Tesla: Operations, Logistics, and Supply Chain Management Review

This report provides an in-depth analysis of Tesla's operations, logistics, and supply chain management. It begins by reviewing relevant theories and discussing how Tesla's operational functions support its market, specifically in the design of goods and services, quality management, job design, and maintenance. The report details Tesla's manufacturing processes, including general assembly, automation, agile manufacturing, stamping press, body shaping, and seat fitting. Furthermore, it examines the infrastructure Tesla uses to manage its delivery system, dividing it into express delivery and direct carrier options. The report concludes with recommendations based on the triple bottom line model (profit, people, planet) to enhance financial performance, employee productivity, and environmental sustainability through strategies such as lowering product prices, providing financial facilities, offering employee training, and adopting eco-friendly production techniques. The study emphasizes the importance of balancing economic, social, and environmental factors in Tesla's business strategy.

Understanding
operations logistics and
supply chain
management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Review of relevant operations, logistics and supply chain management theories and their critical
analytic discussion by relevant and similar examples appropriate solutions to operations
maagement.......................................................................................................................................1
Identification and clarification regarding how operations functions support the market that
TESLA serve..........................................................................................................................1
Manufacturing process of TESLA..........................................................................................2
Infrastructure TESLA use to manage these delivery system..................................................3
Recommendation by using triple bottom line model.......................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Operations logistics is considered as a process of moving of finished goods from the
location of distributor or manufacturer to the location of end customer in market. There are
different types of operations in logistics such as procurement logistics, production logistics and
many more (Russell and Taylor, 2019). Whereas supply chain management is refers to the
process of controlling the entire process of production or flow of goods or service. For making
effective supply chain management business or organisation must have to follow certain steps
like- planning, sourcing, manufacturing, delivery and logistics and returning. In this essay
TESLA company is taking into consideration which was founded on 1st July 2003 having
headquartered in Austin, Texas, United states (Schönsleben, 2018). The CEO of company is
Elon Musk. Given company deals in various models of cars such as Model S, Model X, Model 3
and many more. The subsidiaries of given company is Deep scale, Tesla Energy and Tesla
grohmann automation. This essay will majorly focus on manufacturing process it use to make
production of their goods and the infrastructure it use to manage their delivery system. And how
their togetherness these support the market it serves. Relevant recommendation will also given
regarding improving business performance (Wamba and et.al 2018).
MAIN BODY
Review of relevant operations, logistics and supply chain management
theories and their critical analytic discussion by relevant and similar
examples appropriate solutions to operations maagement.
Identification and clarification regarding how operations functions support the market that
TESLA serve.
There are different ways which shows the support of operations functions of TESLA in market
where it operates such as Design of goods and services- Operation department of company help
TESLA in manufacturing of highly cost effective products for customers in market (Queiroz and
et.al 2021). Management of company do this making innovation in business in the terms of
automotive, battery and solar panel business. For increase productivity management of given
company ensure productivity of advanced electric vehicles through continuously innovate its
products and supply chain systems. This would help TESLA to focus on innovation and
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manufacturing of electric vehicles by which they would be able to provide best products to
customer and ultimately led to rise in sales and profitability of company. Quality management-
The main purpose of management of given company to provide quality products to their
customers in market (Caiado and et.al 2021). Therefore in order to improve quality of their
products in market, there is a special department in company which check the quality of their
manufactured products before they sell to final customer and moreover time to time reviews also
taken by management of company to improve their products quality in market. Job design and
human resource- Effective employees help given organisation to achieve its strategic objective.
Therefore TESLA always hire those employees who always focus on innovation and problem
solving skills. Moreover respective company also provide time to time training to their staff
members through various leadership development programs. This would help company to attain
their objectives in market. Maintenance- TESLA always ensures to provide regular monitoring
of their inventory in market. It also do production of their products in excess quantity than their
regular demand. Sometimes it has seen by management of company that their product demand
exceed in market much more than their regular demand. Therefore in order to meet with this
company do excess production of their goods to cope that excessive demand (Helo and Hao,
2019).
Manufacturing process of TESLA.
Different process have been used by TESLA for manufacturing of their products like-
General assemble- In this process of manufacturing, painted body of car comes out and all staff
starts getting interact with it. The major functions under this process are wiring of cars, using of
carpet, dashboard monitoring, proper arrangement of seats and many more. To automate- In this
process of manufacturing, management of given company use automation technology for their
further process such as fixing of batteries, battery packs, hard plastics and many more. Company
believe that technology serves faster in manufacturing process than humans. Agile
manufacturing- It is type of manufacturing methodology in which companies put extremely
focus on response to the customer in market and manufacture their products accordingly. By
adopting agile manufacturing TESLA constantly improving its products in market among
customers. On everyday basis the quality of their seats are improving as well as software is also
improving, iterating, evolving to provide better service to customer in market. The stamping
press- Under this process of manufacturing, flat metal sheet is convert into specific shape. It is
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considered as a fast and effective manufacturing process. For this process in TESLA,
management of company take away all their vehicles from the aluminium rolls to completed
vehicles in factory. Company uses schuler press to give proper shape to their vehicles. It is so
large that it is very difficult to take place in one go. TESLA has to increase their press from 12
strokes per minute to 14 strokes per minute. After sampling press model,it is get inspected by
team of workers. Body shape- After having stampling press, the next step is to give body shape
to cars of TESLA. While giving body shapes it turns out their body panels into fully assembled
auto bodies. An army of robots has given specific sets of tasks for taking the body part of car for
inspection and later they fit, weld or glue them to convert into finished vehicle frame. A seat by
any other name- Finally seat is get fix into vehicles of TESLA, there are lot of firms in market
which provide better seats to auto industry in market. Therefore has made tie ups with different
suppliers who can provide best high quality seats to TESLA (A Look Inside Tesla’s Fremont
Automotive Factory,2021.)
Infrastructure TESLA use to manage these delivery system
For effectively manage their delivery system . TESLA has divided its delivery system
into two parts such as: Express delivery- for picking up from company location and Tesla
direct and carrier direct for delivering to customer location.
Express delivery- Under this infrastructure system, customers after visiting given company
location. Management of company provide all the required registration documents along with
temporary registration and plates, depend upon customer state where they reside. For doing
express delivery company follow give process such as: get sign all the documents and take final
payment from customer, customer can then access their TESLA car by Tesla application, after
competition of all process registered documents submit to state authorities. TESLA direct- In
this process, TESLA car get directly deliver to customer address after signing all the relevant
documents. For this delivery system, management of mentioned company follow this process.1.
After car get deliver to customer address then they need to sign all available documents, submit
payments and get delivery through TESLA application. 2. Customer can get access their TESLA
car through TESLA application. 3. After all legal formalities regarding paper work, management
of company their vehicle papers in 24 hours to customer. In Career direct option of TESLA
delivery, this delivery system is only provided to those customers who lives 220 miles far than
the nearest location. The delivery of products under this option is done by independent carrier.
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Generally under this system, delivery happen in two ways- Before shipment- 1. Customer need
to sign and return any applicable financing documents. Tesla coordinate shipment upon reciept
of payments and signed documents 2. Customer sign all available documents and submit through
Tesla application 3. After all above process, customer receive delivery date from TESLA after
getting confirmed by independent carrier. Delivery day- This process is same which happen is
TESLA direct system (Support, 2021).
Recommendation by using triple bottom line model.
Under triple bottom line model management of given company must focus various social
and environmental causes as much as they earn profit. This model is broken down into three p's
such as: Profit, people and planet (Pagell 2021).
Profit- By this p's companies generally focus on increasing their financial performance to
generate profit for shareholders of company. In this P's companies make better strategic planning
and decisions are carefully designed to increase the profit and reduce cost and mitigating risk.
TESLA can improve their profits by making several changes in their product such as:
 Management of company can increase their profits by lowering down the prices of
products. Currently prices of TESLA cars are very expensive in market and not every
class of customer can afford it. Therefore management of business apply the strategy of
lowering down the price of product, by this strategy prices of TESLA products get lower
down in market through which every class of customer can purchase it which will help to
increase profit of firm much more than it is right now.
 TESLA can also provide several financial facilities to customers while purchasing their
cars. Such as they can make a tie up with one of the financial institution to provide loan
to customers. This would enable other class of customers to easily afford TESLA afford
by giving certain amount of money as instalment per month. Through which customer
would be able to easily afford TESLA card by which company would be able to rise their
sales as well profits (Behl and Dutta , 2019).
People- This P of triple bottom line focus on all the stakeholders and employees who
work in the company. Therefore businesses make those kind of strategies in business which
ultimately help to rise in productivity of employees. Management of TESLA can improve their
staff productivity by adopting following ways.
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 They can provide proper training to their staff regarding how to develop products in best
possible manner. By this way employees skills would get sharper and they would be able
to provide better commitment to overall success of an organisation.
 Management of company can also insist their employees to give better ideas regarding
innovation and development in products so that they can provide much better quality of
products to their customer. This would help to develop creativity among employees in an
organisation and they would feel like that they are part of family of organisation. Hence
satisfy employees in emotional and mental level.
Planet- Given P's of triple bottom line model focus on making those strategies which
helps to making positive impact on the planet. Under this, management of companies, develop
eco friendly strategies in their business so that their production activities so not harm the plant
and society where they are operate. In the terms TESLA, their management can adopt several
strategies such as follows:
 TESLA is already using those technologies which are eco friendly in nature. Moreover
they are also manufacturing electric cars which generate less pollution in the
environment. Therefore in order to protect planet, management of given company can use
more advanced technology much more they are using right now. Hence by this ,
management would be able to protect their planet by adopting eco friendly production
technique (Swanson and et.al 2018).
 While manufacturing of products, there is lot of wastage of resources happen which
create pollution such as air pollution and many more and also negatively affect the
environment. Therefore in order to deal with this management of given company must
use decomposition technique for utilizing their waste. For this they can dump wastage
part of their production underground. By this technique management of company would
be able to utilize the wastage of their products effectively and effectively (Sanders,
2020).
CONCLUSION
On the basis of above essay it has been concluded that effective operations logistics and
supply chain management play a very important role in overall success and profitability of an
organisation. By effective supply chain management in organisation, management of company is
able to deliver products to customer in timely manner without any delay. In this essay it has been
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discussed various ways through which operation functions department of organisation support
the market where given firm operate. Moreover it has also been discussed manufacturing process
of an organisation which given form use for production of their products. Next to it delivery
system infrastructure of company has also been discussed. Moreover a relevant recommendation
has also been given by using triple bottom line model.
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REFERENCES
Books and journals
Russell, R.S. and Taylor, B.W., 2019. Operations and supply chain management. John Wiley &
Sons.
Schönsleben, P., 2018. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Wamba, S.F., Gunasekaran, A., Dubey, R. and Ngai, E.W., 2018. Big data analytics in
operations and supply chain management. Annals of Operations Research, 270(1),
pp.1-4.
Queiroz, M.M., Fosso Wamba, S., De Bourmont, M. and Telles, R., 2021. Blockchain adoption
in operations and supply chain management: empirical evidence from an emerging
economy. International Journal of Production Research, 59(20), pp.6087-6103.
Caiado, R.G.G., Scavarda, L.F., Gavião, L.O., Ivson, P., de Mattos Nascimento, D.L. and Garza-
Reyes, J.A., 2021. A fuzzy rule-based industry 4.0 maturity model for operations and
supply chain management. International Journal of Production Economics, 231,
p.107883.
Helo, P. and Hao, Y., 2019. Blockchains in operations and supply chains: A model and reference
implementation. Computers & Industrial Engineering, 136, pp.242-251.
Pagell, M., 2021. Replication without repeating ourselves: Addressing the replication crisis in
operations and supply chain management research. Journal of Operations
Management, 67(1), pp.105-115.
Behl, A. and Dutta, P., 2019. Humanitarian supply chain management: a thematic literature
review and future directions of research. Annals of Operations Research, 283(1),
pp.1001-1044.
Swanson, D., Goel, L., Francisco, K. and Stock, J., 2018. An analysis of supply chain
management research by topic. Supply Chain Management: An International Journal.
Sanders, N.R., 2020. Supply chain management: A global perspective. John Wiley & Sons.
A Look Inside Tesla’s Fremont Automotive Factory,2021.[online]. Available
at:<https://cleantechnica.com/2019/03/31/a-look-inside-teslas-fremont-automotive-factory-
cleantechnica-exclusive/>
Support, 2021.[online]. Available at:<https://www.tesla.com/support/taking-delivery>
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