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.?