TY  - CONF
TI  - Value-Driven vs. Market-Driven Purchasing of Kitchen Cabinets
C1  - Haifa, Israel
C3  - 18th Annual Conference of the International Group for Lean Construction
SP  - 202
EP  - 211
PY  - 2010
AU  - Beldsten, Louise
AU  - Bjornfot, Anders
AU  - Sandberg, Erik
AD  - PhD student, Department of Management and Engineering, Linköping University, 581 83, Linköping, Sweden, Phone +46 13/281547, FAX +46 13/281101, louise.bildsten@liu.se
AD  - Assistant Professor, Department of Civil, Mining, and Environmental Engineering, Luleå University of Technology, 971 81, Luleå, Sweden, Phone +46 920/492067, anders.bjornfot@ltu.se
AD  - Assistant Professor, Department of Management and Engineering, Linköping University, 581 83, Linköping, Sweden, Phone +46 13/284492, erik.sandberg@liu.se
ED  - Walsh, Kenneth
ED  - Alves, Thais
AB  - 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.
KW  - Lean purchasing
KW  - Prefabrication
KW  - Purchasing strategies
KW  - Supply chain management
PB  - 
T2  - 18th Annual Conference of the International Group for Lean Construction
DA  - 2010/07/14
CY  - Haifa, Israel
L1  - http://iglc.net/Papers/Details/711/pdf
L2  - http://iglc.net/Papers/Details/711
N1  - Export Date: 27 April 2024
DB  - IGLC.net
DP  - IGLC
LA  - English
ER  -