TNT India Procurement Executive Interview: Rounds, Questions and Preparation

What the job involves

A Procurement Executive in logistics and supply chain buys goods and services needed for operations, such as vehicle parts, fuel, packaging, and third-party services. The role involves sourcing vendors, negotiating prices, issuing purchase orders, tracking deliveries, and ensuring compliance with company policies and budgets. Day to day, you coordinate with warehouse, transport, and finance teams to keep costs down and supply uninterrupted.

Role and Technical Knowledge

1. 1

   What are the key steps in a procurement cycle from requisition to payment?

   Mention need identification, vendor selection, PO creation, delivery tracking, invoice verification, and payment. Show awareness of documentation and approvals.

2. 2

   How do you evaluate and select a vendor for logistics services like local transportation?

   Cover criteria such as cost, reliability, fleet availability, compliance, past performance, and service level agreements. Mention using a weighted scorecard.

3. 3

   Explain Incoterms that are commonly used in logistics procurement, such as FOB and CIF.

   Define FOB (Free On Board) and CIF (Cost, Insurance, Freight) and explain who bears cost and risk at which point. Relate to import/export of logistics equipment.

4. 4

   What is total cost of ownership (TCO) and why is it important in procurement?

   Explain that TCO includes purchase price plus costs like maintenance, fuel, training, and disposal. Show how it helps choose the most economical option over time.

Practical Scenarios

1. 5

   A critical supplier of vehicle spare parts delays delivery by two weeks, affecting fleet availability. What do you do?

   Outline immediate actions: contact supplier for expedited shipping, check alternative vendors, inform operations, and update stakeholders. Suggest long-term fixes like dual sourcing.

2. 6

   You find that a vendor's invoice is 10% higher than the agreed purchase order. How do you handle it?

   Say you would verify the PO, check for additional charges or errors, and discuss with the vendor. Emphasise not processing payment until resolved and following company policy.

3. 7

   You need to procure packaging material urgently for a peak season, but the approved vendor cannot meet the volume. What steps do you take?

   Propose temporary sourcing from alternate vendors, negotiate rush fees, and get management approval. Highlight risk mitigation and keeping a vendor backup list.

4. 8

   How would you negotiate a better rate with a transporter who claims fuel prices have increased?

   Suggest analysing fuel price trends, asking for a breakdown, proposing a fuel adjustment clause, and benchmarking with other transporters. Aim for a win-win solution.

Behavioural and HR Questions

1. 9

   Tell me about a time you convinced someone to change their mind or agree to your proposal.

   Use the STAR method: describe the situation, your approach, the outcome, and what you learned. Focus on listening and presenting facts.

2. 10

   Why do you want to work in procurement in the logistics sector?

   Connect your interest in supply chain efficiency, cost management, and vendor relationships. Mention how logistics procurement directly impacts service levels.

3. 11

   How do you handle pressure when multiple purchase requests come in at the same time?

   Explain prioritisation based on urgency and impact, using tools like to-do lists or ERP dashboards. Mention communicating timelines to stakeholders.

4. 12

   Where do you see yourself in three years in this role?

   Show ambition to grow into senior procurement or category management, and mention gaining certifications like CIPS or learning advanced ERP. Keep it realistic and aligned with the company.

Sector and Compliance Awareness

1. 13

   What are the key compliance issues in procurement for a logistics company?

   Discuss anti-bribery, vendor due diligence, GST compliance, and adherence to company procurement policies. Mention documentation and audit trails.

2. 14

   How does procurement contribute to sustainability in logistics?

   Talk about choosing eco-friendly packaging, fuel-efficient vehicles, and vendors with green certifications. Link to reducing carbon footprint and meeting client expectations.

3. 15

   What is the role of a procurement executive in managing supply chain risks?

   Explain identifying single-source risks, developing contingency plans, monitoring supplier financial health, and maintaining buffer stock for critical items.

4. 16

   How would you ensure that procurement activities align with a company's budget and cost-saving targets?

   Mention tracking spend against budget, conducting regular reviews, negotiating volume discounts, and using spend analysis tools. Emphasise reporting variances to management.