What next for Global MMOG/LE

The current version of Global MMOG (Version 4) was first released in 2014 and now needs to be reviewed in order to ensure that it takes account of the constant evolutions in supply chain processes and technology. A team of supply chain experts from Odette and AIAG member companies has therefore been assembled and is meeting on a weekly basis to define the new requirements for Version 5 of the tool.

Satisfying the needs of the automotive industry requires a sophisticated approach to supply chain management. Balancing the increasing demands of customers with available resources is no easy task and it is vital that managers and logistic experts know exactly which parts of the logistics process are fit for purpose and which are not.

Rising to this challenge, the MMOG/LE (Materials Management Operations Guidelines/Logistics Evaluation) tool developed by Odette and AIAG has become the de-facto standard for evaluating supply chain processes in the global automotive industry and is widely used for internal assessments, organisation benchmarking and improving supply chain performance.

The tool is used by both suppliers and customers throughout the entire product life cycle, from early product development and pre-production phases through to the post-production aftermarket/service phases as an essential aid to continuous process improvement. In many cases, the use of the tool is mandated by major automotive OEMs towards their global supply base for self-assessment and reporting of their logistics capability.

The new Version 5, which is planned for release in Q1 2019, will quickly become the required standard for self-assessment by automotive suppliers and we expect customers to be announcing their V4 to V5 migration plans over the coming months to ensure that their suppliers have sufficient time to bring their logistics operations up to speed.

For example, companies will be expected to have a risk management process in place to ensure continuity of supplies when the organisation is required to deviate from normal operations. Another important feature will be cybersecurity with companies needing to ensure that their data is secure both internally and with third party partners and especially whilst in transit.

The preliminary vectors of change for Version 5 include:

  • Risk management
  • Cybersecurity
  • Digitalisation
  • Industry 4.0
  • Alignment with IATF 16949

An evolution, not a revolution
The Odette/AIAG team is, however, mindful of investments made by the many companies who have implemented Information Systems and processes to carry out assessments and analyse the results based on Version 4. In order to safeguard these investments, the structure of Version 5 (Chapters, subchapters, scoring…) will remain as close as possible to the current version.

Also read MMOG.np makes MMOG/LE Assessments more efficient