Top 21 Purchasing Agent Interview Questions In 2021 [With Answers]

Every organization ranging from trading to manufacturing to service providers needs the services of a purchasing agent whose primary duty is to enable cost-efficient and sensible purchases. A purchasing agent not only researches the prospective vendors and suppliers but also evaluates and negotiates the terms and offers in order to make a parsimonious and efficient purchase for the organization. The role of a purchasing agent is highly technical and requires him or her to be tactically efficient and highly analytical, so as to enable a purchasing agent to choose and accept the most profitable offer from the organization’s perspective.

21 Best Interview Questions

1) What Do You Understand By Tender and Bidding?

This question tests your core principles of efficient purchasing and its various techniques.

Sample Answer

Sir, it is a common practice to float tenders while making considerable purchases for an organization. A tender is a document that contains all the terms and conditions that relate to the purchase requirements of the organization along with a schedule of quantities. Upon floating a tender, interested seller parties or vendors can bid their prices based on and after considering the schedule. The party satisfying all the terms and conditions mentioned in the contract along with offering the lowest bid is selected as a vendor who will execute that tender.

2) How Effective Is Benchmarking In Accepting Quotations From The Vendors?

This question tests your knowledge and understanding of the various techniques and procedures to be followed while designing a purchase requirement.

Sample Answer

Sir, benchmarking is quite an effective and phenomenal technique that has proven to reduce the cost of goods and products procured from the outside market. By using benchmarking, a purchasing agent can design and fix appropriate prices for a product. Setting benchmarks not only uses the past knowledge relevant to the organization but also uses the current market information. Any quotation too high or too low from the identified and set benchmarks must not be accepted by the organization.

3) What Is A Buffer Stock?

This question tests your knowledge of the core principles of costing and purchasing.

Sample Answer

It is always a management-friendly practice to design and implement a buffer stock for all the categories of raw materials as well as finished goods. This simply means the reserves or the surplus that are deliberately created so as to conquer and meet any unexpected fluctuation in demand and supply factors. There are always a few goods that are perishable and have a longer lead time. It is common for business organizations to prepare a buffer stock for at least such items.

4) Please Explain The Concept Of Inventory Holding Cost.

This question tests your knowledge of the core principles of costing and purchasing.

Sample Answer

Whenever an organization purchases raw materials or finished goods, these are to be stored at a specified and designated place, known as a warehouse. This place usually incurs a fixed rent along with committed salaries and other regulatory taxes and fees. All such costs that are incurred while holding the inventory are known as inventory holding costs and such costs have a direct relationship with the purchase order. The higher the quantity mentioned in the purchase order the higher would be the inventory holding costs and vice versa.

5) What Is An Optimal Order Quantity?

This question tests your knowledge and understanding of the various techniques and procedures to be followed while designing a purchase requirement.

Sample Answer

In order to moderate and control the inventory holding costs, an organization must purchase an optimal order quantity so as to reap the benefits of savings in costs. An economic order quantity must be evaluated and ordered by categorizing them in batches so as to keep the ordering cost as well as transportation cost in check. The term optimal order quantity, simply means that ordering only those goods and products that are required by the organization in a moderate and thoughtful quantity.

6) How Effective Is The Calculation Of Variances In Setting Responsibilities?

This question tests your knowledge of the core principles of costing and purchasing.

Sample Answer

It is quintessential and necessary to calculate variances and standard deviations in order to fix responsibilities and become cost-efficient. It is common for purchasing agents to falter and purchase goods at a relatively higher price leading to a higher cash outflow and thereby depleting the valuable working capital reserves. In order to keep this in check, it is a common practice for organizations, to use the principles of standard deviation, to calculate variances.

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7) What Do You Mean By Comparison Of Technical Bids?

This question tests your knowledge of the bidding processes and tender systems.

Sample Answer

Sir, this is usually the third step in a bidding process conducted after floating tenders. In this process, the bids of all the qualified and eligible vendors are compared with each other and the bidder who has quoted the lowest bid is selected. However, this selection of the bidder is still provisional and temporary, until, he or she deposits earnest money or performance guarantee, as per the terms of the contract/tender.

8) Name The Four Elements Included In The Life Cycle Costing Of A Product.

This question tests your knowledge of the core principles of costing and purchasing.

Sample Answer

Sure, sir, these are:

  • Purchase cost of the product
  • Operating cost of the product
  • Maintaining and supporting cost of the product
  • Disposing cost of the product

9) What Motivates You To Work?

This is a trending interview question through which an interviewer wants to know the primary factors that motivate you to work hard and push your limits. These factors are usually different for different individuals and depend largely upon the individual circumstances and conditions, that one experiences in one’s life. It is advisable that you extend only genuine and true responses.

Sample Answer

Sir, it is a highly subjective question and in my opinion, would vary largely with the personal conditions of an individual. I am a person belonging to a lower-middle-class family having the responsibility of feeding more than 5 members. This prompts me to earn a handsome salary and contribute towards the welfare of my family members. Hence, money is the primary motivational factor for me and prompts me to work hard and push my limits so as to achieve my targets and goals.

10) When Can You Start?

It is usual nowadays for interviewers to take a quote of your availability during the interview session itself. It must be kept in mind that this question in no way guarantees your selection and hence you are advised to keep your emotions and feeling in check.

Sample Answer

  • For Employed Individuals: Sir, I am currently working with an organization and hence I express my disability of joining the organization immeidiately. However, I will serve a notice to my current employer by the end of this week and most probably would get a relieving letter by the end of (____mention the date____). Hence, I will be able to join the organization on or after this date.
  • For Freshers/Unemployed Individuals: Since, I am not working anywhere and have absolutely no prior obligations to fulfill, I express my desire to join this esteemed and wonderful organization on an immediate basis.

11) Which Is Your Favorite Animal?

This question might look simple and most underprepared candidates might respond with a dog or a cat. However, for the prepared blokes, this is a tricky and tactical question that has the ability to evaluate your personality and efficiency to the core. Hence, this question must be prepared in the most serious manner.

Sample Answer

Sir, my favorite animal is a Bald eagle. I have studied this bird for a long time and I was deeply and thoroughly impressed by its speed, determination and concentration. Watching a bald eagle waiting for its prey at the cliff of the edge is a site to watch, which is not only thrilling and enthralling but also teaches a person lots of emotions and skills. I wish to replicate the concentration levels and determination of the bald eagle in my own personal life.

12) When Will You Be Forced To Purchase An Inferior Quality Of A Product?

This is a tricky interview question that evaluates your mindset and personality as well as your purchasing attitude.

Sample Answer

Sir, business organizations operate in a dynamic world and are marred by various factors such as legal, political, social-economic, etc. No organization and its purchasing agent wants to purchase a product of inferior quality, but in some situations, there is just no option. Say, there is a widespread and sudden natural calamity destroying the major supplier’s production abilities. This would enable new entrants to start similar manufacturing processes and since they are still novices, the goods manufactured by them would be inferior and sub-standard. However, an organization would be left with no choice, in such a situation, as it still wants to carry on business.

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13) What Do You Mean By Semi-Finished Goods?

This question tests your knowledge and understanding of the practical working procedures and product life cycle.

Sample Answer

Sir, the concept of semi-finished goods is primarily applicable to manufacturing industries and corporations. In order to understand this concept, we must understand the phenomenon of work in progress which can be defined at different stages of production by assigning relevant percentages. Whenver, finished goods are processed but this conversion is yet unfinished and incomplete, this leads to the development of a semi-finished product. The value of such a product varies and depends upon the stage at which the product is currently getting processed.

14) Tell Me Your Biggest Weakness.

This is a common interview question using which an interviewer wants to evaluate and assess your personality and your level of self-awareness.

Sample Answer

Sir, no person in this world is perfect and I am no exception. I too have a lot of weaknesses in me, which I strive to recognize and try to eliminate them. Since you are asking the biggest weakness, I would like to share with you one of my closest and most stickiest weakness. I am not able to concentrate on a particular thing for a long period of time that adversely affects my performance and focus. I am on path to eliminate this shortcoming of mine, and in a quest to do so, I am already performing regular sets of meditation for at least 5 days a week.

15) How Efficient Are You While Working In Stressful Operating Conditions?

It is a common habit of interviewer to ask about your viewpoints and approach towards working in hectic and unfavorable working conditions.

Sample Answer

Sir, I completely understand the relevancy of this question and also understand the need for working for longer hours of time without adequate breaks and recesses. Be assured and convinced that I have the ability, focus and concentration to work in even the most disturbing and stressful working environments. For this, I always maintain my physical strength by taking part in regular exercises as well as strength training for at least 6 days a week.

16) How Efficient Is Your Computer Literacy? Rate Yourself On A Scale Of One To Five.

This is a trending interview question wherein interviewers assess your faith and reliance upon your own capabilities and skill in relation to computers.

Sample Answer

It would be difficult to imagine a world without computers and ancillary technology. Computers are the most integral part of the system and business houses nowadays so much so that without them it is impossible to engage in business transactions and actitivites. I feel proud and pleased to say that I have an expert knowledge in the field of computers and I am able to operate almost all the prominent operating as well as management software. I have also done a computer literacy course of 6 months duration. Considering all the facts, I would like to give myself a 4.8.

17) How Efficient Are Your Communication Skills?

This question is a perfect match for this vacancy. Being a purchasing agent, you are required to communicate, negotiate and interact with a number of buyers and vendors. In order to do so effectively and efficiently you are expected to have a tactical mind as well as superior communication skills.

Sample Answer

Sir, I have superior and effective communication skills. Such skills largely depends upon a person’s ability to think tactically and analytically before making a speech. Further, a complete knowledge of the market, a deligent research and a varying speech, improves and contributes towards the communication skills. I believe, I am an extrovert and with an experience of 3 years in a similar role, I have a developed sense of communication as well as negotiation.

18) How Will You Handle A Situation When You Recieve A Tampered/Manipulated Bid?

This question tests your knowledge and understanding of the practical working procedures.

Sample Answer

This concept and pehonomenon applies to the physical and manual tendering process. A bid can be usually tampered or manipulated when the bidders form a cartel and deliberately try to enhance the price of the tender. This leads to loss for the tender inviting enterprise and a purchase agent must, using the prior as well as current market knowledge, evaluate the validity and effectiveness of the bids. If I ever receive such manipulated bids, I would reject and call off the tender.

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19) Explain The Term Anti-dumping Duty?

This question tests your understanding of the core principles and basics of the import/export.

Sample Answer

Sir, it is common, especially for third world countries, to manufacture goods and products at a highly cheaper rate, which are ultimately to be dumped and exported to countries with expensive labor. Such a cheap import destroys the domestic market of the country and leads to higher outflow of foreign exchange. In order to prevent such occurrences, it is common for countries to impose a anti-dumping duty upon the product which is getting dumped in the country. This duty enhances the price of the product and it is brought to the level of domestic price prevailing in the country.

20) What Is Your Major Strength?

This is a common interview question through which an interviewer wants to know your level of self-awareness and the extent to which you have scrutinized your personality. This question appears in several interview sessions held across the world and hence must be prepared in a serious manner. It is recommended that you avoid generic answers and only extend genuine responses.

Sample Answer

In my humble opinion, my ability to stand tall and not crumble under unfavorable and unexpected situations and circumstances is my biggest ability and strength. This not only helps me to make informed and decisive business decisions at crucial junctures of time but also enables me to maintain my own personal performance with precision and efficiency. I hope to continue and further hone this strength while working with your esteemed organization.

21) Do You Have Any Questions For Us?

It is a common habit of the interviewers to ask this question at the fag end of an interviews session. This question enables a candidate to ask a few questions from the interviewer in relation to the organization, its work ethics, and various policies. This question must not be skipped at any cost as that would depict either the candidate is not fully prepared for the interview process or he or she is not serious about the opening advertised.

Sample Questions

  1. What are the various policies implemented by the organization in relation to the harassment and bullying at the work place?
  2. Please explain the procedure for calculating paid leaves followed by the organization.
  3. What are the various health benefits extended by the organization to its employees?
  4. What are the work timings for this position?
  5. Does company provides maternity/paternity leaves to its employees on paid basis?

References

  1. https://www.degruyter.com/document/doi/10.4159/9780674020900/html
  2. https://books.google.com/books?hl=en&lr=&id=KBYtEAAAQBAJ&oi=fnd&pg=PP1&dq=Top+21+Purchasing+Agent+Interview+Questions+In+2021&ots=eDQvFS9Iiq&sig=j2KN_M9zRUilxiS_lC8e9ZBQRCk

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