Nonstrategic projects

In Figure 5.4 we described the types of supply chain projects an organization might undertake. The six types included strategic and nonstrategic projects at the function (or department), the business unit, and the supply chain (multicompany) levels. 

If discussing an autonomous business unit, this would be the president or general manager and his or her direct reports. A department-level project — whether strategic or nonstrategic — might fall under a department head with as-needed intervention by peers or the business unit senior manager. 

Nonstrategic parity Projects that implement common industry practices "Stay-in-the game" projects Responds to a deficiency, or Incorporates common new technology expected of industry participants... 

Nonstrategic financial Optional projects that reduce cost or increase revenues Financial Discounted Cash Flow methods (ROI, NPV)... 

Our discussion of Task 1 describes how one might go about designing a strategy that defines what supply chain projects you should pursue. The discussions of the remaining foiu tasks more or less assume that one has a charter that requires knowledge in each particular area. And that charter arises from the need to implement a supply chain-related project. This project may be either strategic or nonstrategic and have a scope of any of the three types — fxmctional, business xmit, or supply chain. 

This is often unfortunate. The decision-maker should formally consider strategic contributions from any cost-reduction project. This judgment should determine whether the project is "above the line" in our model shown as Figure 24.1 — that is, strategic — or below the line — nonstrategic. 

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