Vertical Integration: Tesla is known for its high level of vertical integration. It manufactures many of its components in-house, including batteries, which is a key differentiator in the electric vehicle market.

Direct Supplier Relationships: Tesla tends to form direct relationships with its key suppliers. This approach reduces reliance on middlemen and aims to ensure a steady supply of critical components.

Innovative Supply Chain Management: Tesla's procurement strategy is tightly integrated with its innovative approach, emphasizing the development of new technologies and materials. They often collaborate closely with suppliers on R&D efforts.

Agility and Adaptation: Tesla is relatively new and smaller in scale compared to traditional automakers like Ford. This allows for greater agility in its supply chain, enabling rapid adaptation to changing market conditions or technological advancements.

Global Sourcing: Tesla sources materials globally and is actively involved in securing raw materials like lithium, crucial for battery production, often investing in suppliers or entering into long-term agreements.

Focus on Sustainability: Tesla's procurement strategy incorporates a strong focus on sustainability, which aligns with its brand as a leader in electric vehicles and renewable energy solutions.

Traditional Supply Chain Model: Ford, with its century-long history, has a more traditional supply chain model. It involves an extensive network of suppliers and less vertical integration compared to Tesla.

Diverse Supplier Base: Ford relies on a vast and diverse supplier base, which helps mitigate risks by not being overly reliant on any single supplier.

Local Sourcing for Local Markets: Ford often sources materials and components locally for its global production facilities to reduce shipping costs and improve supply chain efficiency.

Strategic Partnerships and Joint Ventures: Ford engages in strategic partnerships and joint ventures, especially in international markets, to leverage local expertise and resources.

Cost Focus: Ford's procurement strategy traditionally focuses on cost efficiency, leveraging its large scale to negotiate favorable terms with suppliers.

Adaptation to Electrification: In response to the shift towards electric vehicles, Ford is adapting its procurement strategy, including securing supplies for EV components and batteries, but it follows a more conventional path compared to Tesla's aggressive and innovative approach.

Tesla's procurement strategy is characterized by vertical integration, direct supplier relationships, and a strong focus on innovation and sustainability. In contrast, Ford's strategy is marked by a traditional supply chain model, a diverse supplier base, and a focus on cost efficiency and local sourcing. As the automotive industry evolves, especially with the shift towards electrification, both companies are continually adapting their procurement strategies to maintain competitiveness and meet market demands.