Towards Partnerships in Industrialized Housing

Abstract: 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.