QAD Enhances Vendor-Managed Inventory Solution with Kanban Visualization
ORLANDO, Fla.--May 19, 2003--New Kanban Visualization Helps Further Enhance Supply Chain Efficiencies; Manufacturers, Suppliers Continue to Embrace QAD Supply
Visualization
As hundreds of representatives from many of the world's largest manufacturers convene for its annual user conference Explore, QAD Inc. , a leading provider of enterprise solutions for global manufacturers, today announced Kanban Visualization.
This new functionality enhances QAD's existing Supply Visualization solution with immediate insight into kanban status. For manufacturers using kanban production methods and seeking greater supply chain efficiency, QAD Supply Visualization with Kanban Visualization improves vendor-managed inventory (VMI) initiatives by providing streamlined kanban management.
QAD Supply Visualization extracts inventory and procurement data from manufacturers' ERP systems and stores it securely on MFGx.net, QAD's hosted exchange where authorized suppliers can access the information and initiate the replenishment process. By providing secure, real-time insight into this data, the application enables automotive, consumer products, medical, industrial and electronics manufacturers to better synchronize inventory with demand.
Kanban Visualization enhances inventory management for companies that use the kanban production model. QAD's Kanban Visualization presents the status and quantity of kanbans graphically so that suppliers can see when stock needs replenishing, enabling them to print kanban cards immediately, instead of waiting for the customer to send a copy. Its open API easily integrates with manufacturers' existing enterprise systems. Kanban Visualization also will alert managers and suppliers to relevant inventory changes, for example, via e-mail, so that they can act quickly and ensure efficient replenishment.
"Kanban Visualization helps manufacturers add efficiency to a proven production model, and creates new opportunities for cost-savings and responsiveness to real-world business conditions," said Jim Kirkley, QAD chief technical officer. "This enhancement to Supply Visualization reflects QAD's focus on manufacturing for more than two decades, combined with the latest technologies and manufacturing techniques to further streamline the supply chain."
Customers, Suppliers Embrace Supply Visualization
As QAD delivers new features and functions that address real-world manufacturing needs, customer adoption of QAD Supply Visualization has nearly tripled and customer sites deployed have increased six-fold, while the number of facilities slated for implementation has grown ten-fold in the past year. Concurrent with customer adoption, nearly 400 suppliers have embraced the software to monitor and act on changes in inventory levels, purchase orders, schedules and schedule releases.
Companies that have implemented QAD Supply Visualization have reduced costs associated with carrying inventory, transportation and expediting, and administrative expenses. Webasto AG, one of Europe's largest automotive suppliers of ventilation, heating and cooling systems, has achieved significant return on its investment in QAD Supply Visualization.
"Since implementing QAD Supply Visualization in April of 2002, Webasto has significantly reduced raw material inventory, which has moved funds from inventory to cash on the balance sheet, and has reduced total annual inventory carrying costs by more than $180,000," said Mike Thibideau, CIO of Webasto North America. "In addition, this initiative has helped reduce parts outages and premium freight costs."
About QAD
QAD enterprise applications leverage advances in Internet and enabling technologies to 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. Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and medical products use QAD applications at approximately 5,200 licensed sites in more than 80 countries and in as many as 26 languages. For more information about QAD, telephone 805/684-6614, or visit the QAD Web site at: www.qad.com. To receive any of QAD's press releases via facsimile, contact 800/356-0747, or outside the U.S. contact 213/253-5647.
"QAD" and "MFG/PRO" are registered trademarks of QAD Inc. "MFGx.net" and "Supply Visualization" are service marks 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. 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 strong licensing demand; the ability to sustain customer renewal rates at current levels; the publication of opinions by industry analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; difficulties relating to integration of a new business; the entry of new competitors and their technological advances; delays in localizing the company's products for new markets; 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; and general economic and geopolitical factors. In addition, revenue and earnings in the enterprise resource planning (ERP), e-business and collaborative commerce software industries 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 growth. 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 the fiscal year ended January 31, 2003.