Design a supply chain strategy for electric vehicle production

• Main Author: Foo, Mao Ren
• Other Authors: Chen Songlin
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2020
• Subjects: Engineering::Mechanical engineering
• Online Access: https://hdl.handle.net/10356/141228
• Institution: Nanyang Technological University

The traditional automobile industry is experiencing drastic changes due to the fast-growing electric vehicle market. Global electric vehicle sales have grown at a rapid rate due to technological advancements, favourable policies, and improvements in support infrastructure such as charging points. Unlike the traditional automobile industry where most manufacturers are focused on cost-effectiveness, the electric vehicle market has an increasing focus on fastpaced innovation and high customer responsiveness. Hence, there is a strong need to revise the traditional automobile supply chain strategy to consider these rising factors. Furthermore, there is a much wider range of manufacturer profiles in the electric vehicle industry. Therefore, there is no “one-size-it-all” supply chain strategy for manufacturers due to the distinct characteristics of different manufacturer profiles. Several crucial gaps between the existing traditional automobile supply chain strategy and the electric vehicle market remain unanswered. As such, this study specifically looks to bridge these gaps. The main objective of this study is to develop a framework to enable an electric vehicle manufacturer to design an optimal supply chain strategy by considering its rate of innovation, level of customer responsiveness, and cost-effectiveness as key factors. In the framework, the rate of innovation, level of customer responsiveness, and cost-effectiveness are of equal importance. The relevant capabilities of the manufacturers and product characteristics should be considered as well. The optimal supply chain strategy will enable manufacturers to achieve the desired balance between fast-paced innovation, high customer responsiveness, and cost-effectiveness which is crucial for an electric vehicle manufacturer to maintain its competitive advantages and excel in an increasingly competitive and dynamic market. This study will also examine the effectiveness and benefits of the proposed framework and supply chain strategies through a detailed case study on Tesla, one of the most successful electric vehicle manufacturers in the world.