Proposed Solutions For Manufacturing Capacity - 1433 Words

5.1 Proposed Solutions for Manufacturing Capacity a) New Factories: Tesla Motors has to set up a new factory to increase the production capacity, we would recommend them to scout for strategic locations all over the world to help it increase production and reduce cost. It is already in talks with China to setup a factory there as China has a huge import duty on imported cars which kills Teslas market in China. I think they should also have a manufacturing plant in Europe to help cater to the European market where electric cars are already doing well. b) Supplier Relationships: Tesla should build strong relationships with its suppliers as they are here to stay, they should encourage and support them in building high quality futuristic material that they need. In the future set up factories close to its suppliers in order to reduce cost. The current suppliers are those that also cater to other automobile manufactures, like Toyota even Tesla should include them in their manufacturing process and share their visions on growth and give them detailed plans of how much material they will require in the future. They need to build a steady supply chain by including their suppliers into their business model and providing them incentives in order to increase their profit margin. Because they are a new company it is very important for them to find the right partners specially when they are manufacturing cars which require different and technology advanced material to manufacture.Show MoreRelatedBaria Planning Solutions1636 Words   |  7 PagesSarah Hanzlik MBAD506 Dr. Davis March 20, 2012 Baria Planning Solutions The company Baria Planning Solutions is a specialty provider of spend analysis and management services to its customers. 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