A rolling forecast is an add/drop process for predicting the future over a specific time period. Rolling forecasts are often used in project management, supply chain management and financial planning. Rolling forecasts are gaining popularity and often replace an organization’s annual budget.
Because business conditions change rapidly, rolling forecasts allow organizations to quickly adapt to changing conditions. Rolling forecasts let business executives to identify opportunities and risks that contribute to or impede success.
To create an efficient rolling forecast process, organizations must identify the key variables that drive business and timing of their impact on operations. Incorporating a rolling forecast process involves strategic planning and execution and should not be approached haphazardly. It must be phased into strategic areas of the organization first and then dispersed more broadly as the value of improved insight and decision-making is realized.
Rolling forecasts provide useful information that connects all parts of the business and provides executives a 360 degree picture of its current position and the short-term outlook.