Developing a partnership framework for the housebuilding industry
Salonen, Sampsa (2018)
2018
Tuotantotalous
Talouden ja rakentamisen tiedekunta - Faculty of Business and Built Environment
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Hyväksymispäivämäärä
2018-01-10
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201712212474
https://urn.fi/URN:NBN:fi:tty-201712212474
Tiivistelmä
This thesis was written as a part of a performance program in a case company. The company operates in the construction industry. The performance program aims to lower the overall production costs of construction by 15 percent. To achieve this, the case company aims to create a strategy to co-operate with strategic partners. Supply chain partnerships are widely used in traditional manufacturing, but it seems that the construction industry has yet to be able use the full potential of strategic supplier partnerships.
The construction industry sets challenges for partnering due to its project nature and established ways. In addition, there are no well-established ways for creating and implementing partnerships in the industry. This thesis aims to find solutions for these challenges by analyzing the existing literature and by creating a framework for assessing partnerships in the construction industry.
The objectives of the thesis were to establish metrics and a framework for partnering in housebuilding and to then segment the supplier network of the company according to partnering potential. Two fundamental questions were asked:
• On what basis should a partnership opportunity in the construction industry be evaluated?
• Which procured entities in a housebuilding project hold the most potential for strategic partnering?
The framework and supplier metrics were established by examining existing literature on strategic partnering in both traditional manufacturing and in construction. The segmentation of the case company’s supplier network was made based on qualitative interviews within the organization supported by supplier data.
The analysis indicated that the partnering potential of procured entities is perceived higher in some entities than others. A visual model of the supplier network was created, which indicates the different perceived potential of the procured entities and their financial significance. Instead of focusing on simple supplier metrics, companies in the construction industry should focus on segmenting the entities according to partnering potential.
The construction industry sets challenges for partnering due to its project nature and established ways. In addition, there are no well-established ways for creating and implementing partnerships in the industry. This thesis aims to find solutions for these challenges by analyzing the existing literature and by creating a framework for assessing partnerships in the construction industry.
The objectives of the thesis were to establish metrics and a framework for partnering in housebuilding and to then segment the supplier network of the company according to partnering potential. Two fundamental questions were asked:
• On what basis should a partnership opportunity in the construction industry be evaluated?
• Which procured entities in a housebuilding project hold the most potential for strategic partnering?
The framework and supplier metrics were established by examining existing literature on strategic partnering in both traditional manufacturing and in construction. The segmentation of the case company’s supplier network was made based on qualitative interviews within the organization supported by supplier data.
The analysis indicated that the partnering potential of procured entities is perceived higher in some entities than others. A visual model of the supplier network was created, which indicates the different perceived potential of the procured entities and their financial significance. Instead of focusing on simple supplier metrics, companies in the construction industry should focus on segmenting the entities according to partnering potential.