Posted on by Judy

Supply chain manager for Company A wants to make technology improvements up and down one of three major supply chains for the company. The supply change manager has presented the cost proposal for this technology improvement at $2.34M. The amount saved by this project will be 5% of the company’s sales. Total sales last year for the company was $109.7M, however, this is a high-risk project. As the CEO of the company, what questions might you ask the supply change manager regarding the proposed update?​ Is there a business case for this project? If yes, please explain how you might arrive at a business case. If no, explain.​

Below are some of the important points for the supply chain manager to be answered:
Any significant risks in implementation of the project like any loss of business or any other disruptions during the implementation of project.
Expected duration of the project and internal resources required to implement such changes.
Change management steps to be taken and any loss of jobs due to the technological advancement.
Any increase in maintenance cost due to system upgrade.
Yes, there is a business case for the organization for the project.
Economically: It is giving the organization yearly savings of 5% of $109.7M = $5.485M. So the initial cost would be covered in less than 1 year itself.
Technological: Advancement in technology can result in better quality.
 
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