Purchasing Agent Interview Question:

Can you give me an example where you have to lead the cost reduction programme?

Submitted by: Muhammad

Since I am a supply chain guy and my focus is primarily on KPI's like Inventory, On-Time Delivery, lead time reduction and so on and so forth, which, at times, I find it contradictory to the procurement guys main aim of cost reduction.

For example, I have gone into battle with some commodity managers who have agreed a very high batch size of machined parts to get the best price, which throws my Just in Time, lean means supply chain design out of the window! So, we need to find the right balance between cost reduction and best supply chain design to meet customer service targets and operational goals.
Submitted by: Muhammad