Spotlights & Successes
Global MMOG/LE Work Group
The Materials Management Operations Guideline (MMOG/LE) is a supplier self-assessment and continuous improvement tool designed to enhance materials management efficiency and accuracy while reducing costs from errors and waste. Ultimately, the assessment aims to improve overall supply chain performance and reduce operational expenses.
"Organizations can feel overwhelmed when they first start working through the MMOG/LE," says Terry Onica, co-author of the guideline, a volunteer MMOG/LE instructor at AIAG, and director, automotive, for QAD. However, she points out that once they understand it, they usually make steady progress in the right direction. It’s not uncommon to see MMOG/LE users achieve inventory reductions of 15–60 percent, an 85 % reduction in premium freight costs, and an 80% reduction in obsolete materials.
Other reported benefits include fewer line stoppages, lower inventory carrying costs, and shortened lead times. Collectively, the benefits realized from using the MMOG/LE can make a significant improvement in mitigating supply chain risk.
Developed collaboratively by OEMs and suppliers through AIAG/Odette, MMOG/LE has evolved since its introduction as the global standard for evaluating supply chain management processes against industry best practices Now in its sixth version, MMOG/LE will mark its 21st anniversary in 2025. MMOG/LE is reviewed every three years to ensure the tool remains aligned with the latest supply chain developments and trends. The tool can be used by both supplier and customer throughout the entire product life cycle.
With over 100,000 MMOG/LE assessments submitted globally in mmogle.com, Onica says it’s clear how much the industry relies on it. “After taking the MMOG/LE assessment, participants report gaining preferred supplier status and achieving greater visibility and collaboration throughout the supply chain,” she notes.
The MMOG/LE helps maintain proper work instructions by requiring suppliers to document all their processes in detail. This is particularly crucial in today’s dynamic workforce. “When someone leaves, all the knowledge has already been captured through MMOG/LE, and it’s not just in their memory,” she explains. Smart suppliers further secure their operational continuity by ensuring additional personnel are fully trained to complete each process. This helps the supplier mitigate any risks associated with staff absences during unforeseen events such as the COVID-19 pandemic.
The creation of the MMOG/LE provided an invaluable experience for AIAG industry volunteers to collaborate with other leading supply chain experts from around the world. "Supply chains are currently so disruptive that I can’t imagine the industry without MMOG/LE," Onica says. "It’s the best tool for learning best practices in supply chain management — there’s nothing else like it. The MMOG/LE assessment demonstrates what is essential for success."
