Optimize, Integrate and Simplify through Category Management Process Implementation
Using a category management approach may seem tedious, tactical and overly detailed. Yet, it can yield results that are better than expected. This was the case with Tempur Sealy International (TSI). Working with an outside consultant, they selected a standard category process and then implemented each step in a variety of direct material categories. Not only did TSI achieve their savings goals, they also implemented supplier management and contractual best practices like strategic and transactional performance measurement, gains sharing, and cost transparency.
The full content of this page is only available to SIG Members.
Using a category management approach may seem tedious, tactical and overly detailed. Yet, it can yield results that are better than expected. This was the case with Tempur Sealy International (TSI). Working with an outside consultant, they selected a standard category process and then implemented each step in a variety of direct material categories. Not only did TSI achieve their savings goals, they also implemented supplier management and contractual best practices like strategic and transactional performance measurement, gains sharing, and cost transparency.