About MMOG/LE
The MMOG/LE (Global Materials Management Operations Guideline/Logistics Evaluation) is a comprehensive set of business processes related to material management and logistics. It was originally created for the automotive industry but can also be applied in other industries.
The MMOG/LE outlines the most important elements of a materials management system for suppliers of goods and services. As a development tool, it defines the criteria for continuous materials management plans internally, as well as externally.
Authors of the MMOG/LE standard
The document was drawn up in partnership with the Automotive Industry Action Group (AIAG) and Odette. AIAG provides a unique forum for automotive manufacturers, suppliers and dealers to focus on developing collaborative solutions to reduce the cost and complexity of joint ventures involving many partners.
Odette International is an organisation created by automotive companies for the automotive industry. It sets the standards for electronic business communications, technical data exchange and logistics management to interconnect over 4,000 European industrial companies with business partners all over the world. It is made up of national organisations from individual countries.
MMOG/LE in practice
Suppliers that are Odette members can download the original MMOG/LE standard from while non-members can do so for a fee. Benefits achieved include:
- More satisfied customers, more contracts
- Sales doubled in 3 years with no increase in staff
- Business growth without increasing inventory
- Inventory reduction by 17-50%
- Reduced reporting/manual processes
- Documented processes anyone can follow
- Senior management involvement
Version 5 to move into the Cloud
Starting in 2019, the annual MMOG/LE self-assessments will move from Excel spreadsheets and be uploaded into the Cloud. The standard was updated by the MMOG/LE global team consisting of the AIAG, Odette, with QAD as the software supplier as well as OEMs including Volvo Truck, ZF, Ford Otosan (Turkish JV), Continental, GALIA (France), SMMT (UK), VDA (Germany), Ford Motor Company and General Motors.
Version 5 will be important for the industry and will address new best practices in the following areas: IATF 16949, cybersecurity, Industry 4.0, subcontractor risk associated with the transition from internal combustion engines to electrical and autonomous vehicles, and software supplied with the vehicle versus the assembly line.
MMOG/LE
MMOG/LE provides a set of best practices for suppliers to evaluate their performance in order to achieve world leading materials management and logistics with an emphasis on using automation to deliver measurable results. The new version has been revised into two assessments: full and basic.
The full version contains 197 criteria and six chapters designed for OEMs with Tier 1 suppliers, supplier classifications A (those using best practices), B (those with certain unstable or inconsistent processes) and C (those with deficiencies in key areas)..
The basic version contains 103 criteria and six chapters designed for Tier 2 and lower, supplier classifications BA, BB and BC. The tool is used for lower tier suppliers to verify that the key basic supply chain processes are met and provides a way for organisations to gradually migrate to the full assessment. The basic version is used to quickly evaluate business critical areas, for example those in capacity planning and inventory management etc.
The MMOG/LE standard is used by the following:
OEMs: Chrysler, CHN, FAW-VW, Ford, GM, Iveco, Jaguar/Land Rover, PSA, Renault, Tofas Fiat, Volvo Car, Volvo Truck
Tier 1: Autoliv, Benteler, Beru, Bosch, Brose, Continental, Faurecia, Gates, Johnson Controls, Lear, Magna Powertrain, MGI Coutier, Pierburg, Selzer Automotive, SNOP, Valeo, WABCO, ZF
