How would you negotiate with a current client if they suddenly could

not afford their contract price?

This type of question can tell the interviewer how you would take steps to help
clients find solutions to pricing challenges and costs. Show the interviewer your
ability to listen actively, make suggestions and approach compromises for long-
standing clients.

Example: "In my prior company, I received a call from a client business who
experienced increases to production costs. Because of these cost increases, the client
felt they needed to cancel our contract. However, I saw some opportunities for cost
savings and repricing our vendor services, which helped me compromise on a price
adjustment for the client account. After coming to this compromise, the client was able
to meet their contract requirements and remain active as one of my organization's
vendor accounts."

1. Tell me about a negotiation you've had that was successful.

This question can help show the strength of your communication skills and how
you could effectively use them to benefit your potential employers. When
answering this question, it can be helpful to pick a specific situation where you
used sound problem-solving skills to successfully negotiate with a vendor or
supplier.

Example answer: "When I first started as a sourcing specialist, I was working hard to
reduce costs for my employer. I contacted all of our vendors to see how we could reduce
costs on some of our inventory purchases, and one supplier mentioned they could
reduce the cost for us, but only if we purchased more inventory in a single shipment.

I talked with other departments to hear their thoughts, and they agreed to promote
that piece of inventory more while slightly reducing its selling price. In the end, we
ended up saving money per piece of inventory, and due to the company's marketing
efforts, our revenue actually increased by 12%."

Related: Negotiation Skills: Definition and Examples

2. How do you ensure suppliers will deliver goods on time?

When answering this question, it can be beneficial to list certain steps you take to
ensure vendors deliver their goods in time for their intended use. This can include,
scheduling the orders, understanding wait times and calculating any risks
involved. This can allow the employer to see your powerful critical thinking skills
and how they could be used for their company.

Example answer: "Over the years as a sourcing specialist, I developed a great system
to ensure suppliers deliver goods on time, but also to be honest with colleagues about
shipping times. If a department of the company needs me to order something, I
consider the shipping time, as well as possible delays, and provide them with an
accurate estimation. The product almost always arrives when it's supposed to, and
sometimes it's even early."

Related: 6 Ways to Improve Critical Thinking at Work

3. What do you like the most and the least about sourcing?

Some employers might use this question to understand your passion for the job,
as well as your honesty as an employee. If there are certain aspects of the job you
find less enjoyable than others, it can be beneficial to mention them and follow up
with ways you try to make them more enjoyable or how you ensure those tasks
don't impede with your duties or your passion for the job.

Example answer: "One of my favorite parts of the sourcing position is the satisfaction
of organizing shipment orders and finding ways to reduce costs wherever possible. It's
like a fun puzzle for me. What I find less fun, though, is negotiating prices with vendors
or suppliers because it can often make me a little anxious. However, I like to treat those
as opportunities for growth and development. Compared to when I first started, I am a
lot better at negotiating now, and find I enjoy it a little more each time."

4. Have you ever needed to resolve a disagreement with a vendor?

This question can often allow employers to determine how you resolve workplace
disputes. When answering this question, it can be important to mention a time
when you disagreed with a vendor, and the steps you took to find a solution or
compromise to the conflict.

Example answer: "Yes, there was a time when a vendor promised me a certain price
per piece of inventory, but when the invoice arrived, they had charged the full price.
When I called, they denied my claim of being promised something else and told me we
had to pay the full amount.

I kindly mentioned to them we had already calculated our budget with the promised
price, and if they weren't able to match it, we would have to send the product back and
find a new vendor. We eventually settled for a price slightly higher than they originally
agreed on, and I made sure to never make decisions again based on promised prices,
unless they were in writing."

Related: Conflict Resolution Skills: Definition and Examples

5. Tell me about a problem you faced at work, and how you

responded to it.

When answering this question, being very specific about the steps you took to
approach the workplace challenge can be beneficial for you and allow the
employer to understand the strength of your problem-solving abilities.

Example answer: "Once, while working for my previous employer, which was a large
corporation, we had a shipment of inventory that never showed. I contacted the vendor,
and they were happy to send us another shipment free of charge as part of their policy.
Unfortunately, we needed the inventory for a major promotional event. So, I called
some other branches in the area and we were able to split some inventory between us
and have everything set for the promotion. When the replacement shipment arrived, I
redistributed our inventory to the other branches to balance everything out."

6. What would you do if a department of the company wanted to

purchase something that's out of budget?

This question is another great way to demonstrate your skills at communication

and resolving workplace disputes. When answering, it can be helpful to give
specific details about what was being purchased and how you maintained the
working relationship.

Example answer: "When first starting as a sourcing manager, the production

department was trying to compensate for an increase in orders and was asking for an
additional twelve 3D printers. Unfortunately, the most our budget could cover was five,
which the production department said wouldn't work. So, I called a meeting between a
few department heads, including marketing, research and production, and figured out
ways we could compromise to help each other. Marketing and research were able to cut
some costs, and in the end the company was able to order nine new 3D printers."

7. Have you ever received a defective product? How did you respond?

When answering this question, it can be important to list exactly how you
determined the fault in the product, and the steps you took to try to minimize any
defective products being shipped to you in future orders.

Example answer: "At my previous employer, I instructed my team on how to perform

quick quality checks on our delivered goods to make sure they were okay. One day, we
discovered an entire shipment of inventory was damaged and unusable. I called the
vendor to understand how this happened. They mentioned that this wasn't the first call
they received and that the products were okay when they left their warehouse.

So, I took the time to put together a list of reliable transportation and delivery services
they should check out. Shortly after, they switched to a different delivery service, and we
never had a problem again."

8. How do you manage multiple projects at the same time?

This question is a great way for employers to see your time management
capabilities. It can be important, when answering this question, to explain the
system or strategy you use and how it helps you manage projects successfully.

Example answer: "As a sourcing manager, I often have multiple projects I'm working
on, including negotiating prices with vendors and making sure orders for goods are
placed on time. During my workday, I always carry two pieces of paper with me: one is
my schedule for the day and the other is a daily to-do list. Each piece of paper often
mirrors the other, but seeing them both visually in front of me helps me keep track of
what I've done and what I need to do next. So far throughout my career, I haven't
missed a meeting or placed a late order."
Steps of Critical Thinking

1. Identify the problem or question. Be specific about the question

you are asking.
2. Gather and organize information. Find several sources that
present different perspectives and points of view. This will ensure
that you are not creating bias by only presenting data that supports
your initial view.
3. Analyze the data and sources. Evaluate the credibility and
reliability of your sources of information. Look for bias in your
methods of gathering data.
4. Determine the significance of data. Establish which information is
most important to the problem at hand. You may or may not have
enough relevant information to make an informed decision.
5. Make a decision. Of the various possible conclusions, which one is
supported by the evidence.
6. Communicate your conclusion. Present your final decision to
stakeholders

How to improve critical thinking

Here are several ways to improve critical thinking skills in the workplace to become
a stronger employee:

1. Become more self-aware.

2. Understand your mental process.
3. Develop foresight.
4. Practice active listening.
5. Ask questions.
6. Evaluate existing evidence.

1. Become more self-aware

Becoming more self-aware means considering your thought process, values,

morals, ethics and other beliefs. What do you believe in? How do your thoughts
reflect these values? Think objectively about your likes and dislikes. Knowing what
your personal preferences, strengths/weaknesses and biases are can help you
better understand why you approach specific situations from a certain perspective.

2. Understand your mental process

Identify and evaluate how you receive and process information. Understanding
how you listen, then interpret, and finally react to information is vital to becoming
more mentally efficient in the workplace.

Being a critical thinker means you recognize your own prejudices and how they
influence solutions and decisions. Taking time to analyze your mental process
before making a work decision can help you act more objectively.

3. Develop foresight

Consider how others might feel about a situation or decision you make. Determine
the possible outcomes of a situation and what might change, both positively and
negatively. Having the foresight to predict how your actions at work will produce
reactions will help you make the right choice.

Related: Analytical Skills: Definition and Examples

4. Practice active listening

Active listening is a foundational element of effective critical thinking. Listen

carefully and attentively while coworkers and supervisors are talking. Practice
empathy and focus on understanding their perspective(s). Gaining a full
understanding of what they want, need or expect can help you react positively and
have a subsequent productive conversation.

Read more: Active Listening Skills: Definition and Examples

5. Ask questions

When you’re not sure, always ask questions. Start with what you already know and
confirm you have all of the details correct. Ask to have points repeated or consider
rephrasing in your own words to determine whether you’ve accurately
understood. Consider asking follow-up questions to get details that may have
been left out or misheard. Follow up by asking yourself if something is a fact, an
opinion or an idea. This step can help you assign purpose and value to a piece of
information.

6. Evaluate existing evidence

Use previous experience and facts to help you make your current decision through
critical thinking. Have you encountered a similar project or challenge before? What
did you learn from that experience? By conducting research, sorting facts and
using previous experience as existing evidence you can arrive at a more applicable
and effective solution to work with in your present.

Related: 5 Examples of Critical Thinking Skills

Tips for improving critical thinking skills

There are many ways to improve your critical thinking skills during your career
development, including:

Meeting with a mentor

Having a mentor can help you develop a variety of skills in addition to being able
to collaborate on solutions and decisions. They can help you focus while using
critical thinking techniques, or they may have resources to help you improve your
critical thinking skills.

Participating in team-building exercises

Many team-building exercises aim to improve critical thinking skills, both for
groups and individuals. If your organization employs these exercises, be sure to
participate. If your organization does not, consider introducing your team to
examples during a meeting to gain similar benefits.

Related: 6 Ideas for Team Building Activities

Asking for leadership opportunities

As a leader, you may be required to manage conflict resolution and make

important decisions. These responsibilities are real-world experiences that require
keen critical thinking skills. Consider asking to lead a new project or assist a team
member in training to refine these skills.
Why do you want to work as a vendor manager?
Put emphasis on your communication and organization skills. You’ve always excelled in
negotiation, and you always managed to build good relationships–be it with teachers at
school, colleagues in your former jobs (if you had any), or business partners your former
employer cooperated with.

What’s more, you can do an effective market research, and know something about their
field of business. After reading the job description, you believe that you will enjoy this type
of work, and have all predispositions to do it well. That’s the reason why you decided to
apply. And perhaps you even have some role on your mind, a job you’d like to have in five
years time. And this one fits your career plan perfectly.

Of course, if you have a relevant working experience, you should mention it in your answer.

How do you imagine a typical day in work of a vendor manager

in our company?
Read the job description carefully. Some vendor managers travel a lot, meeting vendors in
person, or even inspecting the quality of goods. What’s more, it’s always easier to build a
good relationship when you meet the decision makers in person.

But in some other roles you will simply spend your day on the phone, and at the desk,
looking at your computer screen, sending emails, orders, etc. This really depends on the
organization of the company, the colleagues you will share an office with, and other things.

If you aren’t sure, or the job description isn’t clear, you can simply say that you expect to
spend a lot of time communicating with the existing vendors, or looking for new business
partners. You aren’t sure about the most effective means of communication yet, but have
no problem with traveling, or with spending a lot of time on the call. With such an
answer you cover all possibilities.

In your opinion, what matters most when we try to develop

good and long-standing relationships with the vendors?
I suggest you to emphasize individual approach to each vendor. This means meeting them
in person, treating them according to the size of their business operations, expectations,
and the type of cooperation you have together.

But it also means to take part in their fairs, or even team-building events, simply be present
when things are happening. You should also suggest transparency and a clear system of
policies and guarantees–for both contract parties, of course.
Ensure the hiring managers that you understand the power of personal and long-standing
relationships with the vendors. Such relationships allow you to secure the best deals and to
be sure about the quality of delivered goods. And that’s your goal after all.

Your task is to find a new supplier of forklifts for the company.

Tell us how you will proceed.
The most important thing is to show that you have some system in your work. Before
anything else, you will try to get the most in-detail specifications from either the logistics
manager of the warehouse manager. What class of forklifts they want, the budget you have,
how many of them do they want and will the demand repeat in the future, and so on, and so
forth.

Once you have enough information, you will start your online research, identifying form five
to ten potential suppliers. Since forklifts are expensive, after initial phone calls and emails
you will shortlist three or four vendors, and visit each of them in person, to see the forklifts,
to negotiate about the price, etc.

At the end you will choose the best one, but you won’t look only at the price. Guarantees,
the promptness of service, the reputation of the company–all of these will play a role in
your final decision. Once your decision is approved by your superior, you will proceed and
coordinate the delivery of the goods…

Imagine that you meet a vendor of some basic goods, for

example groceries, for the first time. What questions will you
ask them during the interview?
This really depends on the type of vendor, but you won’t do wrong with the following
questions, in dealing with any type of vendor:

▪ How long have you been in business?

▪ Who are your principal clients? Can I contact anyone for references?
▪ What commercial and industrial standards you adhere to in your production?
▪ Can you tell us more about your capacities, the volume you are able to deliver
on a weekly or monthly basis?
▪ What payment model do you typically use with your customers?
▪ Do you offer any guarantees?
▪ What is your price for this or that item, this or that quantity?
▪ ……….
Ensure the interviewers that you will inspect much more than just the price they offer.
Asking about existing clients and references, quality standards, guarantees and payment
models, you get a decent picture of each vendor and things you can expect from them.

You will work with many vendors in this job. How do you plan
to stay on the top of things?
Say that reporting and monitoring plays an important role in your work style. You do not
rely on memory, or on luck. On the contrary, you plan to have a database of all vendors, with
all important information about each business partner.

With clearly defined milestones, deadlines, and schedule of receiving goods, you can
always rely on your database. What’s more, you like to have a to-do list at work, and will
prepare one for each day or week. Staying organized and following plans, you should not
find it difficult to stay on the top of things, and keep track of your cooperation with various
vendors.

A long time business partner contacts you saying that they

have to increase their prices by 10%, due to increased
production costs. How will you react?
Hiring managers are looking for someone who can look at such a situation from different
angles. It’s your way of thinking that interests them the most. Say that you will consider a
lot of variables before reacting:

▪ The alternatives you have–whether there are any other vendors that can
provide you the same goods of the same quality.
▪ How long you’ve been cooperating with the supplier, and the quality of your
relationship.
▪ Whether their claim is justified–whether the prices of raw materials or energies
or anything else they use in their production really increased.
▪ If you can allow to pay more, what your profit margin is, and if you can allow
increasing the price for the final customer.
▪ …..

Considering all these variables, you will gauge your negotiation power, and try to eventually
secure a better deal–whether with this supplier, or with another one. In any case, you will
always consider different options. And you will consult the situation with other managers in
the company. At the end, you will try to do the best thing for your employer.
Other questions you may face in your vendor management job
interview
▪ Tell us about a time when you used persuasion to convince someone.
▪ What do you want to accomplish as vendor manager? What goals will you set
for yourself in this job?
▪ Tell us more about your negotiation strategies. How would you try to get the
best possible deals with the vendors?
▪ In your opinion, what matters more in this field of business–price, or quality?
▪ Tell me one thing about yourself you wouldn’t want me to know.
▪ What do you know about our company? Who are our main competitors?
▪ What is your opinion about looking for suppliers in the foreign markets?
▪ What are your salary expectations?
▪ Tell us about a time when you showed initiative at work.
▪ When you had to work on multiple projects, how did you prioritize?

* Special Tip: If you are not sure how to answer the questions from my list, or experience
interview anxiety, have a look at our Interview Success Package. Up to 10 premium answers
to basically all tricky questions you may face in your Vendor Management job interview will
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Conclusion, next steps

Vendor manager is not a fancy job title, and you do not have to worry about competing with
dozens of other applicants for the position. This makes your situation easier.

On the other hand, it’s quite a specific job, and industry knowledge and previous
experience in the field can play an important role in the hiring process.

Having said that, your answers to interview questions always play the most important role–
whether you can convince them of right attitude to work, and to various situations you may
experience while managing the vendors. My hints should help you to do that… I hope you
will succeed, and wish you good luck!

Matthew

May also interest you:

▪ Salary negotiation tips – Maybe you know how to negotiate the best price with
the vendors. But can you negotiate the best price for the time you spend in
work?
▪ Logistics manager interview questions – Some of them may overlap with the
questions you will face in your vendor manager interview. Get ready and avoid
any negative surprises.
▪ How to dress for an interview – Not sure what to put on for the big day? We
have all the answers.