Case Study: Tagal Refreshed Its Sourcing Strategy To Regain Business Competence

Tagal, a joint venture of ThyssenKrupp Steel Europe and Angang Steel in China, has focused on hot-dip galvanizing for some of the world's largest automakers since 2001. Tagal needed to improve its IT efficiently to accelerate its business processes and manufacture its products more quickly. To do this, its IT team had to spend more time engaging the business to determine how to provide services that added more value. As a result, the firm re-evaluated its sourcing strategy and vendor selection criteria and spent more time on contract negotiations with service providers. In the end, Tagal selected Dell Services to provide infrastructure and application management. Dell helped Tagal reduce its total cost of ownership by 20% and double the performance of its enterprise resource planning solution. This report takes a closer look at Tagal's sourcing and vendor management strategy and contains valuable lessons for clients in the manufacturing industry in China, including multinational corporations and joint ventures.