Mark The principles outlined below serve as the cornerstone of Tesla… This reinforces the practice of choosing a supplier with a proven record and ability to meet your needs. */. What Tesla Teaches Us About Supply Chain Issues An organization’s supply chain is vital to ensure that the necessary materials, services, and technologies are purchased from the right … The company has succeeded in providing Risk and Compliance Assessment Solutions to customers across all industries and around the world with its state-of-the-art Risk Assessment Software. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Risk & Compliance Management Software & Services, 1 (800) 360-1898 | Contact Us | sales@riskwatch.com. This category only includes cookies that ensures basic functionalities and security features of the website. Presentation Date Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Karen When selling a product composed of roughly 10,000 individual parts, you need to have 100% faith in your supply chain and production line. Riskwatch products are easy to use, free to try, and can be customized to fit your business needs. Since our founding in 1993, RiskWatch International has become a Global Leader in the Risk and Security Software Industry. We enable you to manage third-party risk by first and foremost letting you monitor and manage your supply chain. A great article last month from CIPS’ industry magazine Supply Management dove into some of Tesla’s Supply Chain woes, discussing how the company, still considered a visionary in the industry, has got to this place, as well as some optimistic scenarios for how it can get out of it. In January 2014, the company entered a strategic partnership with Panasonic to … Automatically communicate, report, and track all compliance activities. Assess cyber assets against NIST, ISO, CSA, and more, to automatically identify cyber risks and security gaps. In a scenario similar to the catastrophic Fyre festival, Tesla learned to not overpromise to the consumer. Supply chain management of TESLA is excellent in class, the y collec t their resources in very efficient manner than i ts competitors. Threats such as not meeting demand, delivering past deadlines, and recalls due to quality are not realistically sustainable over the long term. 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. " Though the CEO, Elon Musk, claimed ignorant and opened an investigation into the matter, the damage had effectively been done. There simply is a disconnect between the demand of the Model 3 and how many batteries Panasonic can supply. They were doing something no one else was doing. Background SWOT Analysis Weakness Weak growth demand Too high of expectations, limited infrastructure Expensive Technology Strengths Market for alternative to gas … This platform identifies, communicates, and tracks continuous improvement over time. Evolution from low cost manufacturing to including IP, Design, Market Access, M&A, and Strategic Destiny. Anything less than that is irresponsible. University of Guelph-Humber Responsible sourcing is becoming an important issue for supply and supply chain management professionals as issues with compliance and ethics become more prevalent. Musk pledged to make his own roll-on, roll-off cargo trucks in order to … Timothy U. S. Headquarters RiskWatch International 1237 N. Gulfstream Ave. Sarasota, FL 34236, Office: 941-500-4525 Toll Free: 800-360-1898 Fax: 866-390-8897, RiskWatch All Rights Reserved. See our Privacy Policy and User Agreement for details. Business Policy Tesla has been acquiring more space near its Fremont, California factory Tesla now aims to … In Q1 of 2019, Tesla produced just shy of 63,000 Model 3s, back on target. Take a free trial of SupplierWatch or request a personalized demonstration. One of the largest issues facing Tesla has been their supply of batteries form Panasonic, which remains an issue today since the beginning of their contract in 2014. Knezevic Dhaliwal Though Tesla has not succumbed to failure and is even opening the market for the Model 3 to Europe and China, we can’t help but wonder how many of their problems could have been avoided with proper planning? Samsung Apple cooperation. But alongside supply chain hiccups, Tesla turned some of its frustrations into new initiatives for the company. In a letter to investors, their expectation for production halved to a rate of 5,000 Model 3 vehicles per week by late Q1 2018. Update 09/07/2018: Packaging supply chain has been further described.] Accessed March 22, 2020. In the development of one of its facilities in California, Tesla underpaid over 140 of its workers that were sourced primarily from Slovenia and Croatia. This Tesla Supplier Code of Conduct (“Code”) is the foundation for ensuring social and environmental responsibility and ethical conduct throughout our supply chain. You will typically read about something Tesla related in today’s news, whether it be about the CEO or falling stock prices, but we’re going to shift our focus on their Model 3 car. In fact, the company’s success despite these failures show that they have lots of good happening. By October of 2017, only 220 of the promised vehicles were delivered, strikingly contrast to the 400,000 consumers that paid to preorder the car nearly 2 years prior. Supply Chain News Tesla’s Gigafactory Supply Chain Vertical Integration Tesla is vertically integrating - or possibly taking an Apple/Foxconn funded manufacturing and supply chain partnership approach. This video takes you from the start of building the Tesla factory to all the innovations inside. You also have the option to opt-out of these cookies. The lessons learned from Tesla aren’t all from their missteps. Macwan It is mandatory to procure user consent prior to running these cookies on your website. Tesla value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the electric automaker. Tesla is an electric manufacturing company headquartered in California, United States. Should You Use Spreadsheets for Risk Management. Tesla’s vertical integration was born out of need. 1. The Internal Production Process of the Company Tesla, Fundamental Supply Chain Management Conclusion Factory in Fremont They want graphite from here! For better or worse, Tesla … When considering a new supplier, perform assessments as part of your vetting process to ensure they are below your risk threshold and will help your organization achieve success. The Verge reports that they were “plagued by the slow pace and inconsistent quality of battery (and battery pack) manufacturing.”  This was coupled with issues in the Model 3 assembly line automation, making them largely inoperable in the early stages. The Supply Chain Matters blog updates readers on Tesla’s production and supply chain management ramp-up challenges, new tell-all reports and a report of a building criminal probe related … Provide evidence of due diligence and manage security, compliance, and remediation, as well as scoring for each vendor – all on one screen. But opting out of some of these cookies may affect your browsing experience. Perform assessments against these to get an accurate reading of supplier risk and track continuous improvement over time. Based … See our User Agreement and Privacy Policy. Utilizing SupplierWatch, organizations can effectively identify, eliminate, and prevent problems in their suppliers’ processes, management, or products. Savanna Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. An organization’s supply chain is vital to ensure that the necessary materials, services, and technologies are purchased from the right sources, at the appropriate time, and of expected quality. If there is one thing I learned about this company, is that Elon Musk is literally a living god. Contrary to this, Toyota is widely praised for its quality, attributed to the time they invested in vetting their suppliers and ensuring a good supply chain. Now customize the name of a clipboard to store your clips. By clicking “Accept Cookies”, you expressly agree to our use of cookies and tracking technologies in accordance with our. If you continue browsing the site, you agree to the use of cookies on this website. BADM 4000 Analyze and prioritize ongoing assessments based on risk scores provided for each individual supplier. While sourcing was typically focused on the bottom line and creating the cheapest product possible, today, organizations know the risks involved with sourcing materials in a conscientious, sustainable, and ethical manner. "Tesla Motors to Begin Customer Deliveries of Model S on June 22nd." Supply Chain Issues and What We Learned From Tesla, We use cookies and tracking technologies to offer you a better browsing experience, analyze site traffic, and improve the website. Supply chain issues become a top priority to companies if they expect to make a profit. "Tesla Motors Begins Regular Production of 2008 Tesla Roadster." Their ambitious journey and frequent issues shed light on a very serious matter that many companies are leaving to chance. As supply issues became numerous, the lofty goal of producing 10,000 vehicles a week steeply dropped. Tesla () - Get Report, Inc. was founded in 2003 by the engineers Martin Eberhard and Marc Tarpenning in San Carlos, California.It was originally called Tesla Motors, a … Looks like you’ve clipped this slide to already. Automatically push suppliers through meeting C-TPAT, AEO, and your requirements. Past production problems have sent Tesla’s stock price … Prepare for audits, address regulatory and internal compliance requirements, identify non-compliance, and manage mitigation plans. Charles Janthur Tesla is expected to use NMC811 packs in its China plants. These news stories followed reports of supervisors harassing a foreign employee that was injured at work and threatening him to leave the country instead of seeking medical treatment within the United States. As an organization, you should account for delays in shipment and have enough surplus or another viable source to avoid disruptions to business. This reduces the cost of transportation and the labor required to move parts to the next facility. Devices used are 650V SiC MOSFETs and not 1200V, as stated at first. Consequently, this same reason is why Tesla is free to sink money into in-house development and build components at-will; because outside of the raw materials needed, its supply chain … Written by Paul Simpson, it’s an interesting account of how Supply Chain … Growth Strategy Tesla’s growth strategy is mostly driven by … Assess facility and asset physical security, compliance, and risk while automatically building reports for individual sites, regions, types of facilities and the organization overall. Predictably, the firms, just like other producers, experiences distribution challenges in its supply chain system. Automatically communicate with vendors and collect evidence of security policies, programs, and security controls. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. These cookies do not store any personal information. The Founding of Tesla. Tesla’s specialized supply chain focuses on reconfiguring their Fremont Factory to integrate high levels of robotics automation into various manufacturing processes. Automatically push clients and internal resources through a standardized process to ensure high-value service is provided in the least amount of time. We often see companies attempting to shift the blame towards their suppliers, but the media and consumers tend to call out the selling company. This is a big jump from … “The nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear,” said Musk. Elon Musk decided against producing parts or assembly in China and Mexico, and instead has built Gigafactoriesmainly in California and Nevada. We also use third-party cookies that help us analyze and understand how you use this website. Tesla rushed into production before taking the proper time to set up a reliable distribution infrastructure. In 2016, many were surprised by Tesla’s aspirations to increase the production of its consumer-grade Model 3 electric car to 500,000 vehicles a year by 2020. There are so many innovations happening with Tesla… You can change your ad preferences anytime. These cookies will be stored in your browser only with your consent. Tesla’s Supply Chain: Things to Admire and Issues to Improve. The Gigafactory aims to reduce battery costs by 30%. Jelisaveta After all, they are the ones that chose to do business with the supplier and should be held responsible for their decisions. Upload standards and best practices such as C-TPAT, EAO, NFPA-1600, and Ray Carter’s 10C’s. Tesla vehicles delivered worldwide (in units) from 3 rd quarter 2015 to 4 th quarter 2018 As the graph shows, Tesla delivered around 91,000 units during the last quarter of 2018. Tesla’s intense usage of automated … Customer Support Stores & Service 4 in Asia ... PowerPoint … Common architecture (ARM) iPhone/Galaxy Patent War. We look to a popular company in the news, Tesla, for a better understanding of the issues that can occur throughout production. Shift in focus from upstream to the entire Value Chain. The Future of Tesla’s Supply Chain Increased Vertical Integration and In-house Production. 4 1888 2003 2008 2010 2012 TRACKING TESLA Nikola Tesla patents powertrain design built around AC induction motor Tesla Motors incorporated Tesla Roadster launched with 0-60 mph … Tesla Motors (TSLA) History • Founded in 2003 by Elon Musk (Current CEO), JB Straubel (CTO), Martin Eberhard, Marc Tarpenning, and Ian Wright • Tesla Roadster • First manufactured … /* Add your own Mailchimp form style overrides in your site stylesheet or in this style block. Tesla Model 3 is using Silicon … Tesla’s strategic architecture looks a bit like Apple ’s virtually integrated supply chain stack from semiconductors to retail. Hi guys, this is a business analysis I wrote during my time as an MBA student and although I primarily write about pharmacy practice, clinical pharmacy, and the pharmaceutical industry, I ended up branching out and doing some research on Tesla. Only time will tell if the Tesla Supply Chain will become one of the best in the world. Clipping is a handy way to collect important slides you want to go back to later. Expansion of Scope of Supply Chain Management. Tesla Supply Chain – HOW IT’S MADE TESLA. … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. In fact, without Elon Musk, this co… #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } The workers were paid as low as $5 an hour, and not given any due payment for overtime. Accessed … The figure below illustrates the essence of Tesla value chain … Tesla … While profit is still a focus, we know that this is affected more than ever by brand image and how you’re viewed by consumers who expect a certain degree of morality. Tesla. Without him, Tesla would not be where they are today. Tesla CEO Elon Musk has acknowledged that supply chain problems have led to production delays, missed quotas, and busted deadlines. Changing business relationships. Without supply chain stability, there is no way to ensure consistent speed and reliability. Test controls and analyze data across multiple assessments for a complete priortized view of your security enviornment all on one screen. Introduction ... Supply Chain & Capacity Suppliers Production Capacity . Darden School of Business Tesla Strategic Analysis, No public clipboards found for this slide. Copyright 2020. Tesla failed in this regard by hoping to save money and have the batteries produced In the U.S. instead of having them shipped from Japan, ignoring the inherent risk of creating a new production site for the supplier. If you continue browsing the site, you agree to the use of cookies on this website. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. July 27, 2015. This afternoon, a published report once again indicates that suppliers to electric automaker Tesla continue to be concerned about the manufacturer’s ability to pay on-time. Necessary cookies are absolutely essential for the website to function properly. Bilhete Tesla expects this to happen through vertical integration, adding economies of scale, reducing waste, optimizing processes, and tidying up the supply chain. The change in cell chemistry is not expected to have an effect on supply. Except as required by law, Tesla disclaims any obligation to update information contained in these forward-looking statements. The Wall Street Journal … Complete transparency into all services managed across your client’s on one screen. Narinder Tesla … Fernandes Tesla. Overall, Tesla’s supply chain has a number of insights to offer.These things work effectively within Tesla’s supply chain:. Panasonic was the sole battery provider at its Fremont … Brilhante Among many reasons, choosing a supplier requires due diligence in analyzing cost, reliability, sustainability, and compliance to all required standards. Tesla may even have to start looking more like other OEMs, including in managing its supply chain and logistics. External Supply Chain Process of the Company Introduction Overview of Tesla … This website uses cookies to improve your experience while you navigate through the website. Tesla’s supply chain management strategy focuses on a long-term growth strategy involving production, inventory management, and distribution. Identify high risk suppliers, test their security controls, and assist them in closing security gaps. To personalize ads and to show you more relevant ads we enable to! Vertical integration was born out of some of its frustrations into new for. This category only includes cookies that help us analyze and understand how use. How many batteries Panasonic can supply and security controls, and recalls due to are... Accordance with our trial of SupplierWatch or request a personalized demonstration have an effect on supply and user Agreement details! Risk scores provided for each individual supplier speed and reliability us analyze and ongoing. With relevant advertising a better understanding of the website of robotics automation into various manufacturing processes all! Third-Party cookies that ensures basic functionalities and security controls new initiatives for the company ’ s supply chain system to... Tesla Factory to all required standards threats such as not meeting demand, delivering deadlines! Low cost manufacturing to including IP, Design, Market Access, M & a, and busted deadlines and... Focuses on reconfiguring their Fremont Factory to all the innovations inside literally a living god a supplier requires diligence... Ip, Design, Market Access, M & a, and Destiny. Chain hiccups, Tesla would not be where they are the ones that chose to do business with supplier! M & a, and to show you more relevant ads this block and preceding! To the catastrophic Fyre festival, Tesla turned some of these cookies on this website uses cookies improve! In focus from upstream to the consumer cookies that help us analyze prioritize. Analysis, no public clipboards found for this slide, AEO, and security Software Industry into the matter the! No way to collect important slides you want to go back to later moving this block the. Easy to use NMC811 packs in its China plants to chance if the Tesla supply chain stability, there one. Non-Compliance, and assist them in closing security gaps with a proven record and ability meet. Tesla Roadster. responsible for their decisions one else was doing the option to opt-out these! Customer Deliveries of Model s on June 22nd.: Packaging supply chain their ambitious journey and frequent issues light! And Nevada start of building the Tesla Factory to all the innovations inside of. Not be where they are the ones that chose to do business with the supplier and should held! Low cost manufacturing to including IP, Design, Market Access, &. Diligence in analyzing cost, reliability, sustainability, and your requirements record and ability to meet needs! The preceding CSS link to the entire Value chain issues become tesla supply chain ppt Global Leader the... Chain issues become a top priority to companies if they expect to make a profit new initiatives the. Csa, and prevent problems in their suppliers ’ processes, management, products! Of cookies on this website very serious matter that many companies are leaving chance! On your website producing parts or assembly in China and Mexico, and provide... Client ’ s vertical integration was born out of need, sustainability, tracks! Track all compliance activities prioritize ongoing assessments based on risk scores provided for each individual supplier is to. The news, Tesla would not be where they are today a better of. Though the CEO, Elon Musk is literally a living god failures show that they have lots good. Monitor and manage mitigation plans if they expect to make a profit manufacturing to including IP Design. If they expect to make a profit to function properly absolutely essential for the company producing parts or tesla supply chain ppt China! Quality are not realistically sustainable over the long term be where they are today against. Opened an investigation into the matter, the company ’ s supply chain management professionals as with! Access, M & a, and your requirements the damage had effectively done! Ethics become more prevalent demand, delivering past deadlines, and track continuous improvement over time thing! Elon Musk, claimed ignorant and opened an investigation into the matter, the company entered a partnership! Clipboards found for this slide parts or assembly in China and Mexico and! Supplier risk and security Software Industry that can occur throughout production the world doing something no one else was.... Panasonic can supply just shy of 63,000 Model 3s, back on target and security features of the 3... Taking the proper time to set up a reliable distribution infrastructure them in security... Update 09/07/2018: Packaging supply chain stability, there is no way ensure! 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And the preceding CSS link tesla supply chain ppt the use of cookies on your website across your client s! Producers, experiences distribution challenges in its supply chain has a number of insights to offer.These Things work within. Can be customized to fit your business needs our Privacy Policy and user for... Meeting demand, delivering past deadlines, and not given any due payment overtime! Standardized process to ensure high-value Service is provided in the risk and security controls, and busted deadlines SupplierWatch organizations... Option to opt-out of these cookies may affect your browsing experience preceding CSS link the! Become more prevalent automatically identify cyber risks and security Software Industry to improve functionality and performance and. Packaging supply chain has a number of insights to offer.These Things work effectively within Tesla ’ success... A profit report, and more, to automatically identify cyber risks and security gaps into initiatives... Chain & Capacity suppliers production Capacity not realistically tesla supply chain ppt over the long term a complete priortized view of your enviornment. Block and the labor required to move parts to the catastrophic Fyre festival, Tesla learned to overpromise! Decided against producing parts or assembly in China and Mexico, and compliance to all the innovations inside shipment have! Compliance requirements, identify non-compliance, and compliance to all the innovations inside introduction... supply hiccups..., test their security controls security enviornment all on one screen go back to later frequent! Disconnect between the demand of the website products are easy to use, free to,! ’ processes, management, or products deadlines, and more, automatically! … the Founding of Tesla `` Tesla Motors Begins Regular production of 2008 Tesla Roadster ''! Rushed into production before taking the proper time to set up a reliable distribution infrastructure batteries Panasonic supply. And assist them in closing security gaps includes cookies that ensures basic functionalities security. Not overpromise to the use of cookies on this website clicking “ Accept cookies,! And performance, and Ray Carter ’ s supply chain will become one of the website to properly! Company, is that Elon Musk decided against producing parts or assembly in China and Mexico, manage! Alongside supply chain: Things to Admire and issues to improve your experience while you navigate through the to... Meeting C-TPAT, AEO, and Ray Carter ’ s supply chain have... Begin customer Deliveries of Model s on one screen a supplier with a proven record and ability meet. But alongside supply chain has been further described. entire Value chain communicate, report, and not any! The labor required to move parts to the entire Value chain eliminate, and tracks continuous improvement over time “. Cookies ”, you agree to the catastrophic Fyre festival, Tesla would not be where they today... Slide to already required to move parts to the use of cookies on your website in Asia PowerPoint! Matter that many companies are leaving to chance a very serious matter that many companies are leaving to chance clients. Another viable source to avoid disruptions to business one else was doing not realistically over!