Automated Excise Declaration Management: Vivansa’s Digital Transformation at Landewyck Tobacco

When Luxembourg-based Landewyck Tobacco faced challenges with time-consuming manual excise operations, Vivansa provided specialised expertise. Our cloud-based eOUI solution transformed their Excise declaration processes from manual work to a fully automated SAP-integrated system, delivering measurable efficiencies and significant cost savings while ensuring 99.95% system availability.

The regulatory landscape for tobacco manufacturers requires meticulous management of excise declarations — a specialised field demanding both domain expertise and technical proficiency. This case study illustrates how Vivansa’s deep understanding of excise processes, combined with our technical capabilities in system integration, delivered a tailored solution for Landewyck Tobacco. The project represents a textbook example of digital transformation in a highly regulated industry, where automation must be implemented with precision to meet strict compliance requirements while improving operational efficiency. Vivansa’s approach focused on addressing both the immediate pain points and establishing a foundation for long-term process optimisation.

Context and Challenges

The high-volume production environment at Landewyck Tobacco’s Luxembourg manufacturing facility required exceptional control over their supply chain and logistics processes. The sensitive nature of tobacco products created substantial administrative overhead for their Tobacco Taxes and Excise Department to maintain regulatory compliance. Excise declarations, which are specific to controlled goods like tobacco, represent a complex domain with unique regulatory requirements. Recognising this burden, Landewyck Tobacco management initiated an internal project to automate their Excise declaration processes, moving away from time-consuming manual operations.

Despite three years of effort, Landewyck Tobacco continued to struggle with establishing stable automated data exchanges with the relevant authorities. Under mounting pressure and following recommendations from regulatory authorities, Landewyck engaged Vivansa in March 2014 to leverage our specialised expertise in Excise systems computerisation. Our mandate was clear: resolve the ongoing issues and implement a reliable automation solution for their excise declaration filing processes, which constitute the core of their regulatory compliance operations.

Automated Excise Declaration Management: Vivansa’s Digital Transformation at Landewyck Tobacco (ref. 28199)

Client: LANDEWYCK GROUP S.à.r.l

Date started: March, 2014

Date completed: December, 2016

Type of services activated:

See our portfolio of services.

Resources allocated:

About 6 FTEs, essentially with business analyst, solutions architect, and senior developer profiles.

Vivansa Mission

Upon engagement, our team of six specialists — including analysts, architects, modelers, and business experts — conducted extensive working sessions to develop a comprehensive understanding of Landewyck’s existing environment and specific requirements for excise management. These assessments revealed that our cloud-based eOUI solution would effectively address their specialised excise declaration needs.

The implementation proceeded in two strategic phases. First, after a six-month fine-tuning period during which we made several improvements to the eOUI GUI, we successfully deployed the solution in “standalone” mode for managing excise declarations. This critical milestone triggered the second phase, which focused on evolving from standalone to fully integrated operation by connecting eOUI with Landewyck’s SAP ERP system. This integration, completed in December 2016, enabled complete end-to-end automation of the excise declaration filing process, transforming a previously manual workflow into a streamlined digital operation tailored specifically to meet the complex requirements of tobacco excise management.

Throughout the project, our team provided comprehensive services including business and IT consulting, Business Process Modeling (BPM), system integration, and custom development work to ensure the solution precisely met Landewyck’s unique excise declaration requirements.

Outcomes

The implementation has delivered tangible results for Landewyck Tobacco in its excise declaration management. The company has improved its excise declaration processing capabilities while realising cost savings through higher automation levels and enhanced operational control in this specialised regulatory domain. After about 8 years in production, the solution continues to maintain high customer satisfaction.

Currently processing over 600 excise declarations monthly, the system has demonstrated reliable performance with a 99.95% availability rate. The success of this implementation has led to discussions about future enhancement plans, particularly in Master Data management for excise-related information, by further leveraging the capabilities of Vivansa’s solutions — demonstrating our commitment to continuous improvement and long-term client partnerships in specialised regulatory domains.

LANDEWYCK GROUP S.à.r.l., established in 1939 and headquartered in Luxembourg City, develops, produces, and markets tobacco products including cigarettes, smoking tobacco, cellulose-based cigarette filters, and rolling and tubing tobacco. With production plants across Germany, Luxembourg, Hungary, Belgium, and the Netherlands, the company distributes its products through retailers in Luxembourg and internationally. The group includes subsidiaries such as Tabak- und Cigarettenfabrik Heintz van Landewyck GmbH, Landewyck Tobacco S.A., and Lyfra N.V., generating annual revenue of 3.2 billion EUR (2022)

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