Question

Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Sandy determines that the best value she can add is by creating a service that offers free next day shipping on any order over $50. Where in the value chain is Sandy adding value?
a. the primary value activity outbound logistics.
b. the primary value activity inbound logistics.
c. the primary value activity marketing and sales.
d. the primary value activity operations.

Answer 1

Answer:

a. The primary value activity outbound logistics.

Explanation:

"Outbound logistics can be defined as the process of storing, transportation and distribution of goods to customers."

The  process begins from a customer sales order, moves to a warehouse packing and completes upon the delivery of product. To ensure smooth running of outbound logistics, businesses must choose the right channels of distribution, maintain a sensible stock of inventory and optimize their delivery options.

In the given scenario, as Sandy is removing shipping cost under specific conditions, she is adding value on distribution process. Hence Option a. is correct.