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 the following:

• transport / carrier / logistics service provider performance,
• materials management and logistics performance during the preproduction phase, or
• internal logistics performance (e.g. stock level, cost indicators, etc.).

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