The Supply Chains that support today’s modern and lean manufacturing environment are more complex and wide-ranging than ever before. In recent years, sourcing strategies have changed significantly and product is now purchased from every part of the globe as the financial benefit of buying from new and emerging markets has become more commonplace.

As the supply chain has become more extended, with product being shipped across and between continents, greater reliance has been placed on the relationship between the parties (customer, supplier, transport organizations, etc.) involved in the physical movement of the goods.

Clearly, it is normal for a contractual relationship to exist between the various supply chain partners in the form of a purchase order or contract that specifies the services to be provided and the associated costs involved. However, it is also important that the operational and day-to-day working relationship between the parties is documented in a Logistics Agreement so that roles and responsibilities are clarified.

The purpose of this Global Materials Management and Logistics Agreement (GMMLA) document is to provide recommendations and advice regarding the format and content of such an agreement.

This document is the result of cooperation between AIAG, which represents the North American automotive industry, and Odette.

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