This document provides
a common definition of standardized indicators to measure logistics
performance within the automotive industry for both production
and service parts.
To avoid each automotive company creating its
own Logistics Key Performance Indicators, Odette’s Logistics Functional Committee
identified the need to develop common KPIs. A Project group was
formed for this purpose in July 2004. The group’s mission
was to define and promote common indicators and common understanding
between the trading parties for parts supply in line with the Global
Materials Management Operations Guideline/Logistics Evaluation
(MMOG/LE) recommendation to increase performance and decrease cost
in the Supply Chain.
AIAG already had a document entitled Supplier
Delivery Performance Metrics Guideline (M-8), which was developed
in 2001. In June 2005,
a joint AIAG/Odette project team was formed to combine Odette’s
Logistics Key Performance Indicators and AIAG’s Supplier
Delivery Performance Metrics Guideline into one global document:
Key Performance Indicators for Global Materials Management and
Logistics (KPI for GMML).
Using standard indicators for logistics performance
will reduce cost and save time:
- for the Supplier, by harmonizing measurements of logistics performance
within the industry, and
- for the Customer, by facilitating the development or enhancement
of Supplier performance systems based on standard indicators.
The defined KPI for GMML are complementary
to the Global MMOG/LE. The Global MMOG/LE supports a plant’s
self-evaluation of its logistics capability. KPI
for GMML measure the effectiveness
of the logistics processes between parties.
Each company may use its own unique performance system; however,
the standard indicators specified in this recommendation should
form the basis for performance systems. The customer may require
additional supplier evaluation criteria.
A Trading Partner Agreement (TPA) should be in place before this
recommendation is deployed, as the KPI for GMML should be used
to measure the compliance of the TPA.
The scope of this document covers supply chain management processes
between Supplier and Customer. The recommendation does not include
- transport / carrier / logistics service provider performance,
- materials management and logistics performance during the preproduction
- internal logistics performance (e.g. stock level, cost indicators,
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