Case Study: Tata Steel achieves integrated procurement visibility with Capgemini

Tata Steel - Customer Case Study

Tata Steel Group, a major global steel manufacturer, faced a significant challenge in procurement after a period of rapid growth through acquisition. Its UK operations, using multiple legacy ERP systems, had a labor-intensive and error-prone process for gathering data, which prevented an integrated view of spend and hampered negotiating power. To support a shift to a single SAP ERP system, Tata Steel engaged Capgemini to help leverage SAP’s Business Information tool to overcome these data integration and reporting obstacles.

Capgemini implemented a Business Information Management solution, creating a suite of eight flexible reports that allowed users to analyze procurement data across 25 variables. This gave procurement staff immediate, self-service access to spend information. The solution delivered substantial results, including the rationalization of 850,000 spare part items down to 300,000 and contributing to annual savings targets of £100 million. The system also enabled targeted inventory reductions in excess of £20 million across the UK, providing the accurate spend visibility essential for Tata Steel's cost-saving goals.

Tata Steel

Nick Reeks

Group Development Director