Operations and Supply Chain Management Tesla Motors

Slack, Chambers and Johnston (2007) identified five factors that are determinants for operations performance objectives such as speed, dependability, flexibility, cost and quality. All of these five factors are close related to customer satisfaction and address the uncertainty factors in the business environment. In such context, the study has found that Tesla motor has the opportunity to improve above mentioned determinants in order to compete in global electric vehicle market. Major competitors for Tesla motor include big players like BMW, Honda, Audi, Nissan and GM. Following recommendations are being proposed for Tesla motor that can help the company to achieve competitive advantage.
Tesla needs to dependency on Japanese supply chain partners and rely more on USA based suppliers in order to decrease lead cycle time. Competitors like BMW and Nissan are also trying to decrease distances in supply chain in order to decrease delivery time and speed up the supply sourcing process.
Unit sales volume of electric vehicles of Tesla motor is low. therefore, company needs to decrease the operational cost in order to retain the profitability margin. Tesla motor needs to deploy concepts of TQM and economies of scale in order to eradicate wastes and non-revenue generating activities throughout the supply chain. Tesla motor needs to work will small group of suppliers who qualify the quality criteria and supply requirements of the company. Contract with old suppliers should be renewed in order to achieve the desired dependability.

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