Value Chain

The Value Chain of a pre-owned music CD internet site.

Raw Materials
The raw materials for the pre-owned CD business would be the used CD’s, CD cases and inserts for the CD’s.
Inbound Logistics
This would consist of any tracking system on the CD’s purchased by the company. If the CD’s are shipped by UPS the company will have a tracking number to let them know when the product will be at the store.
Warehouse and Storage
This would be the place the company stores their raw inventory. The freshly purchased used CD’s. The replacement CD cases and any replacement inserts or paper for printing new inserts and/or CD stickers.
Production
A pre-owned CD store may not have a traditional production line since it sells already produced goods but there is an element of process control. All products need to be catalogued. The CD’s may need to be refurbished by eliminating scratches and replacing the sticker on front of the CD. Cases may also be cracked or scratched and in need of repair or replacement. The inserts or CD books may be missing or damaged and in need of replacement.
Finished Product Storage
Depending on the amount of sales, the company would need adequate storage for the used CD’s. This type of business would need a good amount of inventory to be relevant. If this company lacks sufficient inventory a customer may not take the website seriously and may not purchase now or in the future. The for sale product should be organized in a way that it can be easily retrieved. This can be done either manually or by an automated system.
Outbound Logistics
For a used CD store the distribution system will be fairly simple. Because the product is small and lightweight it can be shipped to customers using the Postal Service or UPS. The important part of this step is making sure the customer gets the right product shipped to the right address. For this to happen the company should have a system in place to insure the right orders go to the right place in a timely manner.
Marketing and Sales
A used CD store can be a risky venture in the age of digital music. The marketing department will need to come up with an inventive marketing strategy. This may be done by appealing to people who like to have their music in hand or like to build a music library. The marketing and sales department of this company will be the ultimate factor in it’s’ survival.
Customer Service
Customer service will be a large part of this business. Buyers may be looking for a rare CD or an album that is no longer produced new. A faulty CD may be sent to a customer and need to be replaced. Customers will want to track their order to have a finite delivery date. And all orders and/or complaints will be handled by customer service, either over the phone or over the website.