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Purchasing Strategies in Industrialized Housing: a Multiple Case Study
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology. (Marketing and Logistics)
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology.
(English)Manuscript (preprint) (Other academic)
Abstract [en]

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.

Keyword [en]
Construction materials, industrialized housing, purchasing strategies
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:liu:diva-67111OAI: oai:DiVA.org:liu-67111DiVA: diva2:407346
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2011-08-24
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

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Bildsten, LouiseRehme, JakobBrege, Staffan

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CiteExportLink to record
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Citation style
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