Europe's ODETTE International and the US-based Automotive Industries Action group (AIAG) have jointly launched a single set of global guidelines for materials management, under the name "M-7: Global Materials Management Operations Guideline Logistics Evaluation (MMOG/LE)."
The guidelines aim to help suppliers to the auto industry "to reduce the time and work required to determine materials process compliance." "The MMOG/LE guidelines give manufacturers the ability to build supplier development programs that contribute to lean operations," said Andrew Cummins, executive director of AIAG. "The guidelines will help all companies in the supply chain to identify performance gaps and achieve benchmarks that are accepted throughout the industry."
John Canvin, general manager of Odette International added: "By being able to bring together two well-respected and established recommendations into one even more powerful tool for our industry, we have made a significant advancement towards globalization of business practices."
Automotive OEMs and suppliers can use this document for internal
assessments, benchmarking current state best practices, driving continuous improvement, supplier development, evaluating supplier performance and improving supplier performance. MMOG/LE can lead to improvements in shipping and receiving, inventory control, material handling, scheduling, supply systems and document control, said the two organisations in a joint statement.
The statement claimed that suppliers could see up to 85 percent reduction in premium freight costs and an 80 percent reduction in obsolete material. With the potential to decrease needed inventory space, suppliers could reap a 43 percent reduction in inventory carrying costs and a 20 percent reduction in data entry time.
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Official press release
Odette website (EU)
AIAG website (US)