ORAFOL
Streamlines Digital Transformation of Sustainable Procurement

With IntegrityNext, ORAFOL embeds sustainability and compliance as central pillars of supplier management.

 

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Industry Plastics manufacturing and processing

Core business areas Adhesive graphic products, retroreflective materials, adhesive tape systems, and polymer films

Annual revenue €883 million (2024)

Employees 3,000 (2024)

Headquarters Oranienburg, Germany

Supplier network More than 2,000 tier 1 suppliers

>2,000

suppliers screened for sustainability

100%

of critical raw material suppliers assessed for ESG risks

By integrating IntegrityNext into our systems, we can fully embed sustainability into supply chain management and efficiently meet regulatory requirements. The digital transformation of procurement allows us to identify risks at an early stage and implement targeted mitigation strategies.

Daniel Gulotta
Strategic Procurement Manager, ORAFOL Europe GmbH

How ORAFOL Uses Our Platform

  • Main applications

    • Supply chain due diligence

    • Compliance with the German Supply Chain Act (LkSG)

    • Preparation for the EU's Corporate Sustainability Due Diligence Directive (CSDDD)

  • Suppliers screened More than 2,000 tier 1 suppliers
  • Suppliers subject to self-assessments Approximately 400 tier 1 suppliers

ORAFOL Goals We Support

Digitalization of Supplier Management

Embed sustainability processes into the central system landscape – for holistic risk management.

Ongoing Risk Analysis

Continuously and proactively assess critical sustainability risks, including for new suppliers during onboarding.

Compliance with the German Supply Chain Act (LkSG)

Ensure the efficient implementation of regulatory requirements.

Enhanced Supply Chain Transparency

Gain new insights into supplier business practices and provide cross-departmental data access.

Corporate Context

ORAFOL Europe GmbH is a medium-sized high-tech company headquartered in Germany. It operates 31 sites worldwide and is a global market leader in plastics manufacturing and processing. The company relies on a wide variety of raw materials, feedstocks, and upstream products, most of which are sourced from suppliers in Europe.
 
Like many companies, ORAFOL is facing new challenges in supplier management due to legal requirements such as the German Supply Chain Act (LkSG) and the forthcoming European Corporate Sustainability Due Diligence Directive (CSDDD). The company has decided to seize these developments as an opportunity to advance both the sustainability and digitalization of supply chain management. For this reason, ORAFOL has transitioned from predominantly manual processes to a connected SaaS system landscape (Software as a Service).
 
This approach gives ORAFOL a 360° view of its suppliers, laying the foundation for efficient LkSG compliance and adherence to future sustainability regulations. The company was also seeking a SaaS solution to digitalize risk assessments under the LkSG, further increase supply chain transparency, and ensure robust risk management.
 
Why ORAFOL chose IntegrityNext:
 
  • Simple data integration into the ORAFOL system landscape via API interface
  • Standardized, multilingual, and LkSG-compliant questionnaires with flexible add-on modules
  • Free use of the platform for suppliers
  • Comprehensive customer and supplier support
  • High level of process automation
  • Customizable analysis of supplier assessments, e.g. at site level

 

Figure: The ORAFOL System Landscape

Implementing the LkSG presented the perfect opportunity for us to promote both sustainability and digitalization in procurement. Thanks to the high degree of automation on the IntegrityNext platform, we can save time and resources while enhancing transparency in our supply chain. Other departments also benefit from this optimization.

Project Description

Key Stakeholders

The Strategic Procurement department is responsible for supplier management, sourcing, and the implementation of the German LkSG as well as various EU regulations, including the CSDDD, the Deforestation Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM), the Packaging Regulation (PPWR), and Scope 3 emissions requirements. Risk management also falls under the remit of Strategic Procurement.

Depending on the issue at hand, other departments are involved in sustainability topics. These include Compliance, Finance, R&D, Production, Quality Management, Sales, and Sustainability.

To advance the digital transformation of procurement and embed the LkSG compliance process, ORAFOL hired the procurement consultancy targetP. The company supports ORAFOL in developing a 360° procurement system that incorporates sustainability as a core pillar.

Roll-Out

targetP has supported the project with IntegrityNext from the beginning. Initially, the focus was on consolidating supplier master data from different ERP systems and correctly assigning NACE codes to enable targeted country and industry risk analyses.

Self-assessments on LkSG-relevant sustainability topics are automatically requested from high-risk suppliers. These cover human and labor rights, environmental protection, anti-corruption, occupational safety, and supply chain responsibility. Product compliance also plays an important role. Therefore, ORAFOL requires suppliers to provide extensive information on product constituents, conflict minerals, and chemicals, particularly to ensure adherence to the Minamata Convention (mercury), the Stockholm Convention (persistent organic pollutants), REACH, and RoHS.

The results of the IntegrityNext assessments are fed into the 360° supplier management system “Procurence Meercat” through an API interface (see illustration above) where they can be reviewed per supplier and broken down individually by country, industry, or topic.

As part of a holistic risk management approach, sustainability data is subsequently combined with other critical information, such as financial metrics.

New suppliers are assessed during onboarding via the IntegrityNext platform – for example on environmental protection, and human and labor rights. They are also required to accept the ORAFOL Code of Conduct or provide proof of a comparable internal policy. In addition, automated country and industry risk analyses are performed. This allows the company to identify relevant risks early and address them proactively during contract negotiation.

Key Outcomes

Automated ESG Risk Analysis

All tier 1 suppliers underwent a general risk assessment. Critical raw material suppliers were subject to a detailed risk analysis. New business partners are also continuously and proactively assessed to ensure early risk detection.

Seamless Integration into the System Landscape

The ESG risk analysis is fully integrated into ORAFOL’s supplier management system and linked across departments – enabling holistic risk management. Assessments can be viewed per supplier at the country, industry, and topic level.

Efficiency Gains

By streamlining processes such as risk analysis, supplier self-assessments, and onboarding, ORAFOL has achieved major time savings while ensuring data accessibility across departments and functional units.

Sustainability as a Strategic Pillar

The digital implementation of LkSG requirements and integration into the 360° supplier management system has further embedded sustainability as a core strategic priority.

Future Outlook

For the coming years, ORAFOL has set the following priorities:

Sustainability Regulations

In addition to the Corporate Sustainability Due Diligence Directive (CSDDD), further regulations are becoming increasingly relevant for ORAFOL, notably the Corporate Sustainability Reporting Directive (CSRD), the EU Deforestation Regulation (EUDR), and the EU Carbon Border Adjustment Mechanism (CBAM).

Strategic Prioritization

ORAFOL has realigned its sustainability strategy at the group level and within individual departments. Priorities include decarbonization along the value chain, greater resource and raw material efficiency, long-term partnerships with suppliers, the selection of sustainable business partners, and high social and environmental standards.

Supply Chain Transparency

Visibility into the supply chain is becoming a strategic necessity. ORAFOL plans to collaborate more closely with direct business partners to uphold sustainability standards throughout the supply chain – also at lower tiers.

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Feeling Inspired by ORAFOL's Success Story?

Speak with our team and find out how IntegrityNext can take your sustainable procurement efforts to the next level.

✔ Automate and optimize supplier risk assessments

✔ Embed sustainability across your system landscape

✔ Ensure compliance with regulatory requirements