World leader in specialty fibers made from renewable materials creates a digital supply chain optimizing profits and sustainability
SCOTTSDALE, Ariz.–(BUSINESS WIRE)–The Lenzing Group is no stranger to sustainability as they’ve built their business around producing high-quality fibers from sustainable materials like recycled wood and cellulose fibers. So when it embarked on its digital supply chain transformation, sustainability – along with profitability and end-to-end supply and demand visibility – were paramount. That’s why they chose to work with JDA Software, Inc., to deploy JDA® Sales & Operations Planning across production operations, as well as sales, marketing and finance.
Based in Austria, the Lenzing Group supplies high-quality specialty fibers to the global fashion industry. Its botanic cellulose fibers, which support the production of textile and nonwoven products, are known for their innovative properties, including a reduced environmental impact when compared to traditional materials.
“The fashion industry is the second largest polluter on a worldwide basis,” said Robert van de Kerkhof, chief commercial officer for Lenzing. “Not only do the production processes generate waste, but the end products are typically not biodegradable and are rarely recycled. Lenzing’s goal is to leverage innovation in both our products and processes to minimize our environmental impact, while still meeting the dynamic needs of our customers and the end consumer. So it was very important that our supply chain strategy with JDA supported sustainability as well.”
Lenzing’s goal was to create an end-to-end planning process that precisely matches demand and supply, minimizing inefficiencies and maximizing profitability. JDA Sales & Operations Planning addresses these needs by taking a cross-functional approach to integrated business planning that unites all the moving parts across the supply chain with a shared focus to meet demand across markets, with an eye on both immediate and long-term strategic goals. Lenzing has since replaced its existing tools such as Excel spreadsheets, and manually intensive processes, with JDA to manage their complex business model. Cross-functional teams were 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 helped Lenzing understand the needs of customers and end consumers, creating a more accurate forecast and a much more agile and responsive supply chain. With a new level of decision support as well as cross-functional alignment, Lenzing has been able to successfully transform its S&OP process, fueling its growth and leadership position while also driving operational efficiencies.
“We got our cloud-based JDA deployment up and running quickly which helped us rapidly realize a return on investment. For example, 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. And, most importantly, as forecasting accuracy improved, we minimized waste and the entire supply chain became leaner,” said van de Kerkhof.
“Lenzing is a best-in-class example of a company that truly understands its customers but also the importance of reducing its environmental footprint and making a difference,” said Johan Reventberg, president, EMEA, JDA. “Keeping sustainability top of mind with its vision for its supply chain transformation was critical, and we are proud to have supported Lenzing on their journey.”
Based on their successful implementation of JDA Sales & Operations Planning, Lenzing sees the potential to transform not only their own business, but the entire fashion industry, via digital technologies like JDA’s. Their goal is to expand connectivity and collaboration capabilities outside of their business by forming closer relationships with their supply chain partners leveraging JDA solutions. Ultimately, Lenzing envisions connecting the entire value chain and truly minimize their environment impact.
- Read more about Lenzing’s success with JDA in this case study
- Hear Robert van de Kerkhof talk about Lenzing’s supply chain strategy in this video
- Learn more about JDA Sales & Operations Planning solutions
About JDA Software, Inc.
JDA Software offers the leading supply chain management (SCM) platform powered by artificial intelligence (AI) and machine learning (ML). JDA’s leading cloud solutions manage supply chains from end-to-end, spanning supply chain and retail planning, execution and delivery. Using JDA’s comprehensive SCM platform and its broad partner ecosystem, customers can better predict and shape demand, transform product delivery, fulfill more intelligently, grow revenue and profits, and deliver superior customer experiences. JDA’s proven solutions power an Autonomous Supply ChainTM for 4,000 of the world’s leading companies including 75 of the top 100 retailers, 77 of the top 100 consumer goods companies, and 8 of the top 10 global 3PLs. Running JDA, you can plan to deliver. www.jda.com
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