Paperless initiatives are growing by leaps and bounds in Brazil, and electronic data interchange is one of the technologies with most potential, especially in the automotive sector. In this area, supply chain problems and the MMOG/LE project (Materials Management Operations Guideline/Logistics Evaluation) are encouraging the spread of EDI even among the smallest businesses.
MMOG/LE is a standard driven by Odette and Aiag that sets the supply chain performance level of automotive companies. “This standard has over 200 self-assessment criteria, which allow us to identify possible gaps in logistic processes with a view to increasing efficiency and cutting economic costs,” explains William Pascheti, commercial director of the EDICOM subsidiary in Brazil.
The MMOG project is aligned with the ISO/TS 16949:2002 standard. In addition, a new version of the standard was launched in May 2014, known as MMOG Global/Lev4, with the aim of extending EDI to all automotive suppliers and even to other sectors. In this sense, automobile industry giants such as Renault, Ford or Chrysler have already called upon their tier 1 suppliers to adapt.
Communications between large corporations and their tier 1 providers are already 100% electronic, but now the use of EDI must become widespread among lower-level suppliers. As William Pascheti explains, “the aim is to make the entire supply chain paperless, which will optimize ‘Just-in-time’ methodology as far as possible.”
A challenge for small businesses
The MMOG project not only calls for the rollout of EDI to achieve a good qualification in the self-assessments, but also lists the specifications to be met in each interchange. Big companies can meet this requirement easily, although it may entail some difficulty for small suppliers without the appropriate technological resources.
“We are well aware of the issues for TIER 2, 3 and so on when it comes to implementing an electronic solution. To this end, at EDICOM we have developed different platforms, suitable for each company profile and adapted to the MMOG requirements,” adds EDICOM’s commercial director in Brazil. These solutions range from EDI integrated with the ERP or internal management system, designed for large corporations, to the low cost and quick start-up EDI web, where all you need is an Internet connection.