What is meant by “rolling planning”?
Rolling planning refers to a planning approach in which the planning horizon is continuously updated and extended. This means that the existing plan is reviewed and adjusted at regular intervals—such as monthly or quarterly—and a new planning period is added.
For example, a freight forwarder might use rolling planning to remain flexible when organizing truck routes and loading capacities for the next three months. Instead of relying on a one-time, fixed plan, the plan is reviewed every month and adapted to changing conditions.
In January, the company creates a plan for February, March, and April. At the end of February, planning is updated for March, April, and May. Let’s say that during February, a customer requests more cargo space. Rather than sticking with the original plan, the forwarder adds more trucks for March and recalculates optimized routes. This ensures the planning stays up to date and responsive. At the end of March, the plan is extended again to cover April, May, and June.
With this approach, the freight company gains several advantages: it can quickly respond to fluctuating demand, seasonal trends, and changes in road conditions or customer requirements.
Key features of rolling planning:
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Improved forecasting: New developments are continuously incorporated
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Ongoing updates: Planning is dynamically adjusted
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Flexible planning horizons: Older periods are replaced with updated plans
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Widely applicable: Common in production, logistics, and corporate strategy
FAQ – Rolling Planning
What is rolling planning?
Rolling planning is a dynamic planning method where the planning horizon is continuously updated and extended. This allows for ongoing adjustments based on current developments, enabling greater flexibility and responsiveness.
Where is rolling planning used?
It is commonly applied in logistics, supply chain management, production, and finance. Wherever conditions can change rapidly, rolling planning provides a valuable advantage.
What is the difference between static and rolling planning?
Static planning sets a fixed time frame in advance without later adjustments. Rolling planning, on the other hand, is regularly updated (e.g., monthly or quarterly) and shifted forward in time.
What are the advantages of rolling planning?
- Greater flexibility in responding to changes
- Early detection of deviations
- Improved forecasting accuracy
- Continuous adaptation to market and demand changes
What are the challenges of rolling planning?
- Increased planning effort
- Requires high data quality and transparency
- Needs powerful IT systems and tools
How often should rolling planning be updated?
That depends on the industry and business model. In logistics, a monthly or quarterly update cycle is common to ensure quick reactions to demand fluctuations.
What role does software play in rolling planning?
Modern planning tools and ERP systems automate data analysis, support forecasting, and allow easy updates of planning data – a critical success factor for rolling planning.
Is rolling planning suitable for smaller companies?
Yes, especially SMEs benefit from increased agility and the ability to plan efficiently with limited resources. A scalable solution that fits the company’s needs is key.
What kind of data is required for effective rolling planning?
Reliable sales forecasts, current inventory levels, lead times, capacities, and market information are essential to support sound decision-making.
How does rolling planning help in the supply chain?
It creates transparency across the entire supply chain, enables better coordination among partners, and reduces the risk of shortages or overstock.
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