1. Tutorial 3
CONSTRUCTION SUPPLY CHAIN
MANAGEMENT (MGT60803/QSB 2433)

2. Tutorial
• Explain the following term
– Competitive Advantage
– Value Added
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3. Competitive Advantage
• Competitive advantage starts from many
discrete activities a firm performs in
designing, producing, marketing, delivering
and supporting its products.
• Each of these activities can contributes to a
firm’s relative cost position and create a basis
for differentiation (determines buyer needs).
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4. Competitive Advantage
• Cost advantage
i. Low-cost physical distribution system
ii.Highly efficient assembly process
iii.Superior sales force utilization
• Differentiation
i. Procurement of high quality raw materials
ii.Responsive order entry system
iii.Superior product design
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5. Tutorial (Discussion)
1. Define Supply Chain and Value Chain.
2. What are the advantages of using IBS and BIM in
construction industry ?
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6. MIT / MUST Strategic Management 6

7. Porter’s Value Chain
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• Example: Ikea
• From a tree  wood  plank  furniture
• Every activity performed create value