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The Lenzing Group Revitalizes Supply Chain Processes with JDA


Leading Austrian fiber production company sees 50 percent reduction in S&OP planning process with JDA implementation

Now more than ever, having an effective, agile and responsive supply chain is a must, as the dynamic needs of the end customer are constantly evolving. An effective sales & operations planning (S&OP) process is integral to the supply chain strategy, enabling companies to realize revenue, margin and operation performance gains through improved decision support and cross-functional alignment. With this in mind, The Lenzing Group chose to deploy JDA® Sales & Operations Planning from JDA Software, Inc. to increase its supply chain process maturity levels, fueling its growth and leadership position, while driving operational efficiencies.

The Lenzing Group, based in Austria, supplies the global textile and nonwovens industry with high-quality, botanic cellulose fiber. Its portfolio ranges from dissolving pulp to standard and specialty cellulose fibers. Lenzing has production sites in all major markets as well as a worldwide network of sales and marketing offices. The company’s success is based on consistent customer orientation combined with innovation, technology and quality leadership. Lenzing is committed to the principles of sustainable management with very high environmental standards and can underscore this commitment with numerous international sustainability certifications for its business processes as the most sustainable company in the sector.

Lenzing has a group strategy program called sCORE TEN where priorities are strengthening its core business, intensifying customer-centricity along the value chain, while increasing the share of specialty fibers to 50 percent of total revenue by 2020. Lenzing expects this to fuel its technological leadership for man-made cellulose fibers and opening new attractive business areas.

»Given our vision to get to the next level of corporate growth, we needed to overhaul our S&OP processes to completely eliminate manual work while evolving towards a fully integrated business planning process. JDA was the right fit with its end-to-end supply chain planning solution and services to help us unite our supply chain globally,« said Parsan Chand, vice president, global supply chain, Lenzing AG. »Throughout our deployment journey, the JDA team came at this project with a customer-first attitude and had the depth of understanding of our project goals, setting us up for success.«

With its focus on a consistent customer experience, Lenzing chose JDA® Sales & Operations Planning, part of JDA® Manufacturing Planning to help it realize revenue margin and operating performance gains through improved decision support and cross-functional alignment. This led to improved sales forecast accuracy, transparency and business alignment, as well as improved decision-making and accountability.

Lenzing deployed JDA Sales & Operations Planning earlier this year to achieve:

  • Forecasting accuracy given its prior manual spreadsheet-based process

  • Regional planner competency for improved demand and budget planning

  • The first S&OP planning process as the key input for global 2018 budget planning

  • Regional consensus to allocation, inventory policy and key performance indicators (KPIs)

  • Ability to model its complex supply chain structure

Lenzing leveraged JDA’s end-to-end services support including JDA Consulting, JDA Strategic Services and JDA Cloud for high level process design, deployment and cloud enablement.

Since going live with JDA Sales & Operations Planning, Lenzing is already seeing the following benefits:

  • Reduced planning and decision-making time by 50 percent with what-if tactical planning capabilities

  • Increased planning transparency through eliminating manual spreadsheet process

  • Profit optimization with the ability to better allocate critical resources to the most profitable markets

  • Reengineered S&OP process with cross-functional teams, closing gaps inter-departmentally

»Lenzing is a prime best practice example of a company that realizes the importance of taking a cross-functional approach to integrated business planning that unites the supply chain with a shared focus of meeting demand across markets, with an eye on both immediate and long-term strategic goals,« said Johan Reventberg, president, EMEA, JDA. »An effective S&OP process has already helped Lenzing support processes and associated scenario planning across demand and supply, demand-supply balancing, and financial review, and will continue to roll out its deployment globally to improve overall business performance, driving corporate growth.«

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