Logistics and Supply Chain Management: Exploring Key Concepts and Practices in Tesla Company

LOGISTICS AND
SUPPLY CHAIN
MANAGEMENT

Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Exploring key supply chain concepts, principles and process in the context of Tesla company
and considering good practices and failure..................................................................................3
Contribution of logistics and supply chain strategy in competitiveness......................................6
Issues in development of supply chain strategy and solutions based on good practice models . 8
Interrelationships between supply chain and organization areas...............................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Supply chain management is process of handling all over production flow from purchasing the
row material to delivering the final good to the end consumer. Logistics is the process of
managing all over the process how to received row material, resources and stored them and how
to transported to their final customer(Cornell B 2021). Supply chain is the network between
company supplier and manufacturing to produce and distribute a specific product and services. In
whole process includes producer, warehouse, transportation, distribution centre, retailer. Tesla
company is an American automotive company, founded in July 2003 by martin Eberhart.
Number of employees approximate 110,000. The name of this company is tribute to investor and
electrical engineer Nikola Tesla.
The current study will explain about supply chain concept, principle and process in the Tesla
company and considering good practices and failure of this company. Analysis how logistics and
supply chain strategies contribute to the competitiveness of the company considering
globalization factor. Describing the issues for development of supply chain strategy identifying
solution based on practices models. Evaluating the interrelation between supply chain
management and other areas of company and considering their importance to success of
business.
MAIN BODY
Exploring key supply chain concepts, principles and process in the context of Tesla company and
considering good practices and failure.
Supply chain concepts -
Supply chain concept define a series of step that help the company to get a product or services to
the customer(Paras M 2020). The steps involve in this is converting the row material into
finished good, transporting that good, and providing to the end consumer. Supply chain help the
Tesla company to getting their car and other product across the world. It is great deal of planning
the product, forecasting the product, according to the product planning, procuring the row
material and converting into the finished good and applying logistics expertise to move the
product to the end customer without strong supply chain company not reach to the customer.
Four components of supply chain in the company is practical integrating, procedure alignment,
network base and market sensitivity. Virtual integration is important for the business to track the
market demander hat the customer want in the market.

SCM involve various steps and process that must be necessary for completing their activity with
more efficiently and on time to the end customer. The main goal of supply chain is providing the
high quality product from the point of origin to the point of end product user. It is two-way flow
of inflow of information and data between supply chain participant so it helps to create profile of
the demand of the parties and fast detect the problem. Supply chain also help the company to
move product back for many reason like repairing, returning, recycling, isposal through supply
chain flow. Because of all this process of supply chain, manager and whole team are require for
the company to manage the all process, taking good decision in the context of what to purchase,
how to proceed, how to sell the product. Basically supply chain focus on distinguishing,
acquiring, access, orienting and management the final goods and finally providing to the end
consumer.
Principles of supply chain -
 Conform supply chain according to customer needs — The Tesla company and supply
chain manager understand the consumer needs, so its require to distribute the customer
into the different segment in order to under them better on the basis of sales volume and
profitability(Srai J S 2019.). Anticipating the customer need is important for supply chain
to aligned to provide to the need.
 Customizing the logistics network -After segment the customer on the basis of their
need, supply chain manager have to make logistic network which help to serve in
different segment. It also prioritizes the delivering process and suitable way to provide
ghastly in the market.
 Compounding demand planning with supply chain -Supply chain team are train to
share data With the company partner in order to avoid the unnecessary stock.
 Differentiate product close to the customer -Standardization and differentiation are two
different think. Differentiate product according to the customer needs, sales, according to
the cost.
 Develop the IT that help to take decision -IT projects done in separations because This
process provide understanding about the process and help to determine the what kind of
innovation are required.