The tesla inventory management system and tesla s supply chain strategy has gotten a lot of attention.
Tesla inventory management.
By tying up fewer resources into storing inventory tesla is able to redirect capital to continue growing and refining other areas of their business.
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This is an impressive achievement considering sales in the same.
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According to their may 2013 form 8 k better inventory management contributed over 30 million in cash and reduced logistic costs.
On the other hand for high productivity and minimized inventory costs tesla s operations management approach involves just in time inventory for some materials.
The firm markets its products by strategic positioning itself along major highways and in the locations that people frequently visiting.
The good comes from the revolutionary vision that elon musk has for his company and the possibilities of what a full on vertically integrated supply chain can look like the bad comes from tesla s inability to meet their own predictions.
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Overall tesla inventory management has steadily improved as seen from some of the improving ratio discussed above.
Also tesla s total inventory with respect to revenue was more than twice of that of gm for the 1q 2020 quarter which means tesla needed twice the inventory to generate the same sales.
Some of it good and unfortunately some of it bad.
Inventory management is a significant challenge that is being faced by many automakers and tesla is not an exception to this.
For example managers require that inventory holding does not affect the quality of materials used for the company s electric vehicles.
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Https ts la erik1286 what happened to the inventory listings.