Louise Bildsten

Buyer-supplier relationships in industrialized building

Close collaboration is considered important; but is close collaboration for all purchases necessary to create value-in-production? In construction as well as in other industries, companies purchase a variety of items that require different amounts of attention to the relationship with suppliers. Buyer-supplier relationships are investigated in relation to how they bring value-in-production in the industrialized building sector. An adaptation of the Kraljic model is applied to the context of industrialized housebuilding in Sweden. Different relationships and different purchased items are classified with the aim of revealing patterns that may prove useful when determining purchasing strategies intended to create value-in-production. Purchasing strategies were studied through data collection at four industrialized housebuilders. Analysis of these strategies suggests that the total product offer from suppliers in terms of customization, logistics and standardization plays an important role in the choice of suppliers in order to satisfy the requirement for efficient production. Long-term relationships enable the development of a specific way of working that adds value-in-production. A new purchasing portfolio model for determining the effectiveness of purchasing strategies on the production process is thus presented, where products are classified according to value-in-production.

A future for facility management

Purpose This paper aims to discuss the current debates in facility management to understand where the research community is working and where the facility management sector and discipline might be heading. Design/methodology/approach A review of research outputs has been undertaken to identify research themes. The discussion is based on developments that are already shaping how one should view facility management and outlines a possible future based on a number of strategically important questions and their likely answers. Findings There is a broad landscape of research themes; yet, a significant portion of the most-cited journal papers were published more than 10-15 years ago. Current debates are focused mostly on operational improvement; few are directed at more strategic objectives. Those in the informal media are concerned with more speculative themes, particularly the internet of things (IoT) and artificial intelligence (AI), which are indicative of disruptive technology. These themes are debated mostly by practitioners. Originality/value Many views are expressed in this editorial – some are controversial whilst others should be regarded as matters of fact. The underlying aim is to stimulate debate and action among readers about what appears to be a dilemma for the facility management sector and discipline. Does it continue along the same trajectory or should it be bold and strike out in new directions and meet the challenges presented by disruptive innovations, notably the IoT and AI? Hard choices await and not all decisions will lead to preferred outcomes.

Purchasing strategies in industrialised building - A comparison of Australian and Swedish companies

Companies adopt different rationales for purchasing in order to make production processes as efficient as possible. This paper presents the results of an investigation into how purchasing strategies can vary between companies and countries. Two industrialised building companies, one in Sweden and one in Australia, were the objects of study. The purpose was to compare and understand the rationale behind their purchasing strategies. The interviews and the observations in the factory revealed the differences in the purchasing strategies due to the companies’ prerequisites, expectations and cultures. The strategies proved to be different in terms of the split between in-house and outsourced work. Some aspects of the respective strategies did, however, prove to be similar, such as the purchase of prefabricated structural components. It could be useful for researchers and practitioners to appreciate the advantages and disadvantages of different supply structures, not least parallel sourcing. In this latter regard, benefits appear to outweigh potential disadvantages that single sourcing confers even where partnerships exist.

A framework for understanding purchasing in building construction companies

Purchasing on the part of a building construction company involves actors inside and outside the organization. These actors are driven by different motives that influence purchasing decisions in different situations. An explicit framework that assists in understanding the different purchasing situations would be of benefit to companies and researchers. Through a study of purchasing theory and practices, including interviews with a number of building construction companies, a framework of purchasing is proposed. The framework covers all stages in the purchasing process and focuses on four factors: (1) purchasing situations; (2) level of complexity; (3) active roles and (4) supply chain involvement. The inter-relationships between these factors are discussed from the perspective of the companies.