33 Popular Procurement

OVERVIEW

Interview Questions
Last update: April 7th, 2022

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1. “What Are The Qualities That A
Procurement Manager Must Have?”
Scenario: The manager wants to check if you have the basic
idea of what a procurement manager does and the
qualities that he/she must have.

How to Answer: Make a list of the qualities of the

procurement manager. Answer in a brief manner. Don’t beat
around the bush; just answer the question directly.

The best qualities of a procurement manager are the

following
Must have good negotiation skill
Must have excellent problem-solving skill
Must know cost reduction tactics to ensure cost-
efficienc
Must be good at planning and implementing correct
procurement strategie
Must be transparent when dealing with vendors and
suppliers.

2. “Did You Face Any Major

Challenges During Your Last
Procurement Manager Role? How
Did You Overcome Them?”
Scenario: The hiring manager wants to check on your
problem-solving skills. He/she wants to know how you are
going to handle issues professionally.

How to Answer: You can start by explaining the challenges

that a procurement manager may face. Next, you can start
explaining your approach to the challenge. Again,
remember to explain very briefly.

3. “How Do You Ensure Procurement

Best Practices Throughout The
Project?”
Scenario: Depending on your answer, the interviewer wants
to assess your knowledge of standard procurement
practices for projects to stay on track.

How to Answer: Describe some of the best procurement

practices first and then briefly explain how you are going to
execute those practices.

4. “How Will You Determine the

Organization’s Purchasing
Patterns?”
Scenario: For this question, your interviewer will want to
know if you are ready to follow the company’s procurement
pattern or if you’ll readily use your procurement strategy.
The best advice in this situation is to analyze the
procurement pattern and then evaluate it to mark the areas
that need improvement.

How to Answer: Start by explaining the second analysis.

Include some techniques and tools that you can use for
checking the purchasing pattern so that you’ll sound like an
expert during the interview.

5. “How Will You Handle Day-to-

Day Procurement Activities?”
Scenario: This question will check on how you handle the
day-to-day procurement activities effectively and
efficiently.

How to Answer: Start your answer by explaining how

important the day-to-day activities are and then
emphasize teamwork, performance analysis, and
management plan.

6. “How Do You Know If The Price Is

Fair If We Buy From A Single Vendor?”
Scenario: This is a question that will determine if you are
capable enough to decide whether it is profitable to buy
from one vendor.

How to Answer: Explain the reason why you will have a

single vendor only and then list down the best procurement
techniques that you can follow for such circumstances.

7. “What Is The Best And The Worst

Thing About Procurement?”
Scenario: When it comes to work, everyone has their best
and worst moments. This question highlights that, with the
interviewer checking what your strong and weak points are.

How to Answer: Always answer professionally. Don’t be

blunt with your answers, as it will most likely give your
interviewer a wrong impression of you.

8. “What Kind Of Relationship Do

You Prefer With The Suppliers?”

Scenario: With this question, the interviewer wants to

analyze your ethical and technical understanding of
supplier management and procurement.

How to Answer: Briefly answer technical steps for a good

relationship with the suppliers. Remember, your answer
should also reflect your ethos.

9. “State An Example For How Will

You Entertain A Cost Reduction
Program?”
Scenario: A cost reduction program is a lifesaver when
supplies are out of budget. This question will gauge how
capable you are of managing purchases within a low
budget.

How to Answer: Explain what a cost reduction program is

and list down some techniques and tools that can help in
reducing costs.

10. “What Is Your Market Strategy

And How Will You Shape it?”
Scenario: The interviewer will use this question to check if
you have enough knowledge on how to move in the market.
Market strategy is all about your market information.

How to Answer: You can start by describing what a market

strategy is. Then follow up with an explanation on how it
depends on internal and external circumstances.
11. “What Will Be Your Procurement
Risk Management Strategy Against
New Suppliers?”
Scenario: Depending on your answer, the interviewer will
assess your supply chain risk management skills against
new suppliers that can be unreliable.

How to Answer: Again, always give a brief answer. Explain

the importance of risk management tools.

12. “How Do You Decide If There

Needs To Be A Contract Or Not?”

Scenario: This question will give the interviewer an idea of

how much you prefer contracts and what their importance
is in procurement management.

How to Answer: Answer by first explaining the importance

of contracts. Then cite examples of when you might not
need a contract.

13. “Which Tools Do You Prefer to

Track the Progress of Your Project?”
Scenario: Tools vary from company to company. This
question will help the interviewer check your knowledge of
the many different procurement management tools.

How to Answer: Your answer should reflect on how good

you are at handling different procurement management
tools. You can expand on this by sharing a brief experience
with any of the tools you mentioned.

14. “Which Process Do You Follow

When Conducting a Sourcing
Initiative?”
Scenario: This question will help the interviewer is assessing
your knowledge regarding sourcing initiatives and how
good you are with them.

How to Answer: Your answer should show your

understanding of the sourcing initiative. Afterward, explain
the process that you prefer to follow.

15. “What Strategy Will You Adapt

To Accelerate the Progress?”
Scenario: Depending on your answer, the interviewer wants
to know your approach to progress acceleration if the
project is not on track.

How to Answer: Explain your strategy comprehensively.

Highlight important factors and remember, be brief when
giving your answers.

16. “What Do You Know About UCC

(Uniform Commercial Code)?”
Scenario: The hiring manager wants to know if you have any
idea about UCC or Uniform Commercial Code.

How to Answer: Explain what you know about the topic.

Keep your answer short and sweet.

17. “If there’s A Need To Buy

Equipment That’s Beyond
Company’s Budget, What Will Be
Your Take?”
Scenario: For this question, the interviewer is trying to check
on how good you are at managing a critical situation while
ensuring that the project receives everything that it needs.

How to Answer: First, explain the importance of proper

resource planning. Make sure to list down the techniques
needed to handle the requests.

18. “Explain The Purchasing

Process?”
Scenario: This question is often asked to assess if you are
familiar with the general purchasing process.

How to Answer: Enlist every step. However, do not start

explaining each step unless it is required by the interviewer.

19. “What Negotiation Skills And

Tactics Do You Possess?”
Scenario: This is often asked by most interviewers.
Negotiation is always an important aspect of becoming a
procurement manager, so your skills and negotiation tactics
will be required once you are chosen for the role.

How to Answer: Explain the factors that negotiation

depends on. Remember to list down the important skills and
negotiation tactics to show your expertise.

20. “What Are Some Important

Procurement Metrics?”
Scenario: This is a question that will test your understanding
of key procurement metrics and how you intend to use
them,

How to Answer: Explain the factors that performance

metrics depend on. List down some of the standard
procurement metrics that you know and follow.

21. “What Is Supply Chain

Management?”
Scenario: A common question during a procurement
manager interview, supply chain management includes an
integrated approach to planning, implementing, and
controlling the flow of information, materials, and service
from raw materials to the finished good for the ultimate
distribution to the customer. Getting this question means the
interviewer expects you to know this by heart.

How to Answer: Give your best explanation in the briefest

form possible.

22. “What Is TEU?”

Scenario: TEU stands for Twenty-foot Equivalent Units. It is a
method of calculating vessel load or capacity, in units of
containers that are twenty feet long. An important sourcing
question that can be asked during interviews.

How to Answer: Remember to answer briefly but concisely.

23. “What is Cross-Docking?”

Scenario: Cross-docking is the process of unloading
materials from an incoming semi-truck and loading them
directly into out-bounds trucks or trailers. This is an
important sourcing question that is sometimes asked during
interviews.

How to Answer: Remember to answer briefly but concisely.

24. “What is Deadweight Tonnage?”

Scenario: Deadweight tonnage is the difference between
the laden and unladen weight of the ship. In other words, it
is the weight of everything that ship carries except the ship
itself.

How to Answer: Remember to answer briefly but concisely.

25. “What Is LTL?”

Scenario: LTL (Less than Truckload) shipment is a contract
between the shipper and the transport owner. According to
the contract, instead of the entire truck, the shipment is
priced according to the weight of the freight and mileage
within designated lanes.

How to Answer: Remember to answer briefly but concisely.

26. “What Is ASN?”

Scenario: ASN means Advanced Shipping Notice. It is a
notice that is sent to the customer about the detailed
shipment information in advance of delivery.

How to Answer: Remember to answer briefly but concisely.

27. “What Are Documents Against

Acceptance?”
Scenario: Documents against acceptance are an
arrangement or provision, where the exporter instructs a
bank to hand over shipping and title documents to the
importer only if the importer agrees to the accompanying
bill of exchange or draft by signing it. This question is
commonly asked to measure your knowledge of important
sourcing terms.

How to Answer: Give your best explanation in the briefest

form possible.

28. “What Is The Difference

Between Procurement And
Sourcing?”
Scenario: For this question, the hiring manager wants to
learn if you know what these two terms mean. Both
procurement and sourcing are terms that may sound alike,
but they are also different from one another. We even have
a dedicated article for that here.

Being able to answer this question means you know exactly

what position you are trying to apply to and will give the
hiring manager confidence in picking you for the position.

How to Answer: Give a simple but concise answer.

Procurement is the process of purchasing supplies for the
company’s growth and/or operations. Sourcing is the
procurement process of looking for the best suppliers to get
the supplies or services from.
29: What do you know about BATNA
and how will you use it to your
advantage?
Scenario: It’s an abbreviation for “Best Alternative to a Negotiated
Agreement”. It’s your backup plan if your negotiation doesn’t lead to a deal. By
determining a BATNA you’ll have more confidence because you have a
backup plan if the negotiation doesn’t work out. Because of this, you won’t feel
forced to make a bad deal. Going into any negotiation, it’s important to have a
clear understanding of your BATNA. If you’re negotiating with a supplier, be
sure about the pricing of alternative suppliers. One of the greatest dangers in
a negotiation is being too committed to coming to an agreement. Your
negotiation partner will immediately sense this and will get the upper hand in
the negotiation.

Before you begin a negotiation, know your options. Are you able to walk
away? What are the pros and cons of each alternative? However, don’t stop
here.

How to answer: Give your best explanation in the briefest form possible and
make sure to tell how to use batna to your advantage

Learn more here

30: What is your own negotiation style? And

how do you counter others?
Scenario: The negotiation style of your opponent should have a big impact on your strategy. Negotiation situations can
often be tense. In these circumstances, most people have a tendency to fall back to their habits of dealing with conflict and
negotiation. If you’re in a negotiation, it’s important to be able to identify the negotiation style of your opponent.

But maybe even more important, you should be aware of your own negotiation style.

People are constantly negotiating and smoothing out conflicts throughout their professional and personal life. With the
current trend of organizations becoming less hierarchical, personal conflicts will occur more frequently. Being able to
navigate through these situations will have a positive impact on your career and on your negotiation outcome. Studies have
shown that negotiation has a direct impact on your ability to make a good deal. But hey, you already knew that! In order to
categorize the negotiation style of your opponent quickly, we’ll use an effective framework to help you understand anyone’s
negotiation style.

How to identify your own negotiation style? Let’s start with an example and identify your own negotiation style. Think of a
situation where you had to negotiate. Now answer these 2 questions:

1: Is it important to satisfy your own needs?

2: Is it important to satisfy the needs of your opponent?

How to answer: make sure you are aware of the 5 main negotiation styles and convince the interviewer that you are able to
switch styles in different situations. This means you are an excellent negotiator

Learn more here

31: What is a ZOPA?

Scenario: ZOPA is the acronym for Zone of Possible Agreement. It is an area where two negotiating
parties can agree. The ZOPA is that one slim chance for two parties who are dead set against each
other to come to a common ground and may accept a compromise for everyone’s sake. However,
you also need to realize that every result may differ. Every negotiation consists of two parties that
are both trying to gain the upper hand against the other. A ZOPA will appear if both parties have
deal objectives that are still within the ZOPA.

Any more than that and you have a negative bargaining zone. Simply put, there is no bargaining for
you or the other party. When dealing, the ZOPA principle can be represented as shown. If the
highest price the buyer is willing to pay is greater than the lowest price the seller can accept then
the agreement is possible. The range in the middle between these two breakpoint prices is referred
to as ZOPA (Zone of Possible Agreement).

The problem with ZOPA is that both parties usually have an imprecise breakpoint price and make
no formal attempt to assess probabilistic information about the other’s reservation price. In my time
as a procurement manager, I invested as much effort as possible to make sure I got as much
information as possible on the seller's reservation price. The earlier you know this, the easier you will
achieve your desired result. Opening extreme can help in determining your opponent's breakpoint.

How to answer: Explain what you know about the topic. Keep your answer short

learn more here

32: What are the main principles of persuasion

that guide decision-making in negotiations?
Scenario: for decades, researchers in a wide range of academic disciplines have studied the factors that
drive us to agree to the requests of others. Common sense suggests that when someone must make an
important decision, they carefully consider all available information to create an informed decision.
However, research conducted by social psychologist Robert Cialdini indicates that our decision-making is
not guided by logical examination of the facts, but by certain universal shortcuts.

Understanding these shortcuts and properly implementing them in your negotiations increases your
chances of successfully persuading a negotiating partner, and having them agree to your request. This
leads to a better outcome for your negotiation result. Cialdini found six main principles of persuasion that
guide decision-making. These principles of persuasion are extremely powerful and should be used
frequently throughout your upcoming negotiations.

The first is liking. The principle of liking states that people prefer to accept the requests of others they like.
The science of persuasion indicates that we like people for one of three reasons: they are similar to us, they
pay us compliments, or they cooperate with us in the pursuit of common goals. But how does this translate
to negotiation? Research shows that likability is one of the most important factors in reaching a beneficial
outcome during negotiations, so take time to discover areas of similarity with your negotiating partner
before you start proposing any terms. In my time as a procurement manager, I am sure I closed better deals
with people with that I had a good relationship. The opposite is also true.
The second is scarcity. People tend to want more from resources when they are limited. Effective
negotiation requires you to not only inform the other party of the benefits they enjoy if they
select your product but also demonstrate the value of the product and its limited availability. You
must explain why your proposal is unique and convince the other party of what they may lose
by neglecting this proposal.

The third is Authority. In any type of negotiation, people will follow knowledgeable, credible
experts they can trust for honest information. It is vital to signal your authority to the other party
before you attempt to influence their decision. Convincing potential clients cannot be done
simply by telling them how beneficial your proposal is, but must involve support from outside
sources that the other party finds reliable. When meeting new clients, ask someone to make the
initial introduction who can be trusted to offer persuasive information about you.

The fourth is Consensus. When people are uncertain about how to behave, they analyze others
to make decisions. While negotiating, you should not rely solely on your ability to influence
others directly but also call attention to what other people are doing in the same situation,
especially when these people are similar to them.

The fifth is Reciprocity. When someone receives a gift or service from another person, they feel
obligated and motivated to give something back of equal or greater value. Similar to other
social contexts, negotiations benefit from reciprocity because a negotiating partner is more
likely to say yes to terms put forth by the other person when they feel indebted to them in some
way. Utilize the principle of reciprocity by being the party that gives the initial gift and making
sure this gift is unexpected, personalized, and valuable.

The sixth is consistency. Even if their previous decisions resulted in a less than desirable outcome,
people tend to act consistently with past statements they shared and actions they performed.
Research from several studies supports the conclusion that when a person agrees to a small
commitment, this leads to a higher likelihood of agreement when approached with a larger
commitment consistent with the initial one. Take advantage of this information in your
negotiations by requesting a small initial commitment.

One important variable that the team of Procurement Tactics would like to point out, is that it is
very important to manage yourself. Key to any successful negotiation is emotional intelligence,
or the ability to recognize and manage your own emotions, as well as the emotions of the
people around you. Popularized by psychologist Daniel Goleman, emotional intelligence
includes four key elements: self-awareness, self-management, social awareness, and
relationship management. To become an emotionally intelligent negotiator, you must spend time
honing all of these valuable skills. Self-awareness is the ability to understand someone's
emotions, identify how they affect others, and determine their role in making decisions. Self-
awareness provides the framework for self-management, or the capacity to control one’s
emotions and adapt behaviour to changing circumstances.

How to answer: point out the six main principles of Persuasion and give examples of how you
used this technique to your advantage in your negotiations.

33: Did you experience a deadlock situation in

a deal once? How did you move forward?
Scenario: There are many advantages to trying to shift a deadlock deal situation to a win/win.

You will always come into negotiation situations where the other person either doesn't wish to
reach a "win-win" or doesn't realize it is in his or her best interest to achieve a deal. In these
situations, it is necessary for you to open lines of communication and try to increase trust and
cooperativeness. Sometimes conflicts escalate, the negotiation atmosphere becomes charged with
anger & frustration, and all energy floats toward criticizing and blaming the other. In this type of
situation, many negotiators forget about their initial goals. Don’t let this be you! It is not easy to shift
this situation to a deal, but the following techniques might help you.

The first is to reduce tension through humor, let the other "vent," acknowledge the other's views,
listen actively, make a small concession as a signal of good faith.

The second is to change your communication style: rephrase the other's comments to make sure
you hear them; mirror the other's views, listen better.

Search for ways to slice the large issue into smaller pieces and depersonalize the conflict--
separate the issues from the people. You could also focus less on your position and more on a clear
understanding of the other's needs and figure out ways to move toward them. Last but not least is to
make a "yes-able" proposal; refine their demand; reformulate; repackage; sweeten the offer;
emphasize the positives.

Since we’ve finished discussing how to turn around a non-negotiable variable into a negotiable
one, it’s time to think about what you can do if you’re really dealing with a non-negotiable
variable or deal and no movement from the other party is expected. Despite your efforts, there
will always be deals that you can’t turn around. The other party decided to not negotiate
anymore. In this case, the only way you can do is to leave the negotiation table. There is no
shame in admitting defeat. Take some time to reflect on what you could have done that may
potentially have turned things around.

How to answer: point out that you are aware of possible techniques to turn impossible deals into
possible and add some personal experiences of how you did this yourself in the past.

PROGRAM SYLLABUS
Negotiation Game
Changer
Online Certificate Program
Last update: February 20th, 2022

Enroll now
An overview
Online, selfpaced learning

What you can expect of this program

English (including subtitles)

Powerful negotiation templates

Become a negotiation game changer

40 hours study material

Want to close better deals? Prepare faster and achieve

deal results you have been dreaming of? Enroll in our 12 months course access

Negotiation Gamechanger Certificate Program today! This

Digital certificate upon completion

course is a perfect fit for ambitious procurement & sourcing

professionals.

Data-driven preparation tooling

“The Procurement Certificate Program is designed for Reading materials & bonus content

ambitious procurement professionals and will equip you

60-day money back guarantee
with the full range of all skills needed to master the deal. The
program will help in building your knowledge about all the
important variables within the world of procurement. “

– Marijn Overvest, founder Procurement Tactics

Enroll now
Learn in-demand skills
And take your career to the next level

Study objectives
Personal Procurement plan

No result without clear plans. Learn how to transform data into The perfect fit for
power and build your own Personal Procurement plan in 5 easy
This course is perfect for procurement and sourcing
steps. Your result will be an actionable procurement plan that helps
professionals who want to stay ahead of current
you deliver savings for you & your company.

trends & digitalization.

Actionable Procurement strategies
Learn how to close better deals and how to
Taking a ‘prepared’ seat at the negotiation table gives power and transform data into negotiation power! After
confidence. There are many bright ways to prepare easier and completing this program, you will be able to close
faster for your upcoming negotiations. Learn how to unlock your full better deals.
procurement potential with practical negotiation design.

Negotiation skills: become a master of the deal

Get better deal results by implementing your detailed negotiation

strategy. Endless negotiation tactics and psychological tricks will
help you to gain the upper hand in your negotiations. Our proven
templates will help you close better deals.

Curriculum structure
Practical. Comprehensive. Game changing.
6 modules

Personal Procurement plan

The basics of procurement Procurement plan External analysis

Internal analysis Supplier plotting Building your procurement plan

8 modules

 Actionable Procurement strategies
How to form a negotiation strategy How to get in your counterpart’s mind

Power balance, how to compare suppliers Negotiation styles Negotiation strategy goalsetting

BATNA Carrots and sticks Negotiation teams

10 modules

Negotiation skills: become a master of the deal

Negotiation skills Negotiation opening Reservation price & ZOPA

Negotiation psychology Questioning and listening skills Negotiation tactics

Non negotiable Walk away point How to keep track of proposals Negotiation mistakes
Module 1 Content
What you can expect

The basics of procurement

1. Annual personal procurement plan Procurement pla

In this module, you will create a strategic annual Personal Procurement Plan by External analysi

following these proven steps

Internal analysi

Linking your company’s strateg Supplier plottin

External & internal analysi

Building your procurement plan
Supplier plottin
Goal setting & action plan

The result will be a structure that properly reflects the goals and objectives of
your organization. By the end of this module you will know how to achieve your
goals in your upcoming negotiations.
Module 2
Content
What you can expect

How to form a negotiation strateg

How to get in your counterpart's min

2. Strategy per negotiation

Power palance, how to compare supplier

In this module you will learn everything to create a powerful supplier

negotiation strategy.

Negotiation style

You will form this strategy by learning how to get in your counterpart’s mind Negotiation Strategy goalsettin

and how to compare suppliers. Templates will help you with clear goalsetting.
BATNA
You will learn how BATNA, negotiation styles, and carrots and sticks will help

you to achieve these goals.

Carrots and sticks

Negotiation team
We will teach you step by step to take a comfortable seat at the negotiation

table.
Module 3
Content
What you can expect

Negotiation skills

Negotiation opening
3. How to achieve top deal results

Reservation price & ZOPA

The third and final module is about the actual negotiation: get better deal

results by implementing our actionable negotiation strategy.

Negotiation psychology

Endless negotiation tactics and psychological tricks will help you to gain the Questioning and listening skills

upper hand in your negotiations. Our proven templates will help you close
Negotiation tactic
better deals.

Non negotiable

To become successful and master the art of negotiation, there are some key
Walk away poin
areas that we will teach you to unlock your full negotiation power. In short, by

the end of this module, you will know how to achieve deal results you have
How to keep track of proposal

been dreaming of. Let’s get started!

Negotiation mistakes
Proven online learning
For procurement & sourcing professionals

Real-world projects

Develop practical skills through learning from real-world

examples and study dozens of inspiring case studies.

Self-paced online learning

Learn anywhere, anytime, and at your own pace with our

fully online training program.

Personal coach & practitioner community

Contact your personal coach if you need any assistance

or input, and collaborate with procurement professionals
around the world

 
Grow your skill set
Enroll today

1 Start your enrollment here

2 Fill out your (company) billing address and payment details

3 Log in to your personal study environment account

Enroll now

“Very useful course, many actionable strategies”