Implications of Tesla's Supply Chain Management Model for Businesses

Tesla has greatly reduced costs with its own unique supply chain management model. For Chinese automobile enterprises, if they do not follow their supply chain management model, it will inevitably lead to the decline of their own competitiveness; if they do, it means that they need to remodel the existing supply chain and increase the proportion of vertical procurement. Regardless of the choice, it has prompted a series of changes in China's automobile industry, which need to be given high attention. This paper introduces the supply chain background of automobile enterprises, after which it addresses Tesla's supply chain management mode, the impact of Tesla's supply chain on Chinese automobile enterprises, and the strategy of applying supply chain concepts in China's automobile industry, respectively. This paper utilizes the method of literature research. This thesis finds that Tesla's supply chain management model helps its company to develop in terms of industrial layout and enterprise competitiveness, so this advanced supply chain management model is worthy of Chinese enterprises' reference and learning.