SUCCESS ENGINEERING
Benefit/Cost analysis
You have already identified your top priority supply chain risks and have read a compilation of tools and best practices you can adopt. However, there is not an economic evaluation of the benefit and cost each tool might mean for your SME. A benefit/cost analysis is the last step.
A benefit/cost analysis is a method to compare the expected financial benefits of a solution with the budgeted costs in order to confirm the business benefit of proceeding. It is also a technique that allows the comparison between the final alternatives expressed in cash.
A summary of some of the benefits and cost which might suppose implementing some of the proposed mitigation actions
Notional example of a Benefit/Cost analysis
If there is more than one tool to be evaluated, you could use a heat map in order to have a visual representation of their Benefit/Cost ratio
A heat map can help to visualise which alternatives are more suitable for your firm