MMOG/LE (Global Materials Management Operations Guideline / Logistics Evaluation) is an extensive collection of enterprise practices and procedures related to the management of material and logistics. While originally created for the automotive industry, the guideline can also serve for other sectors of industry.
MMOG/LE outlines the most critical matters of material management for suppliers of goods and services. As a development tool the guideline establishes criteria for plans of continual material management improvement, both internally and externally.
Authors of the MMOG/LE benchmark
The organizations AIAG and Odette collaborated on the creation of the document. The Automotive Industry Action Group (AIAG) created for automotive manufacturers, suppliers, and traders a unique forum aimed at cooperation to develop solutions that would help reduce costs and simplify joint business operations between many partners. Odette International is an organization that was formed by automotive industry companies specifically for the automotive industry. The organization establishes standards for e-business communications, the exchange of technical data and logistics management, connecting more than 4,000 European motor industry companies with trading partners throughout the world. Odette International is composed of individual organizations from individual countries.
Odette Logistics Evaluation: OLE
The project was initiated by the Swedish organization in 1997. At the Berlin meeting it was then introduced to the Odette Logistic Functional Committee, which approved the project. Later in the autumn of 1997 a working group was formed with English, French, German, Spanish, and Swedish members. The project was launched and approved by the Odette Logistic Functional Community. The results were presented in Berlin in 1997.
Several OEM organizations emphasized the need for unified evaluation for suppliers in logistics as a tool for reducing costs in supplier-customer relationships.
The goal of Odette was to create an evaluation system that could be broadly applied for the specific needs of the automotive industry.
Material was compiled in England and named Odette Logistic Evaluation; nevertheless, various national organizations use other names in translation. These include, for example: Odette logistik bedömning ( OLB) – Sweden; EVALOG, VDA: Odette Logistic Evaluation – Gallia; Logistik-Prozessanalyse - Germany.
Material management benchmark: MMOG
The pilot project was a two-year production assembly study, which provided information on material and information flows in four-level supply chains.
The results of the study were remarkable and produced, among others:
- Industry savings of at least one billion dollars a year;
- Increased capabilities to react to fluctuations;
- Reduced costs.
The first version of MMOG was released in July, 1999. The second version, already with a system of self-evaluation, was created in July, 2000. In June, 2001, the benchmark was expanded to include a summary of weighted results.