Oracle Fusion Applications are substituting traditional methods in many organisations. Hence, the future is bright for those who aspire to build their career in supply chain or finance or HCM. However, to get into secure and highly payable jobs, you must prepare well for the interview. As one of the top oracle fusion training institutes in Bangalore, IQ Stream makes sure that all its participants/trainees get their dream jobs in reputed organisations. Besides our Oracle Fusion training programs, we also offer interview assistance to our trainees. So, here are 20+ Oracle Fusion Procurement Interview Questions, which you might encounter during your job interviews.
Read on to know about the Oracle fusion cloud procurement interview questions asked.
What is the Procurement Order? What are the different types of PO’s?
Purchase Order or PO is a commercial document. It is the first official order issued by a client to the provider. A PO includes details about product quantity, types and services the supplier will provide to the buyer.
There are four types of PO’s:
- Standard Purchase Order
- Planned Purchase Order
- Blanket Purchase Agreement, and
- Contract Purchase Agreement
Define Purchasing Category?
A purchasing category group purchased items with similar traits. It is like a code accustomed to categorise purchased items based on similar characteristics like plastic, paints, bolts, etc. For Oracle Fusion Procurement, each item must belong to a purchasing category.
What does Supplier management do?
- Supplier Management is responsible for maintaining the suppliers’ information accurately.
- It collects a supplier’s details through self-profile management and external questionnaires.
- SM promptly alerts whenever any new information comes in that can affect supplier capabilities and risks.
What is meant by the term “Freight On Board” (FOB)?
It is the point (or even location) where the ownership title of goods is transferred from the seller to the buyer.
Oracle Fusion Procurement Interview Question
Some oftenly asked Oracle fusion procurement interview questions are:
When did Oracle announce Fusion?
In September 2010, Oracle made several announcements during the Oracle OpenWorld. Of the many announcements, one was that of the Oracle Fusion Applications. Oracle introduced it as the new set of Oracle Applications.
What happens to your existing application when you install Oracle Fusion Applications?
One of the best things about Oracle Fusion Applications is that they can co-exist alongside the existing applications. I too believe that implementing Fusion Applications is no more a “rip and replace” exercise. Instead, you can quickly deploy one or more pillars of Fusion Applications to take advantage of their unique functionality. You can achieve this by integrating them with your current applications seamlessly.
Describe the term “negotiation requirement”?
It’s a set of questions to seek high-level information about the suppliers responding to a negotiation. You can obtain this information from the suppliers or internal evaluators.
How do you calculate Total annual cost?
You can calculate the Total Annual Cost using the equation:
TC = DC + (D/Q)S + (Q/2)H, where:
TC = Total annual cost
D = Demand
C = Cost per unit
Q = Order quantity
S = Cost of placing an order or setup cost
H = Annual holding and storage cost per unit of inventory.
How to use a PKI system in the supply chain?
Public Key Infrastructure (PKI) offers a strong linkage between business identities and transactions throughout the supply chain. In a PKI system, each user has two keys: a public key and a private key. These keys can be used for encrypting and decrypting information, for electronically signing electronic information, and for verifying the authenticity of their owner.
Explain your understanding of the supply chain performance indicators?
It consists of four types of indicators: Quality, time, financial, and productivity. Cp is a measure of process capability that compares the specification width with the process width.
Oracle Procurement Cloud Interview Questions
Explain your experience with Material management?
The material management department has the authority and responsibility of all activities related to the flow of materials in the organisation. As a part of this department, my responsibilities were:
- Responding to the market changes related to any product.
- Efficiently using the working capital.
- Maintain minimum inventory levels.
- Ensuring cooperation among team members.
- Analysing materials and supply to reduce cost.
- Providing the best customer services.
- Improve quality and ensure supplier performance.
Oracle Fusion Procurement Interview Questions
What are the setups for different planning method (Min-Max)?
- Setup the item in master-org and assign the item to the org for which Min-Max planning is used.
- Attributes, Inventory Planning method: Min-Max.
- Min-Max Quantity should be defined.
- Safety Stock method should be non-MRP Planned.
- Determine what should be the status of the Requisitions created for the planning.
Do this with profile option INV: Minmax Reorder Approval.
- IF Use ASL has been enabled, then Requisition will populate the supplier data from the ASL setup which is assigned to the item, Sourcing rules can be defined for this. Then, assign a sourcing rule to the item.
- In Inventory responsibility, under Planning run the Min-Max planning report with required parameter.
What are the valuation accounts used in Inventory?
- Material: An asset account that tracks material cost. For average costing, this account holds your inventory and in transit values. Once you perform transactions, you cannot change this account.
- Material Overhead An asset account that tracks material overhead cost.
- Resource: An asset account that tracks resource cost.
- Overhead: An asset account that tracks resource and outside processing overheads.
- Outside processing: An asset account that tracks outside processing cost.
- Expense: The expense account is used when tracking a non-asset item.
What are the different planning methods in Inventory?
There are five different planning methods in an Oracle Inventory:
- Min Max Planning
- Subinv Replenishment Planning
- Re-order point planning
- Periodic Automatic Replenishment
- Kanban Planning
Describe Risks Management in Procurement Contracts?
Risk management is an integral part of the procurement process at each stage. To execute the risk management process successfully, one should follow these five steps:
- Identify the risks before implementing the roadmap.
- Allocate risks to only those who are responsible for them.
- Reduce possible risks or threats.
- Use a roadmap to monitor the risks.
- Take an action plan against the threats and opportunities.
What do you understand by “supply chain management”?
It is basically defined as the management of the flow of goods and services. It also includes the storage and the movement of raw materials. With SCM, we get clear information about various aspects of the goods from storage to consumption. Also, the supply chain activities are planned, designed, managed, and executed with a clear objective. In most of the organisations, SCM is an integral part. Hence, it plays a crucial role in the success of any business.
What, according to you, are the benefits of a software-based Supply Chain Management process?
Profit! It is the most significant benefit of any software-based SCM. It can set a limit on the operational cost of any business. It allows you to keep records of goods and services without involving your workforce. It saves you a lot of paperwork and documentation. Further, it saves you time and efforts and reduces production cost to a great extent.
Can Supply chain management help to improve the financial position of an organisation?
Yes, SCM can help improve the financial state of any organisation. This is because SCM enables organisations to cut down on their supply chain cost with better control over the same. Organizations by implementing SCM can also become capable of minimising their fixed assets investments. Above all, organisations can enhance their overall profits.
What do you know about the Anti-dumping duty?
Basically, it is import duty. It is applicable when the goods imported show cost lesser than the actual price. Anti-dumping duty is imposed to avoid material loss in the country where it is imported.
Oracle Cloud Procurement Interview Questions
Practising these Oracle fusion procurement interview questions will help you crack the interview easily. Let’s have a look at some more:
What factors decide the declared value of carriage of a product?
Various factors are considered for this, including the overall weight of the product, handling instructions, shipping type, exact delivery location and delivery time. Generally, the shipper declares all these values on the lading. Also, it is a must for all the shippers to do so.
What do you call the process that involves buying the goods and raw material at the best available prices?
This process is known as procurement.
Imagine yourself as a logistician. Explain your key roles.
As a logistician, my prime responsibility will be to manage the complete supply chain. Besides, I will also be responsible for transportation-related activities and ensuring the storage of material in the right manner.
How many key flex fields are there in Inventory?
Seven KFF are there in Inventory:
- Account Alias
- Item
- Item Category
- Item Catalogues
- Stock Locators
- Sales Order
- Service Items
Name the different stages in a product’s life cycle.
Every product life cycle comprises five stages:
- Extraction
- Production
- Packaging and Transport
- Usage
- Disposal
If you need more assistance to crack your next interview, feel free to contact Oracle Mentors at IQ Stream. And if you want to enrol in our Oracle Fusion training program, write to us for a free quote. Our various Oracle Fusion training programs include:
- Oracle Fusion SCM Training Program
- Oracle Fusion HCM Training Program
- Oracle Fusion Financials Training Program
- Oracle Fusion Sales Cloud
For more Oracle fusion procurement interview questions and details regarding Oracle fusion training program, contact us: here.
All the Best!
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