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Value-driven purshasing of kitchen cabinets in industrialized housing
Industrial Marketing, Department of Management and Engineering, Linköping Institute of Technology.
Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
Logistics Management, Department of Management and Engineering, Linköping Institute of Technology.
2011 (English)In: Journal of Financial Management of Property and Construction, ISSN 1363-2175, Vol. 16, no 1, p. 73-83Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of this paper is to hypothesize that value-driven purchasing of customized kitchen cabinets is more profitable than market-driven purchasing in industrialised housing construction. The hypothesis is examined through a case study of kitchen carpentry at one of the Sweden's largest producers of industrialised prefabricated multi-storey housing. By comparing characteristics of market- vs value-driven purchasing, this paper aims to further clarify the benefits and drawbacks of these two strategies. Design/methodology/approach – By comparing characteristics of market- vs value-driven purchasing, a theoretical framework is proposed that clarifies the benefits and drawbacks of the two strategies. An explorative case study of kitchen carpentry at a house manufacturer illustrates purchasing of kitchen cabinets in the industrialised housing industry in relation to the proposed framework. Findings – The case study results indicate that, from a value perspective, a long-term relationship with a dedicated local smaller supplier is a preferable choice over a short-term relationship with a low-price mass producer. 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- 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 paper proposes alternative purchasing strategies to the construction industry

Place, publisher, year, edition, pages
2011. Vol. 16, no 1, p. 73-83
National Category
Building Technologies
Research subject
Timber Structures
Identifiers
URN: urn:nbn:se:ltu:diva-12669DOI: 10.1108/13664381111116106Scopus ID: 2-s2.0-84896507499Local ID: bd5d8e6b-af82-4b0c-9604-2fda5c80b1cfOAI: oai:DiVA.org:ltu-12669DiVA, id: diva2:985620
Note
Validerad; 2011; 20110429 (anbjo)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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CiteExportLink to record
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  • apa
  • harvard1
  • ieee
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  • Other locale
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Output format
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