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18 Most Common Supply Chain Management Interview Questions & Answers [For Freshers & Experienced]

There are a lot of sectors that have witnessed significant growth since the pandemic and emerged as economic boosters. Supply Chain is one among them.

According to a recent survey, the global market for supply chain management is estimated to grow by 11.2%, reaching a value of US$ 37.41 billion by 2027, up from US$ 15.85 billion in 2019.

Naturally, there is increased interest in this field and if you can land a job in this field, you are bound to have a promising career ahead. The supply chain sector requires exceptionally skilled and talented individuals.

The first step to landing a job in this sector is to enrol in a supply chain management course and then bag an interview with an established company.

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Granted it is a tough nut to crack, but you can do well if you manage to impress your interviewers with your knowledge of the field.

So, here is a list of supply chain management interview questions and answers to help you out.

Top 18 Most Frequently Asked Supply Chain Management Interview Questions and Answers

1. Define Supply Chain Management.

Supply chain management, or as it is popularly called, SCM is defined as the thorough supervision of every aspect of the supply chain (including raw materials, data, and finances) from the start to finish.

In the process of creating and satisfying demands, supply chain management works to integrate and stabilize the flow of processes from the production of goods to their eventual delivery.

This puts executives in supply chain management in direct touch with everyone, from suppliers to customers.

2. What is the Ultimate Objective of Supply Chain Management?

Supply chain management is driven towards achieving efficiency in its operations and maximizing productivity in an organization. Companies hope to satisfy the demands of people by delivering the right goods to them on time while profiting from doing so.

While streamlining the whole process, supply chain managers ensure that waste is minimized, and there is productive utilization of everyone’s time, allowing the organization to cut costs. All of these smaller goals lead to one ultimate goal, which is to achieve efficiency.

3. What Do You Mean by Affreightment ?

The term affreightment arises from freight. It refers to the amount of money that is paid to a charterer in return for renting his vessel to carry the goods.

4. What Comprises Supply Chain Management?

Supply chain management is incomplete without including collaborative and integrative practices with its channel partners. Suppliers, retailers, wholesalers, distributors, and customers are involved in the success of a supply chain operation.

Supply chain managers must collaborate with suppliers, keep track of demand, integrate the services of wholesalers and distributors, and effectively communicate with everyone involved, including customers, in the process.

5. How Do You Define SKU Keeping in Mind the Supply Chain?

SKU stands for a stock-keeping unit. It is related to the inventory management field. When we say SKU, it refers to a particular item stored in a particular place in the inventory.

6. What Do You Understand by Compliance Labels? 

A compliance label for a product is made with due attention to the standardized procedures of the industry associated with the product. It plays a crucial role in import/export where it is in the hands of the government agencies to define and check these label requirements for exported or imported products.

7. What is the Role of Logistics in Supply Chain Management?

The entire process of monitoring the transporting of goods and services from one place to its intended destination is termed as “logistics.” The term logistics was originally used to refer to the transportation of equipment to military armies on the ground.

However, in modern times, logistics is not just limited to its definition. It can shapeshift very easily to fit into the demands of an organization. It is more than just delivering the final goods to the consumers.

The logistics department is also tasked with the responsibility of warehousing, managing outbound and inbound transportation, planning to meet demands, and handling materials. They are also in charge of inventory management, transport management, and fulfillment of orders.

Also Read: Demand of Supply Chain

8. What is the Importance of Logistics?

Logistics is important because if the consumers do not get their desired goods, the whole point of production is invalid. Logistics might seem like an insignificant process that is carried out at the end, but it carries the load of the entire process of production.

Logistics isn’t something that comes into play when the goods are manufactured and ready to be shipped. It is a process that is active throughout the production. In fact, logistics sets into motion even before the production starts. The procurement process of raw materials is the role of logistics.

Moving on, it also takes care of transportation and warehousing. Finally, when it comes to the delivery of goods, everyone is aware of the charm that logistics works in bringing our goods safely — and on time — to us.

9. What is the Difference Between Supply Chain Management and Logistics?

Supply chain management and logistics are two very different processes. While supply chain management is confined to the bigger picture, logistics is comparatively small.

  • Logistics is all about producing the goods in one organization and distributing them amongst the consumers who demand the goods.
  • Supply chain management, on the other hand, is a group of organizations that strive to distribute goods in voluminous quantities among their consumers. In this sense, it is a large scale operation involving multiple moving parts.

10. What are the Activities Carried Out in Logistics? 

Logistics operations are mainly confined to three broad categories. This includes collecting goods from the supplier, warehousing, and delivering to intended consumers.

However, that’s just a very vague definition of everything that goes on at the operational level in logistics.

To begin with, the desired resources are picked up from the supplier, and packaged for transportation. This can be via air, sea, or road. At the destination, the goods are cleared of customs and delivered to the warehouse where they are stored.

While at a storage facility, these goods are checked for quality and are grouped accordingly. Details of the inventory are checked for deficits if any.

In case there is a shortage of goods, replenishing is done. Goods are then sent to stores or wholesalers for distribution. Logistics also covers the returns process.

In short, logistics is responsible for procuring goods from suppliers, managing received goods, and facilitating delivery to end customers.

11. Define Advance Shipping Notice. 

It is sent to the customer before the delivery. It contains all the information about the shipment of their products. It comprises details related to the carrier of the shipment, when the shipment can be expected, etc.

12. What Do You Understand by Anti-Dumping Duty?

It is an import duty that is levied when the charges of the imported goods are lower than the decided price in the market of the exporter’s country. This results in deficits in the domestic market of the importing country.

13. Can You Explain Less Than Truckload?

“Less than truckload” occurs when the transport owner and shipper enter a contract where the owner is not paid in full for the truck. The price of the shipment is taken into account depending on the weight of the goods and the distance it will travel.

14. What is Dead Weight Tonnage?

The difference in a ship’s laden weight and unladen weight is known as dead weight tonnage. What this means is, that the weight of all items on the ship is taken into account except for the weight of the ship.

15. What Do You Mean by Blanket Way Bill?

A Way Bill containing two or more consignments of freight is known as Blanket Way Bill.

16. What are the Main Issues Transportation Faces During Warehousing? 

The process of warehousing is not as simple as we think. It suffers from tracking and communication issues. A warehouse’s safety is a major deciding factor for storing goods.

Any delays are accounted for and the costs incurred are also sometimes concerning.

17. During Warehouse Transportation, What are the Safety Points to be Taken Care of?

Warehouse transportation is not the safest process out there. It comes with its own set of risks. One must always be careful enough to dodge them.

  1. Sharp objects must be cleared off right away.
  2. Any loose flooring or those that can cause tripping should be taken care of.
  3. Spills should also be taken care of right away.
  4. Fire exits should be functional.
  5. Proper use of garbage cans should be encouraged.
  6. Items should be placed in their designated spots.
  7. Cords and wires must have a safe separate space away from the walking space

18. What are the Main Challenges Related to the Supply Chain that Companies are Currently Facing?

The supply chain is a vast and fruitful field, brimming with immense opportunities for exploration and experimentation. In the present competitive market, companies that do not invest in supply chain management end up paying a hefty price.

These companies fail to take into account many crucial factors like:

  • Rising costs throughout the supply chain.
  • Consumer demands for improved delivery speed and customer satisfaction.
  • Volatile risks in the supply chain such as market fluctuations, trade disputes, etc.
  • The complexities of risk and cost management.

Although an interviewer might not ask each one of these questions to you during the supply chain interview, we hope this article gave you a good idea of what you should expect.

Conclusion

Supply chain jobs spread through a vast canvas, both nationally and overseas. Thus, you can choose job profiles either locally or regionally within the country. And if you love travel-oriented jobs, many supply chain managerial roles require traveling both nationally and internationally from time to time.

As more and more companies realize the true potential of a well-articulated supply chain management system, the demand for skilled and certified supply chain professionals will increase simultaneously.

The best way to capitalize on this opportunity is to enroll in a certification program such as upGrad’s Global Master Certificate in Integrated Supply Chain Management.

Global Master Certificate in Integrated Supply Chain Management

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