Körber promotes digital transparency and sustainability in its supply chains

Julian Poppen walks through a Chinese supplier’s factory floor, inspecting everything closely. The Deputy Head of Global Supply Chain Quality Management in the Körber Business Area Technologies is traveling the world again. This time, his mission is taking him through Asia. Over recent months, he has already visited Körber suppliers in Mexico, the US, and Eastern Europe. His remit: ensure that the company’s global partners comply with Körber’s high standards in sustainability and human rights.

As he crosses the production area, the 34-year-old Poppen makes notes on his tablet. He checks work conditions, safety measures, and environmental standards. His trained eye doesn’t miss a thing – from the employees’ ages through to correct disposal of chemicals.

Pioneers in sustainability

Such audits are more than a mere formality for Poppen and his colleagues from the Supply Chain Quality Management team. They form a key integral part of the Körber strategy for sustainable, responsible supply chains in a globalized world. With this strategy, the technology group is establishing itself as a trailblazer in sustainability and transparency in the supply chains. 

In doing so, the Group faces a complex challenge in achieving the goal of sustainable sourcing: Körber works with more than 12,000 suppliers in 68 countries worldwide, purchasing around 50 percent of its business volume from them. This also means that a significant amount of CO₂e emissions is generated in the upstream supply chains. As a result, collecting emissions-related primary data now takes on a key role alongside work safety, environmental protection, social standards, compliance, and observance of human rights when selecting and evaluating suppliers.

Holistic approach to supply chain responsibility

In principle, Körber follows a multi-step approach in implementing sustainable supply chains: First of all, the company incorporates extensive sustainability criteria in selecting and evaluating suppliers. Such social, ecological, and company-related criteria form part of regular evaluations of existing suppliers and are decisive when selecting new ones. In addition to usual factors such as quality and price, aspects such as environmental protection, social standards, compliance, observance of human rights, and emissions reduction also play a key role.

Another key component is regular audits on suppliers’ premises. These on-site checks allow the company to verify compliance with the agreed standards directly and identify potential areas for improvement. Digital transparency and evaluation of relevant data are also crucial. Körber uses the globally recognized digital platform IntegrityNext to provide efficient management and monitoring of its supply chains.

It carefully evaluates the data collected from audits and via the platform, using the information to identify risks in the supply chains and develop targeted measures for improvements. “In doing so, we place great value on open, ongoing communication with our suppliers,” states Carolin Schwägler, Senior Manager Supply Chain Sustainability at Körber. “This dialog includes a regular exchange of information on sustainability topics, the feedback on audit results and improvement potentials, and assistance in implementing sustainability measures.

Digital networking with suppliers

The IntegrityNext platform serves as a linchpin in this information exchange. It helps Körber to advance digital networking with its suppliers and elevates working relationships to a new level. “We pursue two goals in this regard: First of all, we conduct a comprehensive risk analysis. Secondly, we broaden our working relationship with our suppliers,” states Schwägler. “A globally recognized digital platform is essential in this context and brings us and our suppliers numerous advantages.” 

Suppliers benefit from significantly simplified compliance processes: Instead of having to complete numerous questionnaires from different customers, they can provide their sustainability information centrally on the platform offered by Körber. They can then also distribute this information to as many customers as they like in different languages without increasing their administrative workload. Moreover, the platform helps suppliers gain visibility with prospective customers who prioritize sustainable sourcing. Suppliers with high sustainability ratings can differentiate themselves from competitors in tender processes and consolidate their market position. These advantages are also evident in suppliers’ positive response to the platform. “Last year, we were even invited to give a presentation on our approach at a supplier’s customer event,” says Schwägler. 
“That shows that our approach not only offers true added value for us but also for our partners.”

Challenging goals, great progress

In 2024, Körber was already able to cover more than 91 percent of its purchasing volume via the IntegrityNext platform. “This has exceeded our expectations and shows how seriously our suppliers are taking sustainability,” affirms a pleased Schwägler. “As the platform allows us to identify potential risks at an early stage, we’re in a position to develop improvement road maps together with our suppliers. Last year alone, we initiated more than 250 development plans with suppliers, of which more than a third have already been successfully completed.”

Körber also made significant advances with regard to sustainability within its supply chains in 2024. One thing the company prioritizes is recording product carbon footprints (PCFs). 

Although this represents a challenge, Körber sees great potential in it. “Our goal is to receive half of our data as primary data directly from suppliers by 2030,” explains Schwägler. “Our efforts in this direction are already having an impact: In 2024, we were able to significantly increase our primary data quota in the PCF area compared to the previous year. The PCF already plays a decisive role in our purchasing decisions. Sustainability criteria are now included in our supplier selection just as much as price. This reinforces our commitment to sustainable procurement and shows that we take the environmental impact of our products just as seriously as economic aspects.“

Continued focus on emissions reduction

Körber prioritizes reducing CO₂e emissions in the supply chain for all its activities. These emissions account for a large share of the Group’s CO₂e emissions, as well as the increase in the share of primary data for product carbon footprints (PCF) from suppliers. To achieve its ambitious goals regarding primary data for 2030 and 2050, Körber plans to continue its efforts to increase the proportion of primary data for PCF from suppliers in 2025, which will also improve the greenhouse gas inventory calculation. Körber is also seeking to ensure a further reduction in indirect emissions from purchased goods and services thanks to a closer working relationship with its suppliers. “Our goals highlight our commitment to reducing our ecological footprint throughout the entire value chain. We’ll also continue to expand collaboration with suppliers and increase transparency in the supply chain on a continuous basis,” affirms Schwägler. “We see ourselves as trailblazers in this field and wish to use this role to initiate positive changes in the entire sector.”