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Wow so just like all the outsourcing nonsense that first started in the IT industry (and failed) and then crept into all the other industries (and are subsequen
by nebula8804 4y ago
Wow so just like all the outsourcing nonsense that first started in the IT industry (and failed) and then crept into all the other industries (and are subsequently failing now) it was all done by stupid MBAs who couldn't think ahead past one quarter. The way that you explained the phenomenon makes me think that there is a business opportunity to capture customers by providing world class service.
Auto companies are relearning why it does not make sense to outsource anything that a customer sees or touches. That is your profound knowledge and any supplier that is incentivized to maximize cost per unit will not care one bit about providing anything more that the minimum needed to get the contract. The customer suffers until one automaker breaks the mold and start to differentiate themselves by building in house and having a tighter feedback loop to provide the best quality.
Here's how it went down at Tesla straight from the horse's mouth. I remember the skeptics thought he was crazy for bringing this in house but it seems to have worked out.
[1]: https://youtu.be/YAtLTLiqNwg?t=357 https://youtu.be/YAtLTLiqNwg?t=357