Funding Request for a Business Case

# An app to solve the supply chain delays

__Developed by Jack Welch, Supply Analyst__

The supply chain department should build a climate tracking app by July this year so that we can save over $2 million this year, while avoiding losses incurred due to weather conditions.

## Problem
Our supply chain has been disrupted by bad weather patterns in our supplier’s geography leading to a yearly loss of $4 million dollars, despite cautions to suppliers.
Every year, we are losing at least $4 million due to bad weather, if it is not addressed by Q2 this year, we might see a 30% increase in losses. 
Despite cautioning the suppliers, our supply chain team is not able to bring down the losses to acceptable levels and this problem will balloon if not addressed this year. 

## Approach
- Build a climate forecasting app that predicts circumstances with 80% accuracy. 
- In cases, where there is over 80% likelihood, we put a contingency supply plan and request stock cancellation/postponement from the supplier. 
- We instead get postponed stock after the weather conditions improve, thereby reducing our losses to less than $1 million.
- Get our supply analysis team to gain more insight by studying past 8 years of meteorological data for better forecasting. 

## Benefits

### Net Wastage
- __2023:__ 4000 tonnes
- __2024:__ 5000 tonnes (projected)
- __2025:__ 1000 tonnes (projected)

### Net losses
- __2023:__ $ 4,000,000
- __2024:__ $ 5,000,000 (projected)
- __2025:__ $ 1,000,000 (projected)

## Recommendation
The total cost of the project will cost $250,000 in resources and manpower and has a 12X potential upside within 1 year of implementation.