Best practices for Materials Management constantly evolve in an effort to increase efficiency and accuracy while reducing costs. The MMOG/LE assessment work group includes representatives from OEMs, suppliers and service providers working to assist manufacturers with implementing these standards. Radley is a participating member of Automotive Industry Action Group (AIAG) with employees serving on committees such as MMOG/LE for over 9 years.
Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE) sets global standards for supply chain management, helps address current issues within the supply chain and provides tools for businesses to evaluate their practices against the global standard. Although developed for the automotive industry, the tools can be used by any manufacturing organization to evaluate the effectiveness and efficiency of their processes. Adhering to the MMOG/LE standards offers multiple benefits to manufacturers:
- Gain control of supply chain processes
- Reduce inventory carrying costs, premium freight, rework, line stoppages, lead times
- Increase inventory visibility
- Reduce supply chain risk
- Supports continuous improvement
- Increase customer satisfaction
- Increase competitiveness
In a recent interview at AIAG’s 2016 Supply Chain Summit, Terry Onica, QAD’s automotive vertical director and a long-time AIAG volunteer, stressed the importance of increased engagement by manufacturers to address supply chain risks. Onica states, “When I go out today a lot through my work with MMOG/LE and work with suppliers, they’re not looking at sub supplier risk as diligently as they can.” As part of her work with AIAG and MMOG/LE, Onica sees two areas for improvement regarding evaluation of sub supplier risk: knowing key information about suppliers including locations, finances and quality performance, and making sure contingency plans include details to address situations that may occur after a disruptive event, but before normal production has resumed. MMOG/LE can help Tier 1 and Tier 2 suppliers with these challenges. “There are tools out there like MMOG/LE that will help Tier 1 suppliers assess the capabilities of the Tier 2 supplier. Are they capable? Is there risk there? And then the Tier 2 supplier can use that same assessment down the supply chain,” she said.
Radley’s platform of EDI, MES and WMS solutions can help you implement MMOG global guidelines to boost productivity, manage risk and realize cost savings for your organization. For more information on MMOG/LE, visit www.aiag.org or www.odette.org.