Why Single-Number Plans Keep Breaking

Tamar Weiser

The Illusion of Precision

Every supply chain leader knows forecasts are built, debated, refined.
A “final number” emerges, and the organization rallies around it. Production schedules are set, inventory is positioned, budgets are locked.

But reality has other plans, a promotion runs hotter than expected, shipments get delayed, the machine breaks, and the list goes on and on.
Suddenly, the carefully constructed number is wrong, probably a few hours after achieving it.
The plan doesn’t adapt - it snaps, it's not longer relevant.
Teams do what they can, firefighting replaces execution, and the credibility of planning itself takes a hit.

This isn’t about bad planners or poor tools. It’s about the flaw baked into the concept.
Single-number planning assumes the future can be foreseen and reduced to one outcome. In volatile markets, that assumption fails again and again.

Why Numbers Break

A single line across time assumes certainty - that demand or supply will neatly follow that path. But reality behaves differently.
The further you look into the future, the more possibilities open up.

  • In the short term, there may be relatively little variation: sales for next week are reasonably predictable.
  • In the medium term, the corridor widens: promotions, seasonality, or customer behaviors create spread.
  • In the long term, all yo have is wild guesses: market shifts, supplier changes, geopolitical events.
What looks like a simple forecast line is actually one option out of many, thousands of possibilities - an ocean of possible outcomes.
When planners pick one number from that curve, they commit to a fiction. And when reality veers outside that line, the plan collapses.

The Cost of Brittle Planning

This brittle approach has real costs:

  • Lost service: stockouts when demand surprises to the upside.
  • Excess inventory: piles of unsold goods when demand underdelivers
  • Loss of revenue: eventually with unavailability our customers buy from someone else..
  • Expediting costs: rushing material or production when the plan busts.

Most organizations respond by tightening their process -more frequent re-forecasts, more detailed models, more meetings (and more opinions).
But this is treating the symptom, not the cause. The underlying flaw remains: betting on one number.

Planning for a range: A key to value

RBP takes uncertainty as the starting point. Instead of betting on one number, it builds corridors of plausible outcomes and ties each to clear response policies.

  • Defining the ranges. Using history, variability, and business context, RBP sets upper and lower bounds. For example, next quarter’s demand may probabaly be between 70,000 and 105,000 units.
  • Setting threshold and policy. Actions are tied to signals. If demand approaches the upper limit, capacity is added. If it trends toward the lower limit, production scales back.
  • Embedding agility. Instead of firefighting when the plan busts, teams act within agreed guardrails, and is align to response fast and within the relevant timeline to take advantage of the disruption .

Cultural Shift: From Accuracy to Preparedness

This is a mindset shift.
For years, planners have been judged by forecast accuracy.
Did we hit the number?
That culture trains people to obsess over precision in a single outcome.

Let change the questions we ask:

  • Did we stay within the corridor?
  • Did we act effectively as conditions shifted?
  • Did the plan protect both service and cost despite volatility?

This mindset frees teams to focus on decision quality instead of defending a number.
It makes planning less about prediction and more about preparation.

Why Now?

Volatility isn’t going away. If anything, it’s accelerating, hard geopolitical environment, climate change, aging machine and a new generation of buyers.

The cost of brittle, single-number planning is compounding. Leaders can no longer afford to treat disruptions as exceptions, doing so will have devastating implications on profit.

Range-Based Planning meets this reality head-on.
By designing plans that flex across corridors and being able to react fast, organizations stop being surprised by the inevitable.
They shift from firefighting to forward-looking, from fragile to antifragile.

The benefits are huge

  • Faster decisions
  • Lower firefighting
  • Healthier margins
  • More resilient service

In other words: fewer wasted hours, fewer stockouts, fewer dollars lost to volatility.

Closing Thought

The future won’t fit into a single number. Let's stop chasing accuracy, it's an illusion.

Range-Based Planning isn’t about being perfectly right. It’s about being prepared for the range of what’s plausible - and thriving within it.

Hexight provides the platform for ranged based planning, reach out to see a new, easy and fast approach to face reality and thrive.

You need a supply chain solution that actually works.
We built it.

Back
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.