MMOG/LE: Materials Management Operations Guidelines/Logistics Evaluation

MMOG/LE is a single set of global guidelines for materials management which was created by the Automotive Industry Action Group (AIAG) and Odette International Limited.

What do the OEM’s say about it ?

MMOG/LE is a performance improvement tool in the form of a self-assessment questionnaire. It is designed improve inventory management and delivery performance.

The MMOG/LE best practices guide manufacturers in assessing, improving and benchmarking materials management and logistics processes. During the self-assessment process, manufacturers will uncover critical areas where automation and systems can significantly increase plant efficiency and streamline processes. MMOG/LE ensures information flow follows material flow.

It’s advantages are seen as:-

• It’s a comprehensive assessment of materials planning and logistics performance and capability. It also addresses customer demands for shorter lead times and more reliable delivery.
• Implements a faster, more flexible and more efficient flow of information and products throughout all tiers of the supply chain.
• It’s an evaluation document – a single common material planning and logistics evaluation tool.

Evaluations are done annually and can be used by both supplier and customer throughout the product life cycle, including the early development phases. It can be used by every partner in the supply chain as a self-assessment, or can be used between business partners as an audit tool.

Who makes use of it?

Thousands of automotive suppliers around the world have used the MMOG/LE self-assessment to improve materials management operations and logistics, some reducing inventory as much as 50 per cent. Better delivery rating scores and savings on premium freight, obsolescence and administration are just a few of the other gains reported.

Why is it relevant to me?

MMOG/LE is an Automotive Supply Chain initiative – a joint effort of AIAG in America and Odette in Europe. Many automotive suppliers are required or mandated to complete the MMOG/LE self-assessment by their customers.

Last year in particular, key players in the automotive industry started pushing hard to ensure suppliers comply with the use of MMOG/LE. These include: Chrysler, Ford, PSA Peugeot Citroen, Renault, Volvo Car, Volvo /group. It is mandatory for Ford and Volvo.

What do I have to do apart from fill in the self-assessment?

It’s much more than filling in an assessment form. It requires acting on the areas in which you find deficiencies. From an IT point of view specifically, it requires extensive integration efforts and you should be discussing this with your EDI supplier.