Tesla CEO Elon Musk (2016) has said that to meet the aggressive production goals, Tesla would be dropping suppliers who could not meet the lead time goals. This makes lead time the most important part of any Supplier Contract that Tesla currently enters into. Musk (2016) also went on to say that Tesla will be moving a lot of their outsourced components in house, in order to reduce risk throughout their supply chain. This can be expensive, but if Tesla does choose to move more production in house, it would mean less suppliers. Less suppliers would mean that there would be less suppliers, and consequently less supply contracts. This could reduce some of the supply chain management tasks within Tesla, but it remains to be seen if they will make this
Tesla CEO Elon Musk (2016) has said that to meet the aggressive production goals, Tesla would be dropping suppliers who could not meet the lead time goals. This makes lead time the most important part of any Supplier Contract that Tesla currently enters into. Musk (2016) also went on to say that Tesla will be moving a lot of their outsourced components in house, in order to reduce risk throughout their supply chain. This can be expensive, but if Tesla does choose to move more production in house, it would mean less suppliers. Less suppliers would mean that there would be less suppliers, and consequently less supply contracts. This could reduce some of the supply chain management tasks within Tesla, but it remains to be seen if they will make this