Plan and Collaborate in a Multi-Partners Environment – A Landewyck Story

Landewyck is an independent Luxembourg company specializing in cigarette production. Their production facilities in Luxembourg producing 45 to 50 million cigarettes per day.

Jürgen Siegle joined Landewyck Group approximately 12 years ago. He is responsible for Supply Chain Planning, specifically the Demand, Production and Distribution Planning for five different production sites in Europe.

Landewyck Group’s Partners Network

The main challenge Landewyck Group faces is convincing 40 partners across 40 different markets worldwide to work with them by providing the data needed to execute an entire planification procedure.

The Keys to a Successful Partnership

Landewyck Group believe visiting all their partners and helping them implement their Demand & Supply Chain Planning (DSCP) solution was the key to their success. They want their partners to be actively involved in the forecasting and planning process. Therefore, they work with their partners on a regular basis to ensure the right data and forecasts are entered in the DSCP solution. Landewyck Group believes data entry is the most important step of the planning process. If you don’t have the right figures in the system, then you have a problem and your entire planning process can be corrupt. Jürgen refers to this as, “Garbage in, garbage out!”. Therefore, the group believes that being present during their partners implementation of DSCP was the most important part of the game.

The main benefit of a partner-wide DSCP solution was a large decrease in their stock. For example, in different markets Landewyck Group had approximately 8 or 9 months of stock and within a few months of using the DSCP solution, they were able to decrease their stock level to one or one and a half months. This was a big step forward for them as they were able to save money and produce the right inventory according to the market’s needs; no more overproduction.

The next steps for Landewyck Group include: implementing the new version of their Track & Trace solution to all of their production sites in Europe, upgrading their DSCP system, and building a new, modern factory in the northern part of Luxembourg in 2019.