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supply chain interview questions
25 Oct

Top 35 Supply Chain Interview Questions and Answers

The pandemic has played a large part in bringing the term ‘supply chain’ into the public domain and consciousness. More and more people from all walks of life have been exposed to this phrase in the news and media recently due to the issues with the supply chain in delivering everyday essentials that have affected almost everyone somehow. There are more supply chain jobs than ever, hence a need for Supply Chain Interview Questions and Answers.

 

Are you ready for your next supply chain interview? Knowing what to expect can help you prepare and ensure you have answers to the most common questions. With this list of 35 essential questions and answers, you’ll be confident in your knowledge and prepared to ace the interview!

 

Having received many messages on LinkedIn asking for mentoring and coaching to help gain a competitive edge, what better way than to compile a list of the most frequently asked supply chain management interview questions?

 

Why should you read this blog?

 

My intention in this blog is to:

  • Provide knowledge-based questions and answers from the generic, yet essential, ‘Define your understanding of Supply Chain’ to…
  • ..the more common technical supply chain behavioral interview questions
  • provide a broad range of Q & A to help all, from the novice looking to come into this field to experts looking to further their positions.
  • Answers you can tailor to the specific company you are applying with.
  • Provide ‘Further reading’ links to further help broaden your knowledge base to the answers provided.

 

Now, without further ado, here you will find my top 35 questions with tailored answers:

If you are looking for Top Tips on How to Prepare for your interview, you must watch Top Tips from Top Supply Chain Recruiter below!

 

The Basic / Generic Supply Chain Interview Questions:

 

1. Define Supply Chain Management (or SCM).

 

What the hiring company is looking for:

 

  • Mention keywords such as supply chain, process, conversion

 

Answer:

 

Supply Chain Management oversees and manages the complete production flow of the supply chain required to convert the raw materials acquired to the delivery of the requested final product.

 

Further reading:

Check this video out, as explained by a 10-year-old!

 

Download Free Supply Chain KPIs Cheat Sheet PDF

 

2. Why do we need Supply Chain Management? / What is the importance of Supply Chain Management?

 

What the hiring company is looking for (Keywords):

 

  • Streamline, efficiency, and delivery with profitability

 

Answer:

 

Supply chain management (SCM) is the active management of supply chain activities to maximize customer value and profitability by achieving efficient and effective operating procedures and achieve sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.

 

3. Tell us some of the essential skills required to be successful in Supply chain Management

 

What the hiring company is looking for:

 

  • This question very much is your chance to show off the transferable skills that you will bring to the company.

 

Answer:

 

What do you understand of the components of the supply chain, i.e. speak about Planning, Sourcing, producing, delivering, and return? This should allow you to talk about:

  • A time when you have project managed at your previous employment – include showing understanding of financing and knowledge of logistics
  • Understand global and cultural issues, e-business and e-procurement systems
  • Problem-solving skills developed through your experience or supply chain management training

 

4. How can you add value to a business with your experience and competencies?

 

What the hiring company is looking for:

 

  • Understanding of business requirements
  • Show why you would be competent in the job

 

Answer:

 

Do your research – what is the product of the company you are interviewing for?
Tie in by providing examples of when you may have been asked to create innovative strategies to sell slow-moving products; give specific examples.

What else have you contributed to that shows initiative taking and using your creativity and vision?

 

Further reading:

 

 

5. Why is forecasting important, and what methods do you know?

 

What the hiring company is looking for:

 

  • Strategic planning, budgeting, risk assessment, short & long-term demand forecasting

 

Answer:

 

Forecasting is to plan i.e. forecast and facilitate critical business processes such as financial budgeting, raw material, and product planning, etc. to produce long and short-term plans of the next steps for the business to grow in the most cost-effective and time-efficient manner.

 

Further reading:

 

The following blogs & Guides will help you answer this question

The Ultimate Guide to Demand Forecasting

5 Quick and Remarkable Tips to Improve Forecasting Accuracy

Importance of Demand Forecasting in Supply Chain- 9 Authentic Reasons

24 Excel Tips & Tricks to Becoming a Supply Chain Nomad

 

Technical Supply Chain Management Interview Questions – Your Experience:

 

6. Provide an example in time where you contributed to innovate in either products or services supply chain to accelerate your company sales growth.

 

What the hiring company is looking for:

 

  • Again, this is your chance to show off your transferable skills in action from your last employment.

 

Example Answers:

 

Have you improved customer engagement by introducing better social media engagement? Can you show evidence of a correlation between this and an increase in sales?

You could argue this is not a supply chain job, but companies these days are eager to find individuals who are keen to contribute and collaborate with other functions.

 

Further reading:

 

A good reference point to answer this question you should refer to my blog 10 Supply Chain Improvement Tools You Should Know About

 

7. What are the different materials and capacity planning levels you have been involved with, and how? (Also recommend for supply chain planner interview questions)

 

What the hiring company is looking for:

 

  • Show understanding of the meaning, classification, and goal of capacity planning.

 

Definition / Answer:

 

Capacity planning aims to provide manufacturers with a guide on the number of raw materials and thus equipment, labor, and investment required to meet and optimize the current and future (short/long-term) demands of their product or services with minimal waste.

Once defined, provide a bespoke example of what you have done that demonstrates this.

 

Further Reading:

 

As a manager, we have been suddenly confronted with an array of new systems to improve production efficiency. This depends on the materials requirements, planning, or optimized production technology. My article on Supply Chain Planning – 5 Levels of Time Horizon and Complexity Hierarchy could be a good reference point.

Furthermore, 5 Things to Consider When Doing Capacity Planning for S&OP is a must-watch video content.

 

8. How have you leveraged the conflicting Manufacturing/Planning/Financial objectives in your past experiences?

 

What the hiring company is looking for:

 

  • Conflict resolution ability

 

Further Reading:

 

The answer to this question in a detailed explanation of MRP, MPS, SIOP, and Supply Chain Planning – 5 Levels of Time Horizon and Complexity Hierarchy

I strongly recommend taking my course on How to Run an S&OP Process – Benefits, Process Steps & Overcome Barriers, as the S&OP process is a tried and tested process to align and collaborate with a different function to achieve singular business strategy and goals.

 

S&OP Course

 

9. What can you say about technology development projects, and are the results obtained compelling enough?

 

What the hiring company is looking for:

 

  • Understanding of technology development projects, innovation

 

Answer:

 

You can explain about Evolution of Logistics & Supply Chain Management from a function that was responsible for physical distribution and planning and now rapid growth of technology has led to advances in the supply chain and, in particular, the digital supply chain. As the century unfolds, we see a more joined-up supply chain with efficient, robust, and technologically advanced systems integration.

 

Further Reading:

 

You should take this course in Supply Chain Digitalization. You will learn about the definition, success factors, barriers, and digitalization impact.

Also, you can self-assess yourself using supply chain digitalization self-assessment.

 

10. Have you an experience with both downstream (customer/client) and upstream (supplier), and what did you do?

 

What the hiring company is looking for:

 

  • Understand upstream – all activities/everything coming in from the supplier, e.g. raw materials to the final product, information/communication flow between you and your supplier(s)
  • Understand the downstream – distribution of the final product to the consumer -consumer-focused.

 

Answer:

 

Supply chain management is managing the upstream and downstream communication/information flow between the business and its suppliers and clients.

The aim is to deliver the best consumer value at a low cost to the supply chain without reducing the product’s value or delivery.

 

11. How have you supported your company’s improvement in cost efficiency through long-term supplier relationships?

 

What the hiring company is looking for:

 

  • Example(s) with evidence, acknowledgment of achievement via appraisal

 

Answer:

 

The following blog will help you answer this question

 

10 Must-Have Customer-Supplier Relationship Areas – How Many You Have?

6 STEPS TO INTENSIFY BUYER-SUPPLIER RELATIONSHIP

27 Uplifting Cost Reduction Strategies You Should Try

 

Technical Supply Chain Analyst Questions – Your Knowledge

 

12. We have several ways to understand Material Requirements Planning (MRP). As a newcomer to the procurement & supply chain, what technical skills are needed? Can you describe an approach for setting safety stock levels and what should go into that?

 

What the hiring company is looking for:

 

 

Answer:

 

I think this one is the most frequently asked supply chain interview question. Here is a brief explanation:

Problem-solving, accurate data analyzing and inputting, and excellent communication are the key traits along with inventory management experience as MRPs are planning and decision-making tools. But, for it to be effective and of use, the data you input must be accurate – what you put in is what you get out, therefore, attention to detail and understanding data is imperative.

 

13. Which training can you recommend to improve a manager’s professional skills and capabilities?

 

What the hiring company is looking for:

 

 

Answer:

 

Again, communication and trust is the key. There can be courses that can be recommended for self-improvement and confidence.

Building trust with an open-door policy will go a long way to maintaining strong communication with colleagues.

 

Further Reading – training courses/information:

 

The following blog will help you answer this question

 

Courses on SCMDOJO Academy

13 Operations Management Books Every Supply Chain Professional Should Read

20 Best Supply Chain Blogs and Websites You Should Follow

Business Acumen Skills – Top 18 You Should Master will help you answer this question. 

 

14. Is there a fixed number of Stock Keeping Units (SKUs) that a person can manage, directly or indirectly? How would you manage the capacity to work under pressure, tight timelines, sense of urgency and priorities, and how do you deliver cross-functional projects and capacity to influence stakeholders?

 

What the hiring company is looking for:

 

  • Essentially, understand what makes an effective supply chain manager
  • Creating a process (Standard Operating procedure) that is easy to memorize with minimal confusion

 

Answer:

 

The first thing would be to make clear your understanding of SKUs and the need to have a code system in place to log and track products most simply.

SKUs are scannable bar codes that allow easy tracking of a product – create one that avoids using letters and numbers that can be mistaken for one another i.e. 6 and 9 can be mistaken for each other depending on which way round you are looking at the barcode on the product – shows an understanding of awareness of common mistakes as well as a preventative measure to stop extra work and pressure. Group similar products into classes/groups.

Create an SOP that will consider as many of the variables and range of products that are in your inventory.

 

Further reference material:

 

Watch 8 Habits of a Highly Effective Supply Chain Manager could help you formulate a response incorporating all the necessary skills to be successful.

This blog, Top 10 Steps for SOP for Your Supply Chain Operations, will help you understand how to create SOPs in the supply chain.

 

15. Explain with example your knowledge about MS Excel and ERP

 

What the hiring company is looking for:

 

Importance of Excel skills, regardless of technological advancement, understanding and proficiency in MS Excel are imperative. And further knowledge of ERP systems (preferably the most used ones such as SAP, Oracle, or Microsoft Dynamics.

 

Answer:

 

The Supply Chain Management environment requires artistic vision, brainstorming, and inventiveness. However, if you are a supply chain management professional, you should know the Excel Tips & Tricks mentioned in this blog.

The use of Excel Tips & Tricks forms a major part of this daily picture. A good portion of your job as a Supply Chain Professional goes into evaluating data and examining budgets and statistics. All these activities imply spending a considerable period of useful time on the Excel spreadsheet environment.

 

Further Reading:

 

Following blogs on ERP will help you significantly to answer any supply chain analyst interview questions.

16. What is your insight on determining approved vendors/ suppliers/ manufacturers and how they would measure quality.”

 

What the hiring company is looking for:

 

Appreciation of the importance of suppliers and vendors to a business

 

Answer:

 

The possible answer is it makes no difference what business you are in; suppliers and vendors play a key role in your company’s success. Having a formalized system in place to track, audit, and evaluate supplier and vendor performance is essential to the smooth operation and profitability of your company.

Successful companies embrace their suppliers and vendors, viewing them as partners in helping to grow the business. Making sure that this is a mutually beneficial partnership will impact the price you are negotiating today and the quality of service you get in the future. If a supplier/vendor is a key part or service to your operation invite that supplier or vendor to strategic meetings that involve the product they work with.

A common mistake companies make is to have a combative relationship with their suppliers and vendors. That is the opposite of what you want to do, which is make custom stainless-steel metal baskets, brackets, and other parts. A lot of companies will have an adversarial relationship where they hire purchasing people who have brass knuckles and try to beat up on vendors to get better prices or better terms. Instead of getting stuck on price, focus on the quality of service. A vendor can have the lowest price and the lowest quality of work, too. Your goal is to understand what value-add a given vendor bringing to your company.

 

17. What are Supply Chain KPIs mandatory to monitor and Improve supply chain performance?

 

 

What the hiring company is looking for:

 

They are looking for your knowledge and understanding of supply chain KPIs to understand the current state and how you will improve the process to deliver better supply chain performance

 

Answer:

 

You can start with quotes like,

 

“It’s not the organizations that are competing. It’s the supply chains that are competing.” – Wael Safwat, SCMAO

 

Supply Chain KPIs allow us to monitor the processes of the supply chain so that we can identify processes that need improvement. Especially in the following areas, KPIs must be used: order processing, inventory managementprocurement and supplier managementproduction/manufacturingwarehousing, transportation, cross-functional, etc.

 

Further Reading:

 

Following blogs & best practice tools will help you significantly to answer supply chain planner interview questions.

 

18. What are the Logistics and Warehouse KPIs you have used to monitor logistics cost and performance?

 

What the hiring company is looking for:

 

They are looking for your knowledge and understanding of Logistics KPIs and how well an organization’s logistics function is performing. They’re used to evaluate the effectiveness of operations and identify areas for improvement.

 

Answer:

 

You can start by explaining Logistics KPIs should be either  SMART or PACT.

PACT stands for Purposeful, Actionable, Continuous, and Trackable.

 

Then explain Logistics Key performance indicators (KPIs) are a group of numerical indicators that may assess how well a firm performs over time. They enable us to track the organization’s effectiveness in attaining its objectives in particular and are measured in 6 main attributes mentioned below:

 

  • Attribute 1 – Productivity-related Logistics KPIs
  • Attribute 2 – Time-related Logistics KPIs
  • Attribute 3 – Cost-related Logistics KPIs
  • Attribute 4 – Quality-related Logistics KPIs
  • Attribute 5 – Safety-related Logistics KPIs
  • Attribute 6 – Cultural related Logistics KPIs

 

19. What are the criteria for slow-moving and non-moving stock analysis being used in the previous company?

 

What the hiring company is looking for:

 

Understanding inventory/stock awareness

 

Answer:

 

Excess and obsolete (E&O) inventory is the most frequently discussed issue that affects distributors, manufacturers, and retailers. The inventory signifies a massive investment for any business, and if it is not traded for some reason, it consumes warehouse space and increases liability.

I have written a complete guide explaining guidelines for adjustments, disposition, inventory valuation, and reserves. You can access this excess and obsolete inventory policy by clicking here.

You can also mention the Inventory Optimization Tool, designed to help businesses identify E&O Inventory and classify and recommend segmentation changes., i.e. from MTS to MTO and vice versa.

 

Inventory Optimization Tool

 

Further reading:

 

Furthermore, you will benefit from The Ultimate Guide to Inventory Planning Methods. The objective of this guide is to describe the present use, application, and characteristic of selecting various inventory planning methods, and to explain how the methods are applied by the supply chain professionals.

Lastly, stocktaking is an important process in managing slow-moving stock. Stocktaking: The Ultimate Guide, will be a great help to put structure to your stocktake/ physical inventory process.

 

20. How do your finance colleagues impact your decisions?

 

What the hiring company is looking for:

 

  •    Effective communication between departments
  •    Appreciation and understanding of finance department/colleagues with their impact on your role and responsibilities

 

Answer:

 

The importance of the finance colleagues/teams cannot be stressed enough – they can track the company’s finances against the business plan and forecasting and potentially deliver budgets earlier to provide continual financial stability.

The finance team must be high-performing and communication with them is optimum.

 

Further reading:

 

You could benefit by reading 5 Reasons Why Your Finance Manager is Amongst Your Key Supply Chain Stakeholders

 

21. What was the last Supply Chain book/article you read? What was it about and what did you learn from it?

 

Answer:

 

You can surely benefit from picking one from SCMDOJO Academy.

Or you can mention the Top Books listed in these blogs recommending awesome books!

 

 

22 What are the Key differences between S&OP Vs IBP?

 

Answer:

 

You answer this question thoroughly you should read this blog S&OP Vs IBP – What is the Difference? Also, watch this video with Gabriel Werner, VP of Blue Yonder., to understand the concept.

 

23. Have you used Python for your Supply Chain analysis?

 

Answer:

 

Check out this video to give answers to the above questions, “Why do INVENTORY MODELLING & FORECASTING using Python“.

 

Some extra supply chain interview questions and answers for managers

 

24. Which type of distribution network have you worked on? What are the challenges? What improvements have done with your distributors?

 

Answer:

 

Here you can explain the distributorship field has been fast-growing in recent years, and intense competition has occurred with the rise of eCommerce. To be afloat in this competition, distributors must keep pace with new supply chain & logistics developments, improvements, and variations.

Ans distributors should be assessed in below three categories:

  1. What to Expect from a Distributor – The Basics Management Capabilities Criteria
  2. Logistics Capabilities
  3. Materials Management Capabilities

 

25. What can you say about Sourcing Methods? Types of Raw Materials you have sourced? Have you ever gone with imports or has he been managing local purchases?

 

Answer:

 

Here you can answer starting with the 7 Steps of Strategic Sourcing and what Make or Buy decisions you were involved in. Approaches to the tendering process, Prequalification evaluation, and Awarding criteria when sourcing from suppliers

If you don’t know the above, you can start with the course by Maryna on The Sourcing Process

 

26. How would you help control procurement spending”

 

Read this blog which will help you to answer this question.

 

27. What is S&OP and why follow S&OP sequence?”

 

Answer: 

 

To answer this question, you can mention the 5 Steps of the S&OP process mentioned in this comprehensive course.

 

28. Describe a time you had to improve the efficiency of a supply chain process. What steps did you take and what was the outcome?

 

What the hiring company is looking for:

 

Problem-solving skills, ability to identify inefficiencies and successful implementation of improvements.

 

Answer:

 

In my previous role at [Company Name], I identified an inefficiency in our order fulfillment process. Orders were taking an average of 5 business days to ship due to manual data entry errors. I implemented a new order management system that automated data entry and integrated with our warehouse management system. This resulted in a 2-day reduction in order fulfillment time, leading to increased customer satisfaction and reduced operational costs.

 

29. How do you stay up-to-date on the latest trends and technologies in supply chain management?

 

What the hiring company is looking for:

 

Continuous learning and a commitment to professional development.

 

Answer:

 

I stay up-to-date on the latest trends and technologies in supply chain management by attending industry conferences, subscribing to relevant publications, and participating in online courses. I also follow thought leaders in the field on social media and actively network with other supply chain professionals.

 

30. How would you handle a situation where a key supplier is unable to deliver on time?

 

What the hiring company is looking for

 

Crisis management skills, communication skills, and the ability to develop alternative solutions.

 

Answer:

 

If a key supplier is unable to deliver on time, I would first attempt to understand the reason for the delay and determine the impact on our production schedule. I would then communicate clearly with internal stakeholders and explore alternative solutions, such as sourcing from a secondary supplier, expediting shipping, or adjusting production plans.

 

31. What are your thoughts on the increasing importance of sustainability in supply chains?

 

What the hiring company is looking for:

 

Awareness of sustainability trends and a commitment to environmentally responsible practices.

 

Answer:

 

I believe sustainability is becoming increasingly important in supply chains as companies look to reduce their environmental impact and meet customer demands for eco-friendly products. I am interested in exploring sustainable practices such as using recycled materials, optimizing packaging, and reducing carbon emissions in transportation.

 

32. Can you explain the difference between Just-in-Time (JIT) and Just-in-Case (JIC) inventory management strategies?

 

What the hiring company is looking for:

 

Understanding of different inventory management techniques and ability to choose the appropriate strategy for a specific situation.

 

Answer:

 

Just-in-Time (JIT) inventory management aims to minimize inventory holding costs by receiving materials only when they are needed for production. This strategy requires strong supplier relationships and accurate forecasting. Just-in-case (JIC) inventory management involves holding a buffer of safety stock to mitigate the risk of stockouts due to unexpected demand fluctuations or supply disruptions. The choice between JIT and JIC depends on factors such as product lead times, demand variability, and the cost of stockouts.

 

33. How do you approach building strong relationships with suppliers?

 

What the hiring company is looking for:

 

Strong communication skills, collaboration skills, and a focus on building mutually beneficial partnerships.

 

Answer:

 

I believe in building strong relationships with suppliers through open communication, collaboration, and fair negotiation. I work closely with suppliers to understand their capabilities and challenges, and I strive to provide them with clear forecasts and timely payments. This approach fosters trust and cooperation, leading to a more efficient and reliable supply chain.

 

34. How can you leverage data analytics to improve supply chain performance?

 

What the hiring company is looking for:

 

Understanding of data analytics and its potential applications in supply chain management.

 

Answer:

 

Data analytics can be a powerful tool for improving supply chain performance. By analyzing data on factors such as demand, inventory levels, and transportation costs, I can identify trends, predict potential problems, and make data-driven decisions to optimize processes. I am familiar with data visualization tools and comfortable working with data sets to extract valuable insights.

 

35. Describe a situation where you had to collaborate with other departments (e.g., Marketing, Sales, Finance) to achieve a successful outcome in the supply chain.

What the hiring company is looking for:

 

Collaboration skills, ability to communicate effectively with diverse stakeholders, and understanding of the interconnectedness of different business functions.

 

Answer:

 

In my previous role at [Company Name], we launched a new product line with a tight deadline. To ensure a smooth supply chain launch, I collaborated closely with the marketing and sales teams to understand their forecasted demand and promotional plans. I also worked with the finance department to secure the necessary budget for raw materials and production. Furthermore, this cross-functional collaboration ensured that we had the right inventory levels in place to meet customer demand on the launch date, contributing to the successful introduction of the new product line.

 

CONCLUSION

 

Well, I hope these Supply Chain Interview Questions and answers have been useful, and you now feel that much more confident when preparing for your interview.

 

If you have more Supply Chain Interview Questions or additions to make, feel free to add them. I am open to learning and welcome new ideas too!!

 

Several resources you can add to your favorites that I have available on www.scmdojo.com include:

 

 

 

Moreover, please watch this awesome interview on The Supply Chain Show to understand what it takes to become a Supply Chain TOP TALENT.

 

Lastly, if after reading this blog you are wondering if you should search for your next supply chain move for bigger and better things, you should watch my vlog below or other videos!

 

 

About the Author- Dr Muddassir Ahmed

 

Dr MuddassirAhmed is the Founder & CEO of SCMDOJO. He is a global speakervlogger, and supply chain industry expert with 17 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East, and South East Asia in various Supply Chain leadership roles.  Dr. Muddassir has received a PhD in Management Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and founded the leading supply chain platform SCMDOJO to enable supply chain professionals and teams to thrive by providing best-in-class knowledge content, tools, and access to experts.

You can follow him on LinkedInFacebookTwitter or Instagram

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