MMOG/LE: Improving supply chain delivery performance through buyer- supplier collaboration

Abstract

This article introduces readers to a relatively new self-assessment tool for measuring the readiness and effectiveness of supplier materials management and logistics processes in the automotive industry. The tool, the Material Management Operating Guidelines/Logistics Evaluation (MMOG/ LE), was developed by the Automotive Industry Action Group (AIAG), and Odette International – a European alliance of automotive companies. The article begins with an introduction to the topic of quality and materials management assessment systems. The author’s then report on what they learned about MMOG/LE based on a review of the system and other comparable systems, and based on interviews with OEM’s and tier 1 and 2 auto suppliers that use the system. The article begins with a description of what the MMOG/LE system is, and how it works. The article then has a section comparing MMOG/LE and ISO/TS16949, and then another section comparing MMOG/LE and the SCOR model. The authors then address and comment on various strengths and weaknesses of the MMOG/LE model. Finally, the authors make several recommendations on how the system and processes for managing it could be improved. Overall, the authors find that MMOG/LE is an effective system for improving materials management and logistics performance.