Supply Chain Management | Tesla | Essay

SUPPLY CHAIN
MANAGEMENT

Contents
Introduction............................................................................................................... 3
Supply chain, logistics, and warehousing of Tesla to examine the issues faced by the Company.......3
Conclusion.............................................................................................................. 10
References.............................................................................................................. 11

Introduction
The essay comes up to develop proper understanding of operations, SCM, and logistics
contributing to the organisational success. Furthermore, the essay have selected Tesla to
describe complex situations in relation to operations, supply chain management and. Supply
chain management face issue several issues due to dynamic business environment in Tesla.
One can identify service delivery system and manufacturing procedure to support the market.
Furthermore, there are some recommendations to how business have improved performance
by considering triple bottom line, which are incorporated to comply whether Tesla operations
cater economic, social and environmental as its three dimension of sustainability. As the
assessment suggests selecting the core issues affecting Tesla for the supply chain
management such as issues in new production techniques and managing people supply chain
in an inappropriate manner (Lemmens, Decouttere, and Bernuzzi, 2016).
Tesla is an American electric company based on California. The organisation has
specialisation in electric vehicle production. Some of the common issues in supply chain of
Tesla include delay in production, missed quotas, and busted deadlines, which has led to
stock price tumbling with an ain to mitigate the risks; tesla has decided to remove several
colour options. At last, there are few recommendations based on the supply chain issues such
as lean management and total quality management (Jose, and Shanmugam, 2019).
Supply chain, logistics, and warehousing of Tesla to examine the issues faced by the
Company
Supply chain is the collection of suppliers that are needed to attempt in creating specific
product as the chain is made up of links that include several manufactures, completed
product, warehouse, distribution centres so that at final stage they can reach to consumers.
Logistics is viewed as differentiator while determining final bottom line of typical “hard and

tangible goods.” It will enable them to maintain lower costs by providing higher value. Lower
costs is one of the most focused area in logistics with high value (Agrawal, Singh, and
Murtaza, 2018). Logistics is simply concerned with flow of information and materials where
it transfers from supplier to customer. It is not at all related with the inventory resources,
customer response, and using resources in logistics. It established link between marketing and
manufacturing of companies. The approach needed to minimise overall costs to reach
customer can become tough to achieve several number of participants by increasing
efficiency of supply chain. Logistics can cover broad functional areas such as transportation,
inventory management, and network design (Chand, Bhatia, and Singh, 2018).
Manufacturing plans, stores, and warehouses are the facilities that are key components at
network design. For example- Walmart can succeed with few links in the supply chain and
purchasing generic goods that cone from manufacturer rather than any supplier with a brand
name. Vendor managed inventory can mandate manufacturers where they are responsible to
manage items in the warehouse of Walmart. The company is selecting suppliers, collaborate
them, and meet the quantity, which it demands with low price (Barnett, 2018).
Tesla is an automotive company, which have long way as it is making innovative, luxurious
and incredibly popular cars in California as located in incredible costly real estate. More
designing in terms of digital supply chain, which the company promotes. New algorithm
updates can be pushed where digital supply chain is promoted to existing cars owned
(Gaustad, Bustamante, and Badami, 2018). The cost and consistency needed to maintain the
transportation network by determining the mode of goods affecting inventory. These basic
concepts of logistics and supply chain management, inventory planning is the way through
which Tesla can minimise inventory levels because of liner relationships with appropriate
costs. Here demand has been forecasted so that there would be no idea for goods and
inventory, which would not move from warehouses to customers. The forecasted number of