Task 4 - A1.3 Value Chain

Hanson CD from the 1990's

I have opened a new Internet site "CD University" where students are able to buy and sell used CD's to each other. My website entails a value chain, where upstream and downstream management take place. During upstream management, students sell their used CD's, I e-mail a prepaid shipping label, and students then mail their CD's out. The CD's (the raw materials) then travel by mail (an inbound tracking system). The CD's eventually end up at my warehouse where they go through an inventory which keeps track of what we have in stock, what's been sold, what needs to be sent out, and any returns or damages. I process the CD's by checking each one for damage or wear and tear and then downstream management begins. I package the CD (it becomes a finished product and is registered in automated storage and retrieval systems), and it then gets sent out through the mail (outbound logistics). I have a group of marketing specialists that work on the website, to keep it active in search engines, utilizing a promotion planning system. They promote the website through web advertising, mostly on textbook websites which college students often use. In addition to marketing, I have hired a group of customer service representatives whom keep track and control all logistics. They handle all issues including returns, damages, and mailing problems. The value chain at CD University has proved successful thus far.