Understanding Operations, Logistics & Supply Chain Management in Tesla

Understanding
Operations,
Logistics &
Supply Chain
Management

Table of Contents
Introduction..........................................................................................................................................3
Introduction to company – TESLA..................................................................................................3
Analyse all the areas of operations, logistics and supply chain management in Tesla for New
product.............................................................................................................................................4
Managing Quality............................................................................................................................5
Economic, Environmental and Social consideration approach of Tesla..........................................7
Recommendations............................................................................................................................7
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

Introduction
The operations, supply chain management are the major activities which are essential
functions for every single organisation. These are the functions which are helpful to management in
controlling and examining availability of material and the other services within business entity. The
operation management is the method under which management is accountable to transform the raw
material into finished goods by using designing and other processes in order to generate value to
manufactured product that may lead to have competitive edge within the marketplace and to render
profits to business. On the other side supply chain management is the procedure under which
movement takes place of material and goods, which are managed and controlled within a specific
process. Supply chain management involves planning, execution, control and a very effective
monitoring of all the related activities or distribution channels and they all these factors are meeting
customers’ demand. The logistics management is the procedure which undertakes assembling of
resources and required material so that to process that to make finished goods which is deliverable
to customers. All these are most essential tools of the company as they help them to manage
resources of company is efficient manner. (Agrawal, Singh and Murtaza, 2016)
Introduction to company – TESLA
TESLA is an American electric vehicle company which were founded in 2003 by Elon musk,
Marc Tarpernning, Martin Eberhard and Ian wright. In the current times Elon musk is the largest
shareholder of this company which is 21.7%. The company is having subsidiaries like Solarcity,
Tesla Grohmann automation, DeepScale and Hiber system. The managerial staffs of Tesla has
implemented effective instruments for appropriate management of logistics and supply chain as
well within the business.
Tesla is having vertical supply chain management for this they are having their operational plant in
California in which they are working to attain short term goals. Furthermore, they have started to
batteries in Nevada so as to meet demands of batteries in their cars. In order to control their
deliveries, Elon Musk has taken the ownership to choose integration sub-contractor system so as to
stay transparent about their supply chain. (Akakpo and et. al., 2019)
Tesla was facing mismanagement in their supply chain management, and to deal with this
problem the CEO Elon Musk is moving towards self-sufficiency and they are having mass
production in their factories so as to utilise all the input resources in an efficient manner.
The management of Tesla is utilising appropriate supply chain management along