Wednesday, April 29, 2009

Today's News

American Axle & Manufacturing Holdings Shifting Production Work to Mexico
Crain's Detroit Business reported today that American Axle has decided to move production from its plant in Michigan to one of their Mexico facilities. The axle program represents about 85 percent of the work currently being done at the Detroit complex. A spokesperson advised that they are idling and consolidating significant portions of the Detroit manufacturing complex to meet the massive production reductions and changes in the market place that the automotive industry is undergoing and that they will continue to operate portions of the American Axle Detroit manufacturing complex.

The Real Cost of Offshore Outsourcing
CIO ran an article that discusses the topic of how offshoring can lead to customer dissatisfaction and losses in efficiencies and productivity. There are also comments regarding the fact that oftentimes outsourced agents are not trained as well as agents who work internally for an organization, and often lack the tools to do a thorough job for customers. While this may be true proper planning and research on the part of the company offshoring the work can prevent a lot of issues. Bob's book provides a very detailed analysis of the process and ways to navigate through the offshoring venture.

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