Austrian cellulosic fibre producer Lenzing Group has employed sales and operations planning software across its business to help create a more agile and responsive supply chain that minimises waste and inefficiencies.

The company’s goal was to create an end-to-end planning process that precisely matches demand and supply, and maximises profitability. In addition, it “was very important that our supply chain strategy supported sustainability as well,” explains chief commercial officer Robert van de Kerkhof. 

The company is deploying the cloud-cased JDA Sales & Operations Planning suite across its production operations, as well as sales, marketing and finance. The software takes a cross-functional approach to integrated business planning, uniting the moving parts across the supply chain with a focus on meeting demand across markets and aligning with both immediate and long-term strategic goals. 

The implementation has also enabled the firm to replace tools such as Excel spreadsheets and manually intensive processes to manage its complex business model. And cross-functional teams have been brought together for the first time in an agile, collaborative process, working with a single set of data that is shared across the business.

This new level of transparency and visibility has helped Lenzing understand the needs of customers and end consumers, it says, creating a more accurate forecast and a much more agile and responsive supply chain while also driving operational efficiencies.

“We reduced planning and decision-making time by 50%, leveraging JDA’s what-if tactical planning capabilities and improved profitability as critical resources were allocated to the most financially promising markets and product applications,” van de Kerkhof adds. “And, most importantly, as forecasting accuracy improved, we minimised waste and the entire supply chain became leaner.”

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