Value Chain

There are many parts of a value chain that allow a business or operation to function. The first part if the CD value chain is collecting the raw materials that are part of upstream management. Materials can include the cd's themselves, cases, boxes, and more. Inbound logistics is used when the new and used cd materials are transported to a warehouse, or other storage facilities before new CDs are finalized. The raw materials are processed, the final cd product is produced, and it is moved to finished product storage, in this case, perhaps a store storage area. The new cd's and used cd's from third party vendors Marketing are then shipped out as part of outbound logistics. Marketing and sales tactics are used as part of downstream management. These sales and marketing tactics are initiated in the value chain to move the cd inventory. An online marketing plan might be developed in the form of an advertising campaign to spread the word of the internet site and create repeat customers. Repeat customers are crucial because of the 80/20 rule, meaning 80% of your customers make up 20% of your business. Finally, there is the customer service aspect of the value chain. Customer service ensures that products are delivered, the product is up to expectations, and students are happy with the cd store's service.