Materials Management Operations Guideline/Logistics Evaluation, or MMOG/LE in Mexico, facilitates effective relationships between original equipment manufacturers (OEMs) and suppliers.
The automotive industry is growing exponentially within Mexico’s borders. As such, the country is faced with the double challenge of increasing production and crafting high-quality products at an increasingly affordable price point. According to a report published in the Wall Street Journal, experts and analysts predict that Mexico will reach production levels of 4 million passenger vehicles and light pick-ups annually by the end of this decade. This future will place quite a strain on sourcing, with its concurrent demands for more the use of more sophisticated supply chain management systems. It is vitally important for automotive manufacturers seeking ever-increasing efficiency to accurately conduct internal assessments and organizational benchmarking efforts to improve supply chain performance.
To achieve this end, the standard tool used is the Global Materials Management Operations Guidelines/Logistics Evaluation (MMOG/LE) tool, which compares against industry best practices for accurate diagnostics and comparisons. In order for Mexico to keep pace with its global competitors, the use of MMOG/LE in Mexico will have to become more widespread. As a result of implementing MMOG/LeE tools:
Existing logistics organizations can be evaluated for capability and performance vis-à-vis customer or internal requirements. Operating procedures can be identified and streamlined accordingly to assist with reducing costs, waste, and workloads within manufacturing processes. Explaining and demonstrating supply chain operations is simplified through the implementation of MMOG/LE in Mexico.
Enhancements and Implementation in Mexico
In 2013, the Automotive Industry Action Group (AIAG) named QAD, a globally recognized leader in ERP leadership and automotive industry training as the designated provider of MMOG/LE training for automotive manufacturers in Mexico. QAD courses enable manufacturers to implement a world-class materials plan and logistics management system and complete an MMOG/LE supplier self-assessment,
which helps to identify potential issues and craft roadmaps for improvements. David Lalain, vice president at AIAG, said of the choice, “QAD is globally recognized for its ERP leadership, industry expertise and MMOG/LE training engagements with auto suppliers around the world.”
This year, QAD teamed up with AIAG to host an event for Ford suppliers in Mexico to explore recent enhancements to MMOG/LE in Mexico. Representatives from 25 countries converged on Mexico City for the event to learn how to maximize the impact of this useful tool in their own enterprises. Updates to both reflect changes in supply chain practices and enhance the functionality of the tool have been implemented to MMOG/LE, and last year’s 2014 update includes a “Basic” module primarily for smaller suppliers, as well as suppliers in developing markets or in additional sectors besides