The horizon is now very short: why long-term plans are no longer needed

Approaches when enterprises made plans with a horizon of a year and a half have lost their relevance today. Those who have not yet reviewed their work need to urgently do so. Mikhail Ivanov (AxTeam) said,

Fundamental changes in the economy of both the whole world and our country are leading to a change in priorities in such an important area of ​​business as planning.

Therefore, more and more organizations are moving towards short-term planning, which allows them to take into account market changes within a month or even several weeks.

An example is the situation in ferrous and non-ferrous metallurgy, as well as in oil production and oil refining.

Why long-term plans are no longer relevant

Until now, planning provides the enterprise with the necessary information in three key areas for 12-18 months in advance, updating them every month:

the required range of products and production volumes for each of them, the sales market for products, the possibilities of logistics in the areas of sale and the resources necessary for it (supply chains, the number of wagons, containers, the possibility of freight transport, etc.).

However, in the last two years, this planning practice has lost its relevance.