Pharmaceutical Supply Chain Management or Commercial Department is a core part of pharmaceutical industry. They maintain the inventory up-to-date as per company requirements.

Few common interview questions and answers related to supply chain management department are mentioned below -


Q. What is supply chain management?

Supply chain management is the management and planning of all supply chain activities that take place in a business. This can include  logistics, sourcing and product development.


Q. What are the main functions of supply chain management department?

  • Supply chain management keeps the flow of money, materials, and information
  • Sourcing new suppliers and materials
  • Supply chain management connects the activities of logistics, purchasing, and operations to ensure that they focus on goals that benefit overall performance
  • Co-ordinate with interelated department
  •  Manage existing resources


Q. What do you mean by LC?

A Letter of Credit (LC) is a document that guarantees the buyer's payment to the sellers. It is issued by a bank and ensures timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer.


Q. How can sourcing a new material?

Sourcing of new material should be with a balance between the quality of raw materials and the affordable price.


Q. What is the pre-requirement for selection of a new source of raw material?

  • Adequate stability data of raw material
  • GMP certificate of the company
  • Material safety data sheet (MSDS)
  • Trial sample


Q. Which department is interrelated with SCM?

  • R&D
  • Material management or warehouse
  • Production
  • Quality control

Q. What do you mean by negotiation?

A negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable results.


Q. What is SKU Number?

SKU number is a unique code used to identify particular line items. Where SKU means 'Stock Keeping Unit'.


Q. What are the 4 methods of communication?

  • Verbal Communication
  • Nonverbal Communication
  • Written Communication
  • Visual Communication


Few Terminology

  • FIFO= First in First Out
  • LIFO= Last in First Out
  • PR= Purchases Requisition
  • PO=Purchases Order
  • W/O=Work Order
  • SOP   = Stander operating procedure.
  • ERP    = Enterprise resources Planning.
  • MRIR  = Material Receive and Inspection Report.
  • LC      = Letter of credit.
  • SPR= Store Purchases Requisition
  • QC= Quality Certificate
  • MIR= Materials Issue Requisition 
  • SR= Store Requisition
  • SAP= System Application Process 
  • CS= Comparison Statement.
  • BOE= Bill of Entry/ exchange
  • BOM= Bill of Materials.
  • MRN= Material receive note. (MRN for raw materials, spares parts, sub assemblies, componenets etc.)
  • GRN= Goods Received Note (GRN is a voucher made against receipt of finished goods)



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