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Value-driven vs. market-driven purchasing of kitchen cabinets
Linköping University.
Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
Linköping University.
2010 (English)In: Proceedings IGLC-18: 18th Conference of the International Group for Lean Construction / [ed] Ken Walsh; Thais Alves, Haifa: Technion-Israel Institute of Technology , 2010, 202-211 p.Conference paper (Refereed)
Abstract [en]

In economic and management literature, the relationship between supplier and buyer can be more or less intimate. It can vary from market-driven with a constant change of suppliers to a value-driven relationship with one sole supplier. Purchasing strategies of construction companies have often been described as short-sighted, where price is the most considered aspect. Recent lean management literature promote value-driven purchasing, since it provides benefits such as just-in-time delivery, zero defects and customized products through close technical collaboration. 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. At the case company, kitchens are ordered cabinet-by-cabinet and then installed inside the factory. The company is considering the possibility of a long-term relationship with a smaller local supplier that can deliver a new kind of innovative kitchen cabinet solution that is prefabricated. If the local supplier can meet the expectations of just-in-time delivery, zero defects and a product -tailor-made‖ for the housing company, there is much to gain.

Place, publisher, year, edition, pages
Haifa: Technion-Israel Institute of Technology , 2010. 202-211 p.
Research subject
Timber Structures
URN: urn:nbn:se:ltu:diva-34638ScopusID: 84866116265Local ID: 8e62d3c0-dac8-11df-8b36-000ea68e967bISBN: 978-965-555-495-3 (PDF)OAI: diva2:1007889
Annual Conference of the International Group for Lean Construction : 14/07/2010 - 16/07/2010
Godkänd; 2010; 20101018 (ysko)Available from: 2016-09-30 Created: 2016-09-30Bibliographically approved

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