At the Odette International Conference and Exhibition for Supply Chain Management, IT and Telecommunications, QAD, (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise business software and services for global manufacturing companies, today announced QAD senior director, automotive vertical, Terry Onica will address best practices for supply chain management in the automotive industry. Onica will provide an overview about the Materials Management Operations Guidelines/Logistics Evaluation (MMOG/LE) global training, the process and the critical success factors. Joining Onica, representatives from General Motors, ZF Group and WABCO Vehicle Control Systems, will present their success stories from their respective implementations of MMOG/LE.
MMOG/LE was first introduced in 2002 by the Automotive Industry Action Group (AIAG) and its European counterpart Odette to improve global supply chains in the areas of materials management and logistics performance, and provide a self-assessment process for evaluating supplier performance. The MMOG/LE assessment automatically scores a supplier’s capabilities and identifies necessary actions for continuous improvement.
According to AIAG and Odette, suppliers around the world have improved supply chain operations with MMOG/LE, documenting:
- 25-50 percent reduction in raw materials and finished goods
- 30-85 percent reduction in premium freight
- 80 percent reduction in obsolescence costs
- 50 percent reduction to train employees on a new plant launch
- 20 percent improvement in monthly customer delivery ratings
- Increased delivery performance with sub-suppliers (Tier 2)
“The MMOG/LE assessment developed by Odette and AIAG has been a great global success,” said John Canvin, executive director at Odette. “Its recognition as a key supply chain performance improvement tool continues to grow each year as companies continue to adopt it worldwide. Our partner QAD has been instrumental in our success by helping us to deliver world-class training in many parts of the world.”MMOG/LE was developed by the automotive industry. Most OEMs today promote and recommend the training to their suppliers to help them achieve preferred supplier status and improve performance. Yet, AIAG and Odette report growing interest in and use of MMOG/LE in hospitals, construction, aerospace, chemistry, electronics, industrial and retail, positioning MMOG/LE as a benchmark and development tool for other manufacturing industries.