Purchasing strategies in industrialized 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.