Tata AutoComp Systems Purchase Executive Interview Questions and Answers

Negotiation is a strategic discussion aimed at reaching an agreement, crucial for effective purchasing.

• Negotiation involves communication between parties to reach a mutually beneficial agreement.

• It is important for securing favorable terms, such as price, quality, and delivery schedules.

• Example: A purchase executive negotiating bulk discounts with a supplier can significantly reduce costs.

• Effective negotiation bui...read more

The number of team members in raw material planning varies based on company size and complexity of operations.

• Typically, a raw material planning team consists of 3-10 members.

• Larger organizations may have specialized roles such as demand planners, inventory analysts, and procurement specialists.

• For example, a manufacturing company might have 5 members focusing on different materials like metals, plastics, and chem...read more

Open PO and Close PO are different in terms of their status and completion.

• Open PO refers to a purchase order that is still active and has not been fully processed or completed.

• Close PO, on the other hand, refers to a purchase order that has been fully processed and completed.

• Open POs may still require actions such as receiving goods or services, invoicing, or payment.

• Close POs indicate that all necessary actions ...read more

Direct suppliers provide goods or services directly to the company, while indirect suppliers provide goods or services to the direct suppliers.

• Direct suppliers are involved in the production process, while indirect suppliers are not.

• Direct suppliers are usually larger and have a closer relationship with the company.

• Examples of direct suppliers include raw material providers, while indirect suppliers include packag...read more

Handling critical situations with suppliers requires proactive communication and contingency planning.

• Establish clear communication channels with suppliers

• Develop contingency plans for potential supply chain disruptions

• Regularly review and update supplier contracts

• Maintain a diverse supplier base to mitigate risk

• Monitor supplier performance and address issues promptly

• Collaborate with cross-functional teams to iden...read more

There are three types of purchase orders: Standard, Blanket, and Contract.

• Standard Purchase Order: Used for one-time purchases of goods or services.

• Blanket Purchase Order: Used for recurring purchases of goods or services over a period of time.

• Contract Purchase Order: Used for long-term purchases of goods or services with a specific supplier.

• Each type of purchase order has its own unique characteristics and is use...read more