HENSOLDT
Embeds Sustainability Risks into Supply Chain Management

With IntegrityNext, HENSOLDT incorporates robust sustainability data into a scalable, digital risk management framework – achieving high supplier and spend coverage, measurable efficiency gains, and seamless integration into operational processes.

 

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Industry Defense and security technology

Core business areas Sensor solutions, electronic and information systems, cybersecurity

Annual revenue €2.2 billion (2024)

Employees Approximately 9,000 (2024)

Headquarters Taufkirchen near Munich, Germany

>99%

of relevant procurement spend covered by IntegrityNext analysis

>85%

supplier response rate for self-assessments

200

employees leverage IntegrityNext data for targeted risk management

12 months

ROI payback period with IntegrityNext, including internal database development costs

For us, it was crucial to integrate sustainability risks into our group-wide supply chain management framework rather than viewing them in isolation. IntegrityNext allows us to continuously monitor these risks and systematically embed reliable data into our existing processes.

Friederike Tetzlaff
Supplier Performance & Risk Manager, HENSOLDT

How HENSOLDT Uses Our Platform

  • Main applications
    • Supply chain due diligence for systematic risk monitoring
    • IT integration via extended API to automatically integrate risk data into existing systems and processes
    • Distribution of the supplier code of conduct
  • Suppliers screened Several thousand
  • Supplier response rate for self-assessments >85%

HENSOLDT Goals We Support

Digitalizing Due Diligence

Automate and standardize supplier qualification to enhance transparency and reduce manual effort.

Risk-Based Supply Chain Monitoring

Ensure continuous supplier monitoring and integrate sustainability risks into a holistic risk management approach.

Integration into Internal Systems

Embed IntegrityNext data into the group-wide IT landscape to enable centralized documentation and improve operational decision-making.

Regulatory Compliance

Adhere to current and future regulatory requirements, including the German Supply Chain Act (LkSG).

Targeted Supplier Engagement

Enable scalable communication, streamlined processes, and continuous supplier development.

Business Context

HENSOLDT is a leading company in the European defense industry with a global footprint. Headquartered in Taufkirchen near Munich, Germany, the company develops advanced sensor solutions for defense and security applications. HENSOLDT collaborates with numerous suppliers – primarily in Europe – and is subject to high transparency standards and extensive risk management requirements across its supply chain.

Prior to partnering with IntegrityNext, HENSOLDT’s due diligence activities were largely characterized by manual processes, siloed workflows, and decentralized documentation.

As part of its efforts to build an integrated risk management framework, HENSOLDT sought a solution that would support the following priorities:

  • Digitalization and harmonization of supplier disclosures and assessments
  • Integration into the existing IT landscape to enable centralized access to supplier and risk data
  • Increased data-driven transparency on supply chain risks across functions and business units
  • Systematic consideration of sustainability and risk factors in procurement, including continuous monitoring of critical news
  • Standardized, up-to-date questionnaires aligned with international standards and regulatory requirements
  • A user-friendly platform offering free supplier access, reuse of existing information, and comprehensive support services
  • Dedicated project support with regular expert exchange

Based on these requirements, HENSOLDT selected the IntegrityNext platform.

Project Description

Key Stakeholders

At HENSOLDT, the project was led by several business functions in close collaboration with the internal IT team. Procurement oversees company-wide supplier performance evaluation and risk management within procurement processes, supported by the global sustainability department.

IT was responsible for the technical integration into the existing system landscape and for developing an internal SQL database. This database combines sustainability data collected via IntegrityNext with additional risk indicators, such as financial metrics. IntegrityNext supported the project with subject matter expertise, methodological guidance, and technical assistance.

Representatives from various HENSOLDT business units have direct access to the IntegrityNext platform. In total, around 200 employees leverage the data via the internal SQL database after being evaluated using HENSOLDT’s proprietary assessment methodology.

Implementation

The roll-out of the IntegrityNext platform followed a phased approach based on HENSOLDT’s internal supplier segmentation. Today, more than 99% of the relevant procurement spend is continuously monitored. At the start of the project, approximately 25% of suppliers already had pre-existing sustainability profiles on IntegrityNext, enabling early access to meaningful data. Comprehensive, reliable results were subsequently gathered within just a few weeks.

HENSOLDT primarily uses the platform for risk analysis, including automated country and industry risk evaluations, supplier self-assessments, and ongoing monitoring of critical supplier news.

Through IntegrityNext, HENSOLDT collects supplier information across 16 topic areas. These include environmental protection, human and labor rights, and occupational health and safety, alongside additional risk categories such as quality management, financial indicators, cybersecurity, data protection, and business continuity – depending on the supplier profile.

This broad thematic scope underscores HENSOLDT’s holistic approach to risk management. As part of the supplier qualification process, the Code of Conduct is also communicated via the IntegrityNext platform.

IT Integration

A key focus of the project was the technical integration of the IntegrityNext platform via an extended API to ensure that risk information is readily available across the organization and fully embedded into operational processes.
 
The objectives of the integration were to:
 
  • Automate supplier monitoring by consolidating relevant processes within a central application across the entire supplier lifecycle
  • Establish a single source of truth that brings together all relevant supplier and risk information and makes it accessible across business functions
  • Enable advanced analytics, scoring models, and company-specific risk assessments based on structured, actionable data
To achieve this, HENSOLDT developed its own SQL database as an analytical layer connected to the IntegrityNext platform. Within this environment, IntegrityNext data is combined with additional risk insights, including financial metrics. Using a proprietary evaluation methodology, supplier-level risk scores are calculated and subsequently transferred to SAP Ariba Supplier Lifecycle & Risk Management. IntegrityNext provided a test environment that allowed HENSOLDT to validate the technical integration and various use cases at an early stage.
 
Today, around 200 users access risk assessments and supplier documents (e.g. ISO certifications) via the internal database. In addition to Procurement, business functions such as Supplier Quality, Sustainability, Cybersecurity, and Business Continuity work with the data. Based on the risk assessments and automated alerts, teams initiate targeted measures. They can review supplier-level results and directly request self-assessments where necessary.  

 

Key Outcomes

Enhanced Supply Chain Transparency

HENSOLDT monitors thousands of suppliers via IntegrityNext. Supplier self-assessments address 16 risk areas, including strategic topics such as business continuity and cybersecurity. More than 99% of the relevant procurement spend is covered, with a response rate exceeding 85% – providing comprehensive insights across the supply chain.

Optimized Due Diligence Process

Scalable risk data collection, frequently updated questionnaires, as well as targeted supplier support and development have significantly reduced manual effort. Processes have been harmonized and centralized, data quality has improved, and supplier qualification has been further streamlined.

Group-Wide IT Integration and Risk Management

Integration of the IntegrityNext platform into HENSOLDT’s system landscape enables automated, continuous monitoring of supplier performance and risk. Around 200 employees across multiple business functions use the data to support informed operational decisions and holistic risk management – without the need to switch systems.

Demonstrated ROI with IntegrityNext

By implementing a highly automated, digital due diligence process, HENSOLDT has achieved measurable efficiency gains. The investment in the IntegrityNext platform reached break-even within 12 months, including internal IT costs for developing the SQL database interface.

Effective Regulatory Compliance

By embedding sustainability-based risk management and due diligence processes into operational workflows, HENSOLDT complies with the German Supply Chain Act (LkSG) and is well-equipped to meet future regulatory requirements.

Future Outlook

With IntegrityNext, HENSOLDT has implemented a holistic approach that effectively links supply chain due diligence, regulatory compliance, and IT integration. Building on this foundation, the company will continue to strengthen and further develop its risk management processes.

Future priorities include:

Deepening supply chain transparency

While the current framework primarily covers direct suppliers (tier 1), HENSOLDT aims to expand visibility into deeper tiers of the supply chain and gather related risk data to achieve more comprehensive transparency.

Advancing product-level risk management

In addition to supplier-level assessments, greater emphasis will be placed on product-specific risk factors.

Preparing for evolving regulatory requirements

Frameworks such as the EU Deforestation Regulation (EUDR) and the Corporate Sustainability Due Diligence Directive (CSDDD) will become increasingly important. Further optimizing due diligence processes will therefore be critical to ensuring effective compliance with future regulatory obligations.

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✔ Automate and optimize supplier ESG risk assessments

✔ Systematically integrate sustainability and risk data into internal IT systems

✔ Streamline risk management and make relevant data available across the entire organization