liu.seSearch for publications in DiVA
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Value-driven Purchasing of Kitchen Cabinets in Industrialized Housing
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology.
Institutionen för Samhällsbyggnad och Naturresurser, Luleå Tekniska Universitet, Luleå.
Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
2011 (English)In: Journal of Financial Management of Property and Construction, ISSN 1366-4387, Vol. 16, no 1, 73-83 p.Article in journal (Refereed) Published
Abstract [en]

Purpose - This article hypothesises that value-driven purchasing of customized kitchen cabinets is more profitable than market-driven purchasing in industrialized housing construction. The hypothesis is examined through a case study of kitchen carpentry at one of Sweden’s largest producers of industrialized prefabricated multi-storey housing. By comparing characteristics of market-driven vs. value-driven purchasing, this article aims to further clarify the benefits and drawbacks of these two strategies.

Design/methodology/approach - A theoretical framework is proposed by comparing characteristics of market-driven vs. value-driven purchasing that clarifies the benefits and drawbacks of these two strategies. An explorative case study of kitchen carpentry at a house manufacturer illustrates purchasing of kitchen cabinets in the industrialized housing industry in relation to the proposed framework.

Findings – According to the case study, from a value perspective, a long-term relationship with a dedicated local, smaller supplier is a preferable choice over a short-term bulk supplier, even if the short-term supplier has (much) lower prices.

Research limitations/implications – This is a single-case study that should be verified by further empirical work of a test-delivery from the local sub-system manufacturer. Such a study would provide more insights into this area of work and make it possible to thoroughly evaluate potential risks. The indicative results in this paper can be made conclusive through quantification of the proposed Lean purchasing characteristics.

Originality/value – A comparison of value-driven and market-driven purchasing is carried out in theory and applied to a real case study that brings new perspectives to purchasing. In this way, the article proposes alternative purchasing strategies to the construction industry.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2011. Vol. 16, no 1, 73-83 p.
Keyword [en]
Lean purchasing, prefabrication, purchasing strategies, supply chain management
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:liu:diva-67110DOI: 10.1108/13664381111116106OAI: oai:DiVA.org:liu-67110DiVA: diva2:407343
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2012-04-03Bibliographically approved
In thesis
1. Towards Partnerships in Industrialized Housing
Open this publication in new window or tab >>Towards Partnerships in Industrialized Housing
2011 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

The purpose of this thesis is to describe and analyse purchasing strategies and their interdependence with the production process and supplier relationships in industrialized housing. The thesis is a multiple case study of four Swedish industrialized timber-housing manufacturers. The case studies included interviews with top managers concerning purchasing, production and supplier relationships. Production is considered the heart of the company. Therefore, to gain an in-depth knowledge of how production affects purchasing and thus supplier relationships and vice versa, observations were made to study the production process. Many different parts and competences need to be coordinated in the creation of a house. In the West, the construction industry has been heavily criticized for low efficiency and effectiveness. Conclusions from the case studies showed that codevelopment, customization and secure deliveries are regarded highly by industrial house builders and to obtain them, long-term relationships with suppliers are preferred. Industrialized house builders are argued to have more long-term relationships with their suppliers than traditional on-site builders. Industrial house builders choose their suppliers based on the purchased products’ value-in-production rather than price. Product and process innovations created in collaboration with suppliers seem to be a way to enhance the production process of houses. Through the site resource of the factory, industrial house builders have the potential to refine their processes in win-win partnerships with suppliers for a more efficient and effective production of houses, as onsite work is harder to standardize and control.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2011. 85 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1479
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-67114 (URN)LiU-TEK-Lic 2011:18 (Local ID)978-91-7393-177-9 (ISBN)LiU-TEK-Lic 2011:18 (Archive number)LiU-TEK-Lic 2011:18 (OAI)
Presentation
2011-04-05, ACAS, Hus A, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Opponent
Supervisors
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2011-05-23Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Authority records BETA

Bildsten, LouiseSandberg, Erik

Search in DiVA

By author/editor
Bildsten, LouiseSandberg, Erik
By organisation
Industrial Marketing and Industrial EconomicsThe Institute of TechnologyLogistics Management
Social Sciences

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 223 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf