BMS510 Logistics & Supply Chain Management: Tesla & SpaceX Report

This report delves into the logistics and supply chain management strategies of Tesla and SpaceX, examining key principles, concepts, and processes within their supply chains. It evaluates the contribution of appropriate strategies, such as inventory management and logistics strategies, to the competitiveness of these businesses. The report also critically assesses problems associated with developing supply chain strategies, proposing solutions based on good practice models. Furthermore, it evaluates the relationships between a better supply chain and various other areas within an organization, highlighting the importance of aligning supply chain strategies with overall business objectives for enhanced performance and market leadership. This analysis offers valuable insights into how effective supply chain management can drive success in the automotive, aerospace, and technology industries.

LOGISTICS AND SUPPLY
CHAIN MANAGEMENT
BMS510

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A- Different principles, concepts and processes of supply chain................................................1
B-The contribution of appropriate strategy in the competitiveness of a business.......................4
C- Critically evaluating problems connected with development of supply chain strategy,
determining solutions supported good practice models...............................................................5
D- To evaluate the different relationships better supply chain and various other areas..............8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management of supply chain and logistics is considered as the area which is connected with
supply and storage of the products of an organization. It involves different procedures of addition
and maintenance of properties. Logistics and supply chain management is much broader than
only managing the logistics. It is defined as the process in which goods are coordinate and
managed in the company.it incorporates the movement of the goods. The main aim of logistics
management is to gain customer satisfaction whereas for supply chain management competitive
advantage matters more in the market. Multiple organizations like suppliers, distributors and
many more are involved in managing the supply chain. It is an advanced version managing the
logistics.( Anca, V., 2019) In today’s world logistics and supply chain management is playing a
very crucial role in day to day business activities. In this report we will discuss on the different
concepts, principles, and processes of supply chain and how an appropriate strategy can improve
the competitive advantage. Here we are talking about one of the most successful American
automotive and aerospace company named “TESLA” and “SpaceX”. This report will also
elaborate on the barriers which are concerned with the development of appropriate strategy also
the interrelationships among different areas and supply chain of an organization.
MAIN BODY
A- Different principles, concepts and processes of supply chain
The logistics and supply chain is the process which involve some steps of getting a
product to the consumer. Movement of goods is also defined as the supply chain management.
This process involve steps like moving and transformation of raw products into final goods and
shipping those final goods to the customers. The individuals involved in supply chain
management are retailers, suppliers, distributors, warehouses and many more. Managing the
supply chain is a very crucial part of business management. It is cost effective and if this part is
good then it reduces the company cost and increases the profitability. Successful supply chain
management ensures that the goods are received by the correct person and make sure consumers'
satisfaction is effectively attained. All the planning, designing, manufacturing and delivering the
product to the customer end comes under supply chain management. (Abdirad, M. and Krishnan,
K., 2021)The aim of managing the supply chain is to gain better recognition in the market and
improving the quality of the product which results in increased sales and cost. There are many

types of supply chain management in any organization. Tesla and spacex also have these types of
supply chain management in their company.
Continuous flow model:
This flow model is in very demand these days and this is traditional model which basically works
for the company which produces the same type of products with very less variations in it. This
model requires no change in the design of the product. (Choi, T.M., 2018)This lack of instability
means supervisors can modernize production and keep constricted control over inventory.to
prevent from bottlenecks this model is used by the managers as they have to reload new raw
materials.
Fast chain model:
This model works according to the trend coming in the market. The companies use this model to
sell the products based on trends that may have limited time period. They need to change their
ideas very frequently while using this type of model in the organization.one of the best example
of fast chain model is fast fashion industry which changes very rapidly and customer buy clothes
according to the trend and fashion.( Nunes, Causer and Ciolkosz, 2020)
Flexible model:
This model is used by the companies which manufacture on seasonal or holiday basis. They
change their production according to the demand of the product .for earning the profit they use
fresh material, accounts and labor costs as well.
The tesla inventory management system has a very strong supply chain and has got very
attention in the market. The main purpose of management of Tesla is to have appropriate supply
chain that has many qualities in itself as the productivity of the company may grow more and
becomes more productive. There are mainly two key success in the vertical integrated supply
chain which are cost and another one is control. Another organization which we are talking about
is spacex founded in 2022 by Elon musk also provides a global supply chain management
solution to the market. From planning to execute the products spacex all are parts of supply chain
management. (Wang, Y., Qin, S. and Zhang, C., 2021)This company also utilize technologies for
supply chain like E2E warehouse management system, vehicle Management system. There are
seven principles of supply chain management and which are as follows. The first principle is to
familiarize supply chain to customer’s needs, modify logistics network is the second principle of
supply chain management, the next one is to support demand preparation across supply chain,

differentiate products according to the customer needs is also one of the important principle of
supply chain management , outsource deliberately , improve information technology that
sustenance multi-level result production and the last one is to assume both amenities and
economic products. The supply chain management have five components to work in an
organization. These are as follows:
Planning:
Planning is the first step involve in supply chain management. Plan and manage all the products
in the organization in a significant manner is very important. When a supply chain is recognised
it is very crucial to determine whether the supply chain is effective, efficient and satisfying
customer needs.
Sourcing:
Choosing sources for developing, planning and delivering the product is required to generate the
product. The sources the examine and monitor the process involved in the supply chain
management .the key processes are ordering , planning , manufacturing , delivering and
accepting payments from the customers.( Craighead, Ketchen Jr and Darby, 2020)
Manufacturing:
Manufacture the product comes under this and quality checking and testing of product is also
done in this step. After testing the package is ready for shipment and scheduled for delivery.
Delivery and logistics:
This involves the movement of product to the right person at the time. Customer satisfaction is
very important part of this action .receiving payments, invoice consumers, dispatching goods all
comes under delivery and logistics.
Returning:
This involves return of products which are unwanted or defective from customer point of view.
Return policy should also be good so as to satisfy customer needs.
All these are the principles and processes involved in supply chain management of an
organization. These steps are used by these two American companies as well for the
management and therefore results in productivity and growth.

B-The contribution of appropriate strategy in the competitiveness of a business
There are many strategies for supply chain management but one of the most efficient one is
inventory management. Inventory is defined as the item or products used for business purpose to
sell to customers for earning profitability.( Cole, Stevenson and Aitken, 2019) The aim of supply
chain management is to track whether the items or products are properly dispatched to the right
person at the right time or not. This also involves what to order and where to store the order. The
steps involved in inventory management are as follows:
 Purchasing inventory: the goods which are ready for sell are purchased and transport to
the vendors and warehouses for the sale purpose.
 Storing inventory: goods and products are stored for further use until they are
required .they are delivered according to the need of the customer.
 Profiting from inventory: the products which are ready for sell is good for profitability.
Final products are shipped to customers and therefore helps in earning profit.
Inventory management is one of the most important part of an organization. There are some key
features of inventory management like tracking of goods, managing the orders, transfer of
products and managing them for increasing their value, reporting and analysing the pattern to
ensure future demands of the customer, producing and dealing purchasing orders and the last one
is the shipping abilities for customer satisfaction. Even there are some of the technologies
through which any organization can transform the inventory management like artificial
intelligence, internet of things as this will provide the location and status of the product, block
chain and quantum computing.( Rajendran, S. and Ravindran, A.R., 2019)if we talk about tesla
then tesla inventory consists of following items: Raw material, work in progress, finished goods
and the last one is service parts. From all these inventories finished goods is the most beneficial
one which makes almost more than half of the other inventory stages. Finished goods is
comprised of following things:
 Vehicle in transport for delivering customer orders.
 Different vehicle available for immediately export products at service centres.
 Used Tesla Automobiles
 Energy loading goods.
Apart from supply chain strategies there are also some logistics strategies in the organization. A
logistic organization is the process of finding the best way of delivering goods or products to the

customer by providing high level of satisfaction to them. A logistics strategy provide a way of
changing the nature in the services provided the customer for transporting their products. There
are many logistics strategies as well. Some of them are as follows .getting the key performance
indicators done which means to take care of customer order cycles, pick to ship cycles and many
more , automation makes everything possible and this is beneficial for logistics as well, choosing
a warehouse system and focusing on customer satisfaction. These strategies are contributing in a
very huge part in the success rate by engaging in real time planning and increasing a collective
supply chain management. (Sodhi and Tang, 2021) Adopting new innovative ideas and solutions
for supply chain management also helps in contributing the competitiveness. Likewise
implementing disorderly technology also helps in the improvement of supply chain management.
To get maximum benefit from the management of the supply chain a management may look
upon the cost drivers and the business impacts as well. An appropriate logistics and supply chain
strategy may be an effective tool for the organization to gain competitive advantage in the
industry. It may help TESLA to identify key issues in the organization structure and manage the
work effectively to decrease the negative influence of the barriers upon company (Abdirad and
Krishnan, 2021). The strategy may be useful for the business to provide better understanding of
the different crucial aspects of the organization in the market. It may have a better influence over
the appropriate organizing of other aspects of the company which are related to the success of the
organization. The company may be able to expand in various new markets by focusing on its
existing strategy and making effective changes in order to gain competitive advantage in the
business. By expanding in the global marketing the organization may be able to increase its
market share in the industry.
C- Critically evaluating problems connected with development of supply chain strategy,
determining solutions supported good practice models.
Supply chain is defined as vast network that help a company to supply or delivery their
products from national to international level (Aslam and et.al., 2021). The process of supply
chain management play important role in the context of business growth as it enables a manager
to manage the flow of services and products, which is quite essential for them to do so,
systematically and appropriately. For purpose of conducting this practice, supply chain
management may contribute to create the best tactic, that is associate some issues along with

positive aspects that may put negative impact on growth and success of an organization such as
Tesla & SpaceX. Utilization of inventory management software is the best supply chain strategy
that organization may take into its consideration. The process of developing this tactic
encompasses some issues and these are;
Political-
During the process of developing supply chain strategy, management in the company
may face the worst challenge, that occur due to political factor. It may lead to decrease the
affectivity of management in the context of increasing or improving supply chain operation
efficiency. Political stability is the best example of political factors that enable administration to
manage everything related to their venture such as supply chain. It may give them chance to
form the tactic in appropriate manner. While political instability affect negatively in form of
decreasing the business effectiveness as people due to this issue may do not get what they want
in the market in form of product or service.
Economic-
Any change related to economic growth and other factors may put direct impact on
strategic planning and development process of supply chain tactic. As the overall process
associated with number is problems such as current one, which lead to decrease the effectiveness
of TESLA related to product delivery that affect negatively upon its brand image and
profitability. As it is quite essential for management to concentrate on this issue, which is
important for them to do that. The success and growth of a company supply chain strategy rely
on economic growth, which is important for manager or leader to take into their consideration.
Social-
Development of supply chain strategy such as utilization of inventory management
software encompasses some major issues or challenges that impact negatively upon TESLA
success and progress in the world of business. The success of overall process is possible when
management may have appropriate information about customers need that aid to develop and
then implement the tactic, but due to inaccessible of these things create the biggest problem for
them. It is essential for them to solve the issue in appropriate manner, by applying and
considering tactics that play significant role in organizational success. Inappropriate information
about customers requirement and inaccessibility of key assets, may lead to decrease management
efficiency related to making supply chain function smoother then ever.

Technical-
Another issue along with above three impact or associated with process of supply chain
strategy is digital transformation. It is a kind of process that drive attention of manager toward
using digital technologies. It may allow them to make possible changes within existing that aid to
create new and alter exiting venture activities. The overall process consume a lot of time and
need some additional valuable resources that is impossible for company to arrange quickly. This
factor may affect negatively in form of increasing the extent of work pressure upon
administration as they may develop plan and take right action to implement specific inventory
management software, which is essential for them to do so.
Legal-
Any modification in the context of regulations and legislations related to supply chain
management affect the process of developing a tactic in the similar term. It may put impact in
form of decreasing effectiveness of management to implement plan and comply with new
regulations, that might be driven manager attention toward making changes within existing
practices and plans.
Ethical-
Another problem associated with formation of supply chain tactic and put pressure on
management to conduct ethical practice such as employee engagement in overall process and
decision-making, which is not possible for them to do on continuous basis, is current one.
Environmental-
It can be said that environmental factor impact supply chain in term of creating
challenges to made strategy that include sustainable items such as resources that put positive
impact on land, water and air.
Sustainability-
Environmental sustainability is the major concern or areas of improvement that create
issue for administration to form tactic and implement the same after considering key concerns of
government and customers related to sustainable environment (Habib and et.al., 2021).
Solutions-
The best way to overcome the adverse impact of first issue is group discussion and team
formation that contribute to resolve problem and provide unpredictable benefits to organization
and the CEO. Team formation is the best technique that apply in the context of first challenge as

it may allow administration to develop effective plan and tactic in order to develop a supply
chain strategy that has been discussed above. By using this solution, firm may gain competitive
benefits in term of increasing profitability, productivity, performance level, even better than last
few years and months more than other companies. It may enable team members to consider
methods of conducting appropriate research for purpose of collecting info about customers wants
and needs. With better plan and tactic they may solve any issue in systematic and appropriate
manner.
The best solution that management in the company may take into their consideration, for
purpose of solving issue is training. This solution may enable manager to train employees and
give them opportunity to develop new knowledge, skills and competencies use in inventory
management software context, that aid to manage supply chain effectively and appropriately. It
may also help to improve and develop new skills among individual candidate that they may
utilize to develop and implement inventory management software tactic in the market place
related to supply chain.
D- To evaluate the different relationships better supply chain and various other areas
Supply chain and logistics management are considered as the important areas which may
explain the flow of good and services of an organization. It helps the business to manage their
financial position and maintain their profitability in the market. TESLA may be able to improve
their productivity by effectively managing its logistics and supply chain. The management of the
co9mpany may be able to prepare effective strategies and enhance their performance in the
industry by having a good command over their logistics and supply chain.
This department may work in coordination with several other areas of the business in
order to achieve the target effectively and increase the productivity of the company. It may be a
useful practice in order to organize these different departments and fulfil the needs of each and
every stage to achieve better results (Kummer and et.al., 2020). The company may be able to
communicate better with their employees and enhance their motivation levels. With the help of
these aspects, the conflicts may get reduced and the organization may achieve better success in
the industry.
The management may be able to understand the major requirements of the departments
with the help of the interrelationship between the logistics and supply chain and the marketing

department. The company may be able to identify the suitable channels and gain competitive
advantage in the industry. The management may be able to prepare effective strategies with the
help of the assistance provided by the other department in order to build better brand image
among the customers. It can be suitable for the business in order to enhance the overall
experience of the customers.
The organization may be able to establish better coordination between these areas and
gain competitive advantage. It may be useful for TESLA in order to conduct expansion into
several countries in order to increase its market share. The company may be able to gain
competitive advantage with the help of properly managing their different department and making
effective changes in their current strategy on order to develop better practices. The company may
identify the important dealers and suppliers with the help of cooperation among these two
departments (Sweeney, Grant and Mangan, 2018). The marketing department may provide the
information about customer preferences to the management which may be crucial for the
business to have a positive impact over the customers. These issues and conflicts may decrease
in the management and the employees may collaboratively work towards achieving the
organizational goals.
The supply chain and logistics function may also be interrelated with the purchasing and
procurement function in order to manage the finances effectively. This function may provide
financial advice to the organization and may be helpful in reducing the losses of the business in
the market. It may be helpful to grab various opportunities in the industry and retain a better
image among the competitors. This department may provide adequate information about the
demand and supply of the products and services in the market which may help the company to
make effective decisions. Different techniques may be used by the departments such as the total
cost ownership etc. in order to effectively operate the crucial functions of the business.
The human resource function may also be interrelated with the supply chain and logistics
function which may be helpful in order to increase the productivity of the organization. The HR
may prepare effective strategies in order to manage the work appropriately and provide better
assistance to the managers in order to manage the production process effectively. It may be
appropriate for the business in order to manage the preferences of the employees and increase
their motivation levels in order to achieve better efficiency (Lai, Sun and Ren, 2018). It may be
useful to manage the staff effectively and retain them in the organization. The HR department

may highly focus on providing better resources to the employees in order top improve their
contribution towards the business activities. It may be useful to enhance the overall productivity
of the company and may give various growth opportunities to the business. The supply of the
products may become effective as the employees might work with more engagement towards the
organizational goals.
CONCLUSION
According to the above report it has been concluded the business have been able to
organize their functions effectively with the help of various supply chain management concepts
and methods. The appropriate management of the supply chain have provided the business with
various development and expansion opportunities. With the help of appropriate strategies the
business have been able to increase its sustainability ion the industry. The organization have
evaluated the key issues which have been useful to manage the risks that may create various
changes in the approach of the business. It has been beneficial for the company to build an
effective image in the market and gain competitive advantage. The organization have gain a
better understanding of different techniques and methods which are useful in managing these
areas and enhancing the performances of different functions.