What is Supply Chain Investment?

A supply chain is the chain of different sources from where raw material supply can be obtained for a manufacturing unit. Most businesses invest in supply chains judiciously in order to reduce costs and increase profits. If a business cannot predict about the customer demands successfully, it will end up in excess inventory or stocks out. If we take a conservative view about the investments in supply chain, it may reduce the business opportunities.


How to Make Best Business Case for Supply Chain Investments?

  • Clear strategic objectives: You should ensure to clarify the strategic objectives of your company before the senior leadership. This will help them to decide from where the supplies have to be obtained.
  • Supporting these objectives: You need to support your strategic objectives. This will help to classify strategic customers for your products. The business case so formed will focus on the supplies needed for that group of strategic customers.
  • Analyse to form a plan: Your business case will be appreciated if it tends to reduce the inventory and improve employee productivity. But your business case should be supported by thorough analysis and suitable evidences to prove your point.
  • Competing projects: There may be other projects running besides your business case in the company. Your business case will be considered in a better tone if it has a plan to work synergistically with other running projects. It should not double the investment rather share the funds already allocated.
  • Understanding stake-holders & their buy-ins: Before presenting your business case, you should have thoroughly analyzed your stake-holders and their buy-ins. This will help you to present your viewpoints strongly in order to convince management to invest in the supply chain.
  • Identifying your sponsors: A sponsor in this case will help you to put forward your case in a more effective way. The sponsor should have personal interest in the business case in order to achieve organizational goals.
  • Be confident: You must realize that you are the owner of this business case in spite of the fact that your management has hired external consultants to help you build your business case. The consultant will not be signing the business case at the end of the day. It will be you and your team who takes responsibility to execute the business case.
  • Measure the value: The value of the business case is in its successful execution to achieve the objectives it has laid down. Most business cases fail as they are more hypothetical rather than being practical. The stakeholders are able to understand if you have measured its value.

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