Answered that I currently engaged in some work from home scenarios and was prepared to do so if necessary in the future. I was informed that was not a possibility and that we were expected to be either in the office or on the customers site.
They're kind of looking for you to describe your thought experiences and how you're approaching problems. I'd advise you to offer two examples, one for an individual assignment, and then a second for a group project or effort. They're interested in your role on teams that you're on, but also how you handle problems on your own.
The question is a bit vague. Does the problem stem from internal or external conflict? Perhaps, it is a combination of both. Does the problem involve supply chain management, profitability, lack of financial resources, quality or on time delivery? The first step is to assemble the internal team for a thorough SWOT analysis followed by a one-on-one meeting with all team members involved with the problem. If the problem involves external conflicts, a review with the supplier’s top management is in order including any team member that has direct communication with the supplier. If the problem involves cost of goods or internal financial incentives, one must follow the money trail and delve into motives driven by both team members and supplier executives. The root of the problem should be exposed if all of these steps are implemented and fully exhausted.