For some SMSM projects, additional steps must be taken to formulate the appropriate budget.
When the client begins to assemble the budget, it is helpful to prepare a budget worksheet that includes the following:
A typical SCM project budget will show the various types of expenditure and when they will be incurred, which subsequently allows the client to track costs against the plan.
Most commonly, the client will prepare an SCM project budget in a spreadsheet format; an example is illustrated in Figure 2.2 below.
A budget worksheet typically includes a list of all personnel and nonpersonnel expenses related to the operation of the project. The client should anticipate costs that may be incurred once the project begins, as well as any ongoing expenses for items that will be allocated to the project. Nonpersonnel costs are considered indirect costs, which include items such as travel, equipment, office supplies, and postage.
The list of budget items and applicable calculations should be summarized on a worksheet. These worksheets can be essential to track whether the project is on budget.
In addition, a tactical opportunity form must be completed to request funding.
