supply chain case study

About MMOG / LE

MMOG is Material Management Operational Guidelines and LE is Logistics Evaluation. This is mostly called as MMOG/LE. This is a globally recognized standard which is used as a reference / benchmark to perform supplier assessment; Adhere to this standard would improve the efficiency in materials management, inventory management and logistics… thereby transforming the entire supply chain. Since MMOG/LE is a globally recognized standard, once the supply chain is in adherence to it and certified, it increases the overall brand value of the organization.

Hesol’s MMOG LE Portfolio

Hesol Consulting is a Pioneer in providing end to end MMOG/LE Transformation services to the Organization. We have 10+ MMOG/LE transformation portfolio across many countries and mostly in the Automotive sector. We have also used these standards to transform few other businesses from the Retail, FMCG, Textile and Pharma Industries.

ROI in MMOG / LE | Is MMOG a mere certification?

Though most see MMOG LE certification as a cost to the organization, we have changed the way MMOG had been looked at.

Years before, When we started reviewing MMOG/LE standards we believed that it has the capability to transform the entire supply chain delivering significant bottom-line savings as well as increasing the overall through-put, flexibility and ability to scale of the Supply Chain. We are not wrong, at each project we deliver significant improvement in supply chain such the ROI is less than 6 Months.

MMOG Results:

Some of the past projects results:

  • Supply Chain (Warehousing + Transportation) Cost reduction / avoidance by 23%
  • Supply Chain Channel Inventory reduction by 38%
  • Customer Returns reduction moved from 15% to 2.3%
  • Packing Material Savings by 43%
  • Yearly POU Availability improved from 95.4% to 99.1%
  • Through-put reduction by 45%
  • Air Freight reduction by 80%

These results have brought in Millions of cost savings to the Organizations. If you need to discuss more on these results, please feel free to directly reach our MMOG Consultant at this link: Click here

MMOG/LE Transformation Methodology

We have been on field driving multiple MMOG LE Transformations; each project is a great learning where we have to unlearn and learn on the run.

We have carefully kept the learning through out and developed our MMOG LE Transformation methodology which is proven on field.

We currently use the following 5 Phased method to effectively transform a Supply Chain such that it is aligned with the MMOG LE Standards.

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Proven MMOG LE Supply Chain Transformation Methodology

The 5 Phases are (1) Onsite / As-Is mapping (2) MMOG internal audit (3) Gap Analysis (4) MMOG LE Solution Design (5) MMOG LE Implementation. These phases are further knocked down into following main heads:

  • – Current Value Stream Map
  • – Generic MMOG checklist and Audit
  • – Client Specific MMOG Nuances
  • – Preliminary Gap Analysis
  • – MMOG Gantt
  • – Self Evaluation
  • – MMOG Internal Audit
  • – MMOG Checklist
  • – Set the detailed Project Plan
  • – Detailed Gap Analysis against the MMOG Standards
  • – Document the Areas of Improvement
  • – Report
  • – Solution design with options
  • – Capital needs with ROI
  • – Set adherence to the standards at minimal cost and minimal change to current business process (this is our Edge)
  • – Final Solution Report
  • – Design Realization
  • – Transformation
  • – MMOG Process Controls
  • – Stabilize
  • – Final Audit

MMOG LE is a transformational journey and the benefits reaped through this transformation gives the organization a competitive edge. Please feel free to share your comments or clarifications down at the comments section.

February 5, 2019
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