Market Overview

QAD Joins Leading Automotive Enterprises at ODETTE 2012 to Discuss Global MMOG/LE

SANTA BARBARA, Calif.--(BUSINESS WIRE)--

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.

“We are delighted to participate at the Odette conference again this year,” said Onica. “I look forward to presenting the industry's experience in the development, implementation and training of such a globally successful, globally-recognized assessment as MMOG/LE.”

QAD offers MMOG/LE support, consultation, and ERP solutions to help suppliers implement the required business systems and prepare for internal reviews and customer MMOG/LE audits. QAD provides a MMOG/LE Answer Sheet which details exactly how QAD Enterprise Applications can help suppliers meet each of the 206 assessment points.

With offices in more than 20 countries, QAD is positioned to provide effective MMOG/LE support to customers around the world. QAD customers have leveraged MMOG/LE products and services to achieve preferred supplier status and improve performance.

QAD Enterprise Applications are available to manufacturers either deployed as QAD On Demand, QAD On Premise or as a blended deployment solution.

To find out more about QAD tools to support the MMOG/LE process, contact: mmogle@qad.com.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies specializing in automotive, consumer products, electronics, food and beverage, industrial and life sciences products. QAD applications provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time. For more information about QAD, telephone +1 805-566-6000, or visit the QAD web site at www.qad.com.

"QAD" is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

Note to Investors: This press release contains certain forward-looking statements made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “believes”, “anticipates”, “could”, “will likely result”, “estimates”, “intends”, “may”, “projects”, “should”, and variations of these words and similar expressions are intended to identify these forward looking statements. Forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and future conditions. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include, but are not limited to, evolving demand for the company's software products and products that operate with the company's products; the company's ability to sustain license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; delays in sales as a result of lengthy sales cycles; changes in operating expenses, pricing, timing of new product releases, the method of product distribution or product mix; timely and effective integration of newly acquired businesses; general economic conditions; exchange rate fluctuations; and, the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP) software industry are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. Investors should not use any one quarter's results as a benchmark for future performance. For a more detailed description of the risk factors associated with the company and the industries in which it operates, please refer to the company's Annual Report on Form 10-K for fiscal 2012 ended January 31, 2012, and in particular, the section entitled “Risk Factors” therein, and in other periodic reports the company files with the Securities and Exchange Commission.

QAD Inc.
Ashley DeVan
Sr. Director of Marketing Communications
+1 805-566-6126
ashley.devan@qad.com
or
Heidi Wieland
Media Relations
+1 805-565-2452
Heidi.wieland@qad.com

 

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