Other key manufacturing suppliers for Tesla’s include AGC Automotive (windshields), Brembo (brakes), Fisher Dynamics (power seats), Inteva Products (instrument panel), Modine Manufacturing Co. (battery chiller), Sika (acoustic dampers), Stabilus (liftgate gas spring), and ZF Lenksysteme (power steering mechanism) amongst others (Maverick, 2019). Along with the increased production, Tesla has improved upon is supply chain network in order to reduce costs and get the right parts, at the right place, at the right time. (2017, August 26). Tesla Motors is one of the famous electronic vehicle manufacturer company, which has occupied a great position in the United States Car Market. Case Study: Tesla Motor Inc 129 Downloads 13 Pages / 3,235 Words Add in library Click this icon and make it bookmark in your library to refer it later. (good) Tesla Motor Case Study report. Specifically, challenges related to vehicle’s battery design, and manufacturing automation. In cases that deal with huma… We need innovation, but where tend to see the innovation happening is in the traditional OEMs who have the supplier base to leverage.". 2. But Tesla struggles to meet deadlines and frequently delivers flawed vehicles, and profitability remains elusive. Between January and September 2017, Tesla led the pack by selling 73,227 EVs, followed by Chinese automaker BYD, selling 69,094. Slideshow Not only that, but Tesla's software design is state-of-the-art: the fact that Tesla can update vehicle software over-the-air (OTA) as if it were Apple updating an iPhone is unprecedented. Many use Tesla's failings to argue that the company shouldn't be followed as an innovator or even as a true automaker. In 2018, the industry revenues for Tesla were $4.5 billion in Q1, compared to $7.2 in the fourth quarter (Korosec, 2019). In today’s market, automobiles represent the largest manufacturing industry in the United States with manufacturers and suppliers in the automobile industry generating billions of dollars each year. In 2018, the industry revenues for Tesla were $4.5 billion in Q1, compared to $7.2 in the fourth quarter (Korosec, 2019). Moreover, Tesla’s products are relatively more expensive than competing cars, especially those that have internal combustion engines. Retrieved from, Maerick, J.B. (2019). The rival firms also consists of adaptive supply chain networks. To explain the situation, this case presents the entire Tesla Model 3 supply chain in detail, highlighting issues like product design, suppliers, manufacturing, marketing and sales, service, and charging infrastructure. As a production plan and goal for the company, Tesla’s CEO, Elon Musk, envisions the company building 500,000 cars per year by 2018, and one million cars per year by 2020 (Muoio, 2017). This is made of 3-phase AC induction motor and an output of 794 bhp combining both front and rear motors. Tesla Motors is one of the famous electronic vehicle manufacturer company, which has occupied a great position in the United States Car Market. "An OEM "The electronics innovation trend with the industry has been going on for a while, but I think it’s accelerating," Loh said. 11 Case Studies of Supermarkets and Food Supply Chains in Low-Income Areas of the Northeast, and cross-case comparisons. Tesla's Autopilot, which uses AI to drive a Tesla vehicle for you with some minor assistance, has been the subject of hot debate, with some consumers misusing the technology and crashing the cars while using Autopilot. struggling to get to scale and get its model to pay off," Anderson said. p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 11.0px 'Helvetica Neue'; color: #000000; -webkit-text-stroke: #000000} Twitter. U.S. Auto Sales Brand Rankings- September 2018 YTD. As a result, Tesla would greatly benefit from a more efficient supply chain to meet production demands and yield expected profits. In short, Tesla owns it all. Then there's the AV discussion. The company Tesla plans to expands its business and increase its overall revenue generation. Case Study : Tesla 's New Product; Case Study : Tesla 's New Product. But if Tesla can keep investors hooked on its vision of a future filled with electric cars, it may just be a matter of time before it becomes an industry bedrock. Case Study of Tesla 1 Case Study of Tesla By: Sachin Sathish Maastricht School of Management Individual Research work submitted for: Responsible Supply Chain Management - Ed Weenk f Case Study of Tesla 2 Executive Summary This report provides an evaluation and analysis of the supply chain configuration of Tesla, the challenges … Furthermore, supply chain coordination strategies, product flows, information flows, and risks mitigation are also critical factors Tesla must consider when selecting suppliers. A Strategic Analysis of Dick’s Sporting Goods Epsy dipostions College Algebra 205138440 caderno de fichas matematica 3 ano 1609302006 25 Chapter 12 Mini Case - Mini case Chapter 9 In Class - Case study A Strategic Analysis of Dick’s Sporting Goods Epsy dipostions College Algebra 205138440 caderno de fichas matematica 3 ano 1609302006 25 Chapter 12 Mini Case - Mini case Chapter 9 In Class - Case study Radio Flyer wanted to develop a global supply chain solution to successfully introduce the Tesla Model S for Kids to retailers and families across Europe. span.s1 {font-kerning: none} Explore the case studies below to learn how we are helping clients imagine, deliver, and run more efficient, profitable supply chain operations View our services Learn how IoT solutions are connecting digital and physical worlds in innovative ways—with breakthrough business results. In Quarter 1 of 2013 they saved $30 million in cash and reduced logistics expense through better supply chain management alone. Assignment writing service provided by MyAssignmenthelp. This is a five-door liftback body styled sedan. Such an approach affords Tesla leverage in the supply chain, more direct control over the finished product, and ultimately more control over the user experience. The Sedan Model is more expensive and impressive than ever. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Ansoff Matrix and McKinsey 7S Model on Tesla. In this strategic decision area, operations managers focus on adequate supply and an effective and efficient supply chain. Here’s everything Tesla is working on right now. In recent news, Tesla Motors is doing well compared to other car manufacturing companies. "The big three better be looking over their shoulder. "Tesla is School shouldn't start later essay, case study talent management at the adv corporation advantages and disadvantages of smoking cigarettes essay. Along with the increased production, Tesla has improved upon is supply chain network in order to reduce costs and get the right parts, at the right place, at the right time. August 2018; DOI: 10.13140/RG.2.2 ... value chain of mobile network operator and its partners in the supply chain of MFS. Tesla Model 3 Case Study: The 3 model of Tesla is also known as Blue Star. Other automakers are following Tesla's lead and looking to create semi-autonomous or fully AVs, and that has sparked contention in Washington as lawmakers try to reconcile safety concerns with innovation-hungry automakers. Typically, when selecting suppliers, third-party logistics (3PL) firms, distribution centers, and retail stores, considerations are given to cost, location, quality and value, however, Tesla has done business a little different without full success. Then there's the funding problem. Tesla's supply chain is still in the development phase, and right now Tesla doesn't have the capital and supplier relationships that other big automakers have. " on 1 tesla case study ‘tesla’s mission is to accelerate the world’s transition to sustainable energy’. This is closer to Apple’s design-and-build model than it is to other automakers. Retrieved from, Muoio, D. (2017, September 09). The bureau doesn't have data on the number of EVs sold until 2011, which was 9,750. *You can also browse our support articles here >, https://techcrunch.com/2019/04/24/tesla-reports-702-million-loss-in-first-quarter/?renderMode=ie11, https://www.investopedia.com/ask/answers/052815/who-are-teslas-tsla-main-suppliers.asp, http://www.goodcarbadcar.net/2018/10/u-s-auto-sales-brand-rankings-september-2018-ytd/, http://www.businessinsider.com/tesla-projects-long-term-plans-2017-9#tesla-wants-to-build-500000-cars-per-year-by-2018-and-one-million-cars-per-year-by-2020-1, https://www.wealthdaily.com/articles/5-major-risks-facing-tesla-nasdaq-tsla-shareholders-today/8852, Developing a Business or a Career in Business, Autoalliance.org. This SWOT analysis also determines that the company’s limited supply chain is a related weakness that prevents the company from rapidly expanding in such markets. Tesla’s approach to the automotive manufacturing and sales process has revolutionized the automotive industry. Supply chain management: Tesla is building a corporate infrastructure to handle all aspects of production. That's essentially the story of the company's struggle: Tesla tries to scale high and fast, but gets bogged down by a faulty supply chain. "Typically an OEM will have a supplier panel or a collection of a few suppliers, anywhere from 2-5 suppliers they source from for that commodity," Loh said. Automakers are starting to explore and include artificial intelligence (AI) in their cars, and now major automakers and U.S. Brian Loh, a partner at McKinsey&Company;, said innovation is at an "all-time high" in the auto industry right now, which is significant because historically, the auto industry is very slow to evolve. What Tesla has proved is that it takes a tremendous amount of funding, grit and hard work, star power and a strong vision in order to succeed in the auto industry and launch a radical new product — especially if you're trying to do both those things at the same time. Tesla has a global supply chain aimed at supporting its manufacturing processes. In 2003, Tesla was incorporated as a business that focused on designing, developing, manufacturing and selling fully electric vehicles. Such an approach affords Tesla leverage in the supply chain, more direct control over the finished product, and ultimately more control over the user experience. With the help of this, they can focus on managing the supply of raw material within the organisational premises. There's so much change happening that the automakers are trying to make sure they’re as successful in the next era as they were in the past," Loh said. In October 2016, Radio Flyer’s European supply chain was in operation, with a few cars shipping per week. For better or worse, Tesla makes its own batteries, so it's heavily dependent on its own sources," said Michelle Anderson, a partner with Boston Consulting Group. The techniques the brand uses to compete in an … Tesla is vertically integrating - or possibly taking an Apple/Foxconn funded manufacturing and supply chain partnership approach. In Tesla’s case, Musk took personal ownership over the decision to select the system integration subcontractor that’s behind the latest delays – instead of blaming his Supply Chain staff. "If that went down, batteries are heavily commoditized, so there wouldn’t be too much of a hiccup, but there would be some down time.". While the supply chain has not yet been perfected, Tesla’s innovation and bold approach to traditional manufacturing continue to differentiate them from the competition. Who are Tesla’s (TSLA) Main Suppliers? "In some cases, a vehicle program might be really big and the OEM might say, I’m not going to pay the supplier any upfront funding, you need to handle that cost yourself because you’ll get a big volume down the road," Loh said. "If that went down, batteries are heavily commoditized, so there wouldn’t be … That may instill some hope in investors, but the fact remains that Tesla still has inroads to make as a trusted automaker. When selling a product composed of roughly 10,000 individual parts, you need to have 100% faith in your supply chain and production line. Tesla delivers cars riddled with defects. Tesla's supply chain is it's Achilles' Heel, For better or worse, Tesla makes its own batteries, so it's heavily dependent on its own sources," said Michelle Anderson, a partner with Boston Consulting Group. Watch Queue Queue In Quarter 1 of 2013 they saved $30 million in cash and reduced logistics expense through better supply chain management alone. "If an OEM only uses 20% of a supplier’s capacity, it’ll likely cost them more. Every case study has a main theme or concept that it illustrates. Not only does the sourcing of cobalt create risks of spikes in pricing, it also creates gaps in supply and production. At the top of the U.S. automaker rankings based on sales for 2018, is General Motors with 2,150,320 followed by Toyota’s 1,920,026, Ford Motor Company, FCA, Nissan Motor Co., Honda, Hyundai Kia Auto Group, Subaru Co., Volkswagen, BMW, and Daimler (Matthews, 2018). With any new product introduction there will be risks. "If that went down, batteries are heavily commoditized, so there wouldn’t be too much of a hiccup, but there would be some down time. Course. Tesla shows how crucial it is for an automaker — or any company, really — to have all the kinks worked out of its supply chain before pursuing such big goals, like skipping the prototype stage and rushing to produce 5,000 cars a week right away, which is how Tesla approached the Model 3. "For better or worse, Tesla makes its own batteries, so it's heavily dependent on its own sources," said Michelle Anderson, a partner with Boston Consulting Group. Utilized completely. CHEP holds the Battery in Focus Expert Group to create supply chain solutions for Electric V... 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