Supply Chain Logistics ManagerInterview Questions
A Supply Chain Logistics Manager (also called supply chain managers or logistics managers) is a staple of middle management and typically oversees the storage and movement of company inventory.
Their duties include evaluating budgets, arranging orders, and coordinating with suppliers and distributors. The logistics manager also oversees the management of warehouses and distribution points, planning shipping routes and keeping track of large inventories.
A Supply Chain Logistics Manager’s responsibilities include:
Supervising one or more distribution points for inventory.
Managing large numbers of employees in different roles.
Ensuring products are received and delivered according to schedule.
Managing inventory and budgets.
Planning shipping routes.
Coordinating with suppliers and distributors of products.
A Supply Chain Logistics Manager’s skills include:
Lead cross-functional teams across different departments.
Maintain and develop asset management processes.
Appropriate IT skills for tracking inventory and budgets.
Develop standardized training procedures.
Analytic and problem-solving skills.
A Supply Chain Logistics Manager is required to have a minimum of a Bachelor’s Degree in business or a similar area of education, but a Master’s Degree is commonly found in the field as well. Several years of experience working in logistics and/or a managerial position is expected for positions overseeing large shipping operations.
Salaries for Supply Chain Logistics Managers range between $84K to $142K, with the median being $110K.
Factors impacting the salary you receive as a Supply Chain Logistics Manager include:
- Degrees (Bachelors, Masters)
- Years of experience
- Types of operations managed
- Reporting Structure (Seniority of the manager you report to)
- Level of performance - exceeding expectations
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Supply Chain Logistics Manager Interview Questions
Question: Why did you decide to pursue a career in supply chain logistics?
Explanation: This is a typical question which the interviewer will use to start the interview. The purpose of this question is to begin the conversation, learn more about your background, and collect some information they can use throughout the interview. This type of question provides you the opportunity to direct the interview towards an area that you are comfortable with and have prepared for.
Example: "I have always been fascinated with how goods move from production, through distribution, and onto their final destination. Additionally, I've always enjoyed organizing things, even as a child. When choosing my major in college, I decided to explore fields that combined these two interests. I learned about supply chains and logistics and fell in love with this profession. I excelled in my classes related to these disciplines, and when it was time to look for a job, I immediately targeted supply chain operations. I have never regretted this decision."
Question: Can you describe a recent process improvement you developed and implemented?
Explanation: Employers look for job candidates who can do one of three things for them; make money, save money, or save time. In supply chain and logistics, making operations more efficient and improving processes is a key skill a candidate should possess. It would help if you were prepared to provide examples of how you have done this in the past.
Example: "In my last position, I observed that our warehouse staff took a long time locating certain items. I met with a foreman and discovered that they were storing items based on when they arrived at the warehouse. This required the workers to determine when the items arrived and then go to the areas where they are stored to sort and select the ones they needed. Working with the supervising staff, we developed a system where all items were stored according to their product and sub-class classes. We also adopted a FIFO system, placing newly arrived items in the rear of the storage areas. This system enabled the workers to quickly find the items they needed and keep the inventory fresh by selecting the older items first."
Question: What is your communication style, and how do you keep senior management apprised of developments in the supply chain?
Explanation: One of the key skills any manager must possess is the ability to communicate effectively. Interviewers will often ask about your communication style and the techniques you use to keep senior management apprised of the operations you manage.
Example: "I would characterize my communication style as being direct and easy to understand. When communicating both orally and in writing, my goal is to get the message across so that the audience understands it and can act on it. I use the same style when creating reports to the management team. I start with a summary, followed by my recommendations. I conclude the communication with the facts and data that support my conclusions. I've found this is both effective and efficient."
Question: What experience do you have negotiating contracts with new suppliers?
Explanation: Another key role for a supply chain logistics manager is to work with suppliers. This includes negotiating contracts, resolving issues, and developing relationships, so the suppliers give your organization preferential treatment. When discussing your negotiation style, you should emphasize your goal of reaching win-win solutions that benefit both your organization and the suppliers you work with.
Example: "I have a great deal of experience negotiating contracts with suppliers. I learned this skill under a senior supply chain manager's tutelage in one of my earlier positions. He taught me to understand what the other party needed and to make concessions, which benefited them at no cost to my organization. I always seek agreements that benefit both parties. This helps to establish and maintain long-term relationships and prevents the need to find new suppliers, which is expensive and time-consuming."
Question: How experienced are you with accounting practices, and what types of financial management software are you familiar with?
Explanation: Even though it is not your primary responsibility, you need to be familiar with accounting practices as a supply chain logistics manager. You'll be asked to review financial reports and understand how to use them to manage your business. You should have some background in this either from your formal education or work experience.
Example: "I am very familiar with GAAP accounting practices, common financial reports, and using financial ratios to understand how the business is performing. The most common financial management software I have used in the past is from Intuit. I have also used Peachtree accounting software. Both of these perform similar functions, but I prefer QuickBooks from Intuit due to its ease of use and the way it interfaces with other financial applications."
Question: How do you build and nurture relationships with domestic and international vendors and suppliers?
Explanation: This is a follow-up to an earlier question. During an interview, you can anticipate follow-ups when you provide an answer to a question. This indicates that they have a specific interest in the topic or want to explore it in more detail. Follow-ups can occur at any time during the interview, and not necessarily right after you've answered a question about the same topic. This method of interviewing helps companies ensure that your answers are consistent.
Example: "I believe that one of the most critical responsibilities of a supply chain logistics manager is to develop and nurture strong relationships with the company's suppliers. This helps the organization obtain the best price, quickest deliveries, flexibility in managing the supply chain, and preferential treatment when needed. Maintaining long-term relationships as less expensive and more efficient than having to develop new relationships frequently due to disagreements you may have had with your current vendors."
Question: What is your process for enforcing ISO requirements and health regulations in the warehouse operations you manage?
Explanation: ISO and health regulations are critical issues for any supply chain, logistics, or manufacturing organization. Being aware of these and how they impact the organization's operations is critical for this position. Additionally, being ISO 9001 certified is often required for organizations doing business internationally or with large customers. Your answer to this question should demonstrate your knowledge of this area and briefly describe how you enforce the requirements dictated by ISO.
Example: "Every organization I have ever been associated with has been ISO 9001 certified. This is critical because it provides guidelines for the operations and is often a requirement from the suppliers and customers we deal with. Health regulations are equally important. Maintaining a healthy and safe work environment enables the organization to function smoothly, with fewer accidents and less downtime. My method for enforcing this is to first educate all the workers about these regulations and the behaviors they mandate. We then do periodic checks to ensure that the company maintains certification to ISO 9001 and the local health and safety regulations. Finally, we maintain documentation that demonstrates our compliance with these regulations."
Question: What steps would you take if one of your suppliers announced an increase in their prices?
Explanation: This is an example of an operational question. Operational questions seek to understand how you go about doing your job. The best way to respond to an operational question is directly and succinctly. The interviewer will ask follow-up questions if they want to explore the topic in more detail or have a special interest in this area.
Example: "If a supplier announced a price increase, the first thing I would do would be to contact my sales rep and set up a meeting to discuss this. I would seek to understand the reason behind the price increase and additional details about it. Once I had this information, I would find out how much flexibility the supplier had and whether we could agree to reduce the impact of the price increase. Negotiable items may include volumes, flexible delivery schedules, longer-term commitments, or acquiring of additional goods and services from the same vendor."
Question: How do you stay up-to-date with logistics management trends and technologies?
Explanation: The field of supply chains and logistics is evolving rapidly due to advances in technology, transportation, and regulatory issues. Staying abreast of these is an important task a supply chain and logistics manager must undertake. It would be best if you had a clear plan for maintaining your knowledge about issues related to supply chains and logistics and describing this to the interviewer.
Example: "Staying on top of developing issues within the field of supply chains and logistics is challenging. To do this, I subscribe to several online magazines and blogs about our industry, attend annual conventions and meetings, meet with my suppliers to learn about new developments they are working on, and frequently interact with my peers in the industry. All of this helps me to stay on top of the latest trends and developments and enables me to select which ones are appropriate for our organization."
Question: What has been the most challenging project you've managed, and how did you ensure it would be successful?
Explanation: An interviewer will ask this type of question to understand how you handle challenges and see if the challenges you work on align with their operations. When preparing for an interview, you should do a great deal of research about the company, the job you are interviewing for, and anything else that will help you organize your answers. If you did this before the interview, you should be able to easily answer this question with an example that aligns with the organization's operations.
Example: "Without a doubt, the biggest challenge I had recently was dealing with the impact of the COVID-19 pandemic. When it was first announced, we completely shut down operations and furloughed all of our employees. As we learned more, we were able to resume limited operations. I looked for different ways to remain in compliance with the regulations, keep on employers healthy, and still operate to keep the organization in business. We were successful at this and are now at full operational status."
Additional Supply Chain Logistics Manager Interview Questions
What makes you the right choice for this position?
How do you go about delegating tasks in the workplace?
How do you ensure your team is performing at maximum efficiency?
How do you analyze employee performance?
How much experience do you have training new logistics personnel? Describe that process.
How would you handle a supplier who failed to provide the requested product or amount by a particular deadline?
What logistics software are you most familiar with? Which do you prefer to operate with?
How would you deal with complaints about a product not being shipped?
How do you determine what tasks to manage yourself and what tasks to delegate?
How would you handle situations where a budget is exceeded?
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