historical sales data, market trends, and customer insights.
2. **Forecasting**: Use statistical methods and tools to predict future demand based on the collected data.
3. **Collaboration**: Work with sales, marketing, and production teams to align forecasts with business strategies.
4. **Review and Adjust**: Regularly review forecasts against actual sales and adjust plans as necessary.
5. **Implementation**: Communicate the demand plan to relevant stakeholders to ensure alignment in inventory and production planning.
6. **Monitoring**: Continuously monitor demand patterns and market changes to refine future forecasts.

Supply Chain Management

Ques:- Explain complete supply chain cycle starting from Business Planning to Sales and including procurement(for MTO and MTS environment)?

Asked In :- FourKites, Saint-Gobain Glass India, Britannia, CTPS, Dashen Brewery, Ethiopian Maritime, FlowServe, GSFC, LMW Lakshmi Machine Works, LT Foods,

Right Answer:
The complete supply chain cycle includes the following steps:

1. **Business Planning**: Define overall business goals, demand forecasts, and inventory strategies.
2. **Demand Planning**: Analyze market trends and customer needs to create accurate demand forecasts.
3. **Procurement**: Source raw materials and components based on demand forecasts. This can vary for Make-to-Order (MTO) and Make-to-Stock (MTS):
- **MTO**: Procure materials only after receiving customer orders.
- **MTS**: Procure materials in advance to maintain stock for anticipated demand.
4. **Production Planning**: Schedule and plan production activities based on demand and inventory levels.
5. **Manufacturing**: Produce goods according to the production plan, ensuring quality and efficiency.
6. **Inventory Management**: Monitor and manage inventory levels to balance supply with demand, minimizing excess stock or shortages.
7. **Distribution**: Plan and execute the transportation of finished goods to warehouses

Supply Chain Management

Ques:- Explain the Vendor rating process?

Asked In :- Vestas Wind Technology India, Medline Industries India, Exxaro, GSFC, Hindustan Unilever, Kohler India, KSBC, Mahle Filter Systems, NDDB, TFT,

Right Answer:
The vendor rating process involves evaluating and scoring suppliers based on specific criteria such as quality, delivery performance, pricing, and service. This typically includes the following steps:

1. **Define Criteria**: Establish the metrics for evaluation (e.g., quality, delivery time, cost, responsiveness).
2. **Data Collection**: Gather data on vendor performance through reports, feedback, and audits.
3. **Scoring**: Assign scores to vendors based on their performance against the defined criteria.
4. **Analysis**: Analyze the scores to identify strengths and weaknesses of each vendor.
5. **Feedback**: Provide feedback to vendors regarding their performance.
6. **Action Plan**: Develop improvement plans for underperforming vendors and recognize top performers.
7. **Review and Update**: Regularly review and update the rating process to ensure it remains relevant and effective.

Supply Chain Management

Ques:- What are the risks in procurement. How do you minimize these risks?

Asked In :- SPX FLOW, Kaynes Technology Inc, Bisleri, BYD Electronic, ChemBiotech, Gharda Chemicals, GSFC, Hindalco, ITC Indian Tobacco Company, Kohler India,

Right Answer:
The risks in procurement include supplier reliability, price volatility, quality issues, compliance risks, and geopolitical factors. To minimize these risks, you can:

1. Conduct thorough supplier evaluations and audits.
2. Diversify your supplier base to avoid dependency.
3. Establish clear contracts with defined terms and conditions.
4. Monitor market trends and price fluctuations.
5. Implement quality control measures and regular inspections.
6. Stay informed about regulatory changes and compliance requirements.
7. Build strong relationships with suppliers for better communication and collaboration.

Supply Chain Management

Ques:- How do you search a supplier

Asked In :- FourKites, Ford India, Ecom Express, Akij, Bharat Forge, Bharat Serums and Vaccines, Empower, ETO, Pricol, Torrent Pharma,

Right Answer:
To search for a supplier, you can follow these steps:

1. Define your requirements (products, services, quality, etc.).
2. Use online directories and platforms (like Alibaba, ThomasNet, or industry-specific sites).
3. Attend trade shows and industry events to network.
4. Ask for recommendations from industry contacts or colleagues.
5. Utilize social media and professional networks (like LinkedIn).
6. Evaluate potential suppliers based on their reputation, reviews, and certifications.
7. Request quotes and compare pricing and terms.

Operations Manager Supply Chain Management

Ques:- Define logistics?

Asked In :- CaratLane, BYD Electronic, D-Mart, India Cements, Jayaswal Neco Industries, JK Paper, Kohler India, Lava International, Levis, P&G Procter Gamble,

Right Answer:
Logistics is the process of planning, implementing, and controlling the efficient movement and storage of goods, services, and information from the point of origin to the point of consumption.

Operations Manager Supply Chain Management

Ques:- How do you negotiate with a supplier and what could be the negotiation points during negotiation process?

Asked In :- CommScope Inc, Shakti Pumps, Agro Tech, Alfanar, Doha Petroleum Construction DOPET, Engro, JK Paper, Kraft Heinz, Mann Hummel, P&G Procter Gamble,

Right Answer:
To negotiate with a supplier, follow these steps:

1. **Preparation**: Research the supplier's market position, pricing, and alternatives.
2. **Establish Goals**: Define your objectives, such as price reduction, better payment terms, or improved delivery schedules.
3. **Build Relationships**: Foster a positive rapport with the supplier to facilitate open communication.
4. **Identify Key Points**: Focus on negotiation points such as:
- Price per unit
- Payment terms (e.g., net 30, net 60)
- Delivery schedules and lead times
- Quality standards and guarantees
- Volume discounts or bulk pricing
- Flexibility in order quantities
- Support and service levels
5. **Listen Actively**: Understand the supplier's needs and constraints to find mutually beneficial solutions.
6. **Be Willing to Compromise**: Identify areas where you can give in to achieve your primary goals.
7. **Document Agreements**:

Operations Manager Supply Chain Management

Ques:- Given an upcoming product release, how would you solve supply constraints and expand a supplier base?

Asked In :- Daimler India Commercial Vehicles, Alfanar, Fitter, ITC Indian Tobacco Company, Manali Petrochemicals, Yazaki, Bhavna, Varun Beverages, Daimler, Tube Investments of India,

Right Answer:
To solve supply constraints and expand the supplier base for an upcoming product release, I would:

1. Assess current suppliers to identify capacity limitations.
2. Engage with existing suppliers to negotiate increased production or prioritize our orders.
3. Research and identify potential new suppliers who can meet our quality and capacity requirements.
4. Evaluate new suppliers through a rigorous vetting process, including quality checks and financial stability assessments.
5. Establish relationships with multiple suppliers to diversify risk and ensure a steady supply.
6. Consider alternative materials or components that could alleviate constraints.
7. Implement a demand forecasting system to better align supply with anticipated needs.
8. Maintain open communication with all suppliers to monitor capacity and adjust plans as necessary.

Operations Manager Supply Chain Management

Ques:- How do you manage stock out situations?

Asked In :- CaratLane, Jindal Aluminium, Agro Tech, Akij, Bapco Bahrain Petroleum Company, BPCL Bharat Petroleum, D-Mart, Ethiopian Maritime, Manali Petrochemicals, NDDB,

Right Answer:
To manage stock-out situations, I first analyze the cause of the stock-out, then communicate with suppliers to expedite restocking. I also assess inventory levels regularly to forecast demand accurately, implement safety stock levels, and explore alternative sourcing options. Additionally, I keep customers informed about delays and offer substitutes when possible to maintain satisfaction.

Operations Manager Supply Chain Management

Ques:- What are the GL postings in Stock revaluation and stock adjustment transactions?

Asked In :- SPX FLOW, Becton Dickinson India, Shakti Pumps, Bharat Forge, Cadbury, Century Ply, jusco, Lava International, LT Foods, MOL,

Right Answer:
In stock revaluation, the GL postings typically involve adjusting the inventory account to reflect the new value of the stock, along with a corresponding entry to a revaluation surplus or expense account. In stock adjustment transactions, the GL postings usually involve adjusting the inventory account for the quantity change and reflecting any gain or loss in the appropriate expense or income account.

Operations Manager Supply Chain Management

Ques:- Tell me a situation when you negotiated with a vendor successfully.

Asked In :- Shipmnts, Engro, Ethiopian Maritime, Haldiram, Hindalco, Mann Hummel, Alembic Pharmaceutical, SMC Pneumatics, TATA Advanced Materials, Anand Automotive,

Right Answer:
In my previous role, I needed to reduce costs for a key supplier while maintaining quality. I researched market prices and presented data to the vendor, highlighting our long-term partnership. After discussions, we agreed on a 10% discount for a bulk order, which saved us money and strengthened our relationship.

Operations Manager Supply Chain Management

Ques:- What is Planning horizon and how does it impact MRP and MPS run results ?

Asked In :- Shure, Britannia, Reece Group, LogiNext Solutions, Bhavna, Godrej Agrovet, Fynd, SMC Pneumatics, Jotun Paints, Ashoka Buildcon,

Right Answer:
The planning horizon is the period over which planning and forecasting are done, typically covering future demand and supply needs. It impacts Material Requirements Planning (MRP) and Master Production Schedule (MPS) run results by determining how far into the future inventory levels, production schedules, and resource allocations are planned. A longer planning horizon allows for better anticipation of demand and resource needs, while a shorter horizon may lead to stockouts or excess inventory due to insufficient foresight.

Operations Manager Supply Chain Management

Ques:- How do you fix the credit limits of the customers (Distributors, Dealers)

Asked In :- Saint-Gobain Glass India, Cadbury, CTPS, Empower, India Cements, Kirloskar, Kirloskar Ferrous Industries, KSBC, LMW Lakshmi Machine Works, Maharashtra Industrial Development Corporation MIDC,

Right Answer:
To fix the credit limits of customers (distributors, dealers), analyze their credit history, payment behavior, sales volume, financial stability, and industry risk. Use this data to set limits that balance risk and sales potential, ensuring they align with company policies and market conditions. Regularly review and adjust limits based on performance and changes in their financial situation.

Operations Manager Supply Chain Management

Ques:- What the normal terms and conditions in a agreement while signing it with a supplier?

Asked In :- Shipmnts, Jindal Aluminium, Saint-Gobain Glass India, ChemBiotech, D-Mart, Fitter, Hindustan Unilever, jusco, MOL, Mother Dairy,

Right Answer:
Normal terms and conditions in an agreement with a supplier typically include:

1. **Scope of Work**: Description of goods/services provided.
2. **Pricing and Payment Terms**: Cost, payment schedule, and methods.
3. **Delivery Terms**: Delivery dates, locations, and responsibilities.
4. **Quality Standards**: Specifications and quality requirements.
5. **Warranties and Guarantees**: Assurance of product/service quality.
6. **Confidentiality**: Protection of sensitive information.
7. **Termination Clause**: Conditions under which the agreement can be ended.
8. **Liability and Indemnification**: Responsibilities for damages or losses.
9. **Dispute Resolution**: Process for resolving conflicts.
10. **Compliance with Laws**: Adherence to relevant laws and regulations.

Supply Chain Management

Ques:- What is in-transit inventory and how it is calculated, how do you monitor in-transit inventory levels?

Asked In :- Kaynes Technology Inc, Bapco Bahrain Petroleum Company, ChemBiotech, Gujarat Alkalies and Chemicals GACL, JK Lakshmi Cement, P&G Procter Gamble, Pricol, TFT, Godfrey Phillips India, Borosil Glass Works,

Right Answer:
In-transit inventory refers to goods that have been shipped by a supplier but have not yet been received by the buyer. It is calculated by tracking the quantity of items that are currently being transported, which can be determined by the shipping documents and the expected delivery times. To monitor in-transit inventory levels, companies can use inventory management systems that provide real-time updates on shipment statuses, track delivery schedules, and analyze transportation lead times.

Supply Chain Management (SCM) is a comprehensive and strategic discipline that oversees the entire network of businesses and activities involved in getting a product or service to the end customer. It is a critical function for any organization, as it coordinates and integrates every stage of the process, ensuring a seamless and efficient flow of resources, information, and funds. SCM is far more than just logistics; it is an integrated approach that connects all parties—suppliers, manufacturers, distributors, and retailers—to work in harmony.

The main components of a supply chain typically include:

Procurement and Sourcing: This initial phase involves the strategic selection of suppliers and the purchasing of raw materials, parts, and components. A key goal here is to secure high-quality materials at the best possible price and to build strong, reliable relationships with suppliers.
Manufacturing and Production: This involves the transformation of raw materials into finished goods. SCM ensures that production processes are efficient, inventory levels are optimized, and quality control standards are met to produce goods that meet customer demand.
Logistics and Distribution: This is the physical movement of products. It includes warehousing (storage), inventory management (tracking stock levels), and transportation (shipping products to distribution centers, retail stores, or directly to consumers). Effective logistics is essential for timely and cost-effective delivery.
Sales and Customer Service: The final stage of the supply chain ensures the product reaches the customer and the customer’s needs are met. Feedback from this stage is crucial, as it informs future supply chain decisions, from product design to procurement.

The primary goal of SCM is to create a competitive advantage by maximizing value for the customer while minimizing costs. A well-managed supply chain can reduce operational expenses, improve product quality, and increase speed to market. In today’s globalized and technology-driven world, SCM has become even more complex, with businesses leveraging advanced analytics, AI, and IoT (Internet of Things) to forecast demand, track shipments in real-time, and manage risks more effectively. Ultimately, a robust supply chain is the backbone of a successful business, ensuring its ability to operate profitably and deliver on its promises to the customer.

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