Bildsten, L; Rehme, J and Brege, S (2010) Applying the Kraljic model to the construction sector: The case of a prefab housing factory. In: Egbu, C (ed.) Proceedings of 26th Annual ARCOM Conference, 6-8 September 2010, Leeds, UK.
Abstract
The purchasing strategies in the construction industry have been considered by many writers in construction management as short-term and arms-length. However, a different picture is portrayed in the manufacturing industry, where the purchasing strategies are mostly long-term to secure supply for production. Industrialized building is at the crossroad 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 an industrialized housing factory. The purchasing strategies were studied through interviews with the CEO of a timber housing manufacturer 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. The analysis of these strategies suggests that the total product offer, including logistic services, plays an important role in choosing supplier.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | construction materials; industrialized housing; purchasing strategies |
| Index terms: | manufacturer, interview, Sweden, purchasing, manufacturing industry, strategy, evidence, construction material, housing, construction system, industrialized building, construction industry, construction sector |
| Subjects: | practitioner, construction type, data collection methods, evaluation and assessment methods, building materials, Geography, management, procurement strategy, industry analysis, building construction |
| Topics: | Research Practice, Geographical Context, Engineering Principles, Business Strategy, Construction Technology, Procurement, Roles and Professions |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here