Purchasing Strategies in Industrialized Housing: a Multiple Case Study
(English)Manuscript (preprint) (Other academic)
Many writers in construction management have been considered purchasing strategies in the construction industry as short-term and arms-length. However, a different picture is portrayed in the manufacturing industry, where purchasing strategies are often long-term to secure supply for production. Industrialized building is at crossroads between construction and manufacturing, which raises the question of what purchasing strategies are applied. The purpose of this study is to investigate how the Kraljic model (1983) can be applied in industrialized housing. The purchasing strategies were studied through interviews with three top managers at three different timber-housing manufacturers in northern Sweden. Industrialized housing manufacturers can take advantage of standardized construction systems and secure production flows that eliminate waste and improve quality. Evidence proves that long-term relationships similar to those in the manufacturing industry also exist in the construction industry regarding factory production. An analysis of these strategies suggests that the total product offer in terms of customization, including logistic services, plays an important role in choosing a supplier to satisfy the needs of efficient production. A new model is developed regarding the effectiveness of the purchasing strategies on the production process, where products are classified according to value-in-production instead of their monetary value.
Construction materials, industrialized housing, purchasing strategies
IdentifiersURN: urn:nbn:se:liu:diva-67111OAI: oai:DiVA.org:liu-67111DiVA: diva2:407346