QAD To Participate In AIAG Interoperability Initiative; AIAG Enlists Company to Participate in Major Industry Project to Simplify Supply Chain Interactions

    ORLANDO, Fla.--May 19, 2003--QAD Inc. , a leading provider of enterprise applications for global manufacturers, today announced that it will participate in a key Automotive Industry Action Group (AIAG) project initiated to solve supply chain interoperability issues and facilitate communication to the lower tier suppliers in the automotive industry.
    QAD has offered resources and expertise to assist with the fundamental definition and test of interoperability standards. All participating companies will participate in fine-tuning and finalizing the standard.
    Sponsored by AIAG, the Original Equipment Supplier Association (OESA) and Odette, an industry association of European automotive manufacturers, the Inventory Visibility and Interoperability project is the backbone of an industry effort to drive effective collaboration among manufacturers and suppliers, and eliminate the need to maintain multiple proprietary applications for inventory visibility.
    In a recent survey of Tier-1 automotive suppliers conducted by MBA students at the University of Michigan, more than half of respondents named inventory visibility a top priority for automation. Furthermore, the one-time savings in inventory and working capital was perceived as justifying the cost of an interoperable platform. However, nearly three-quarters of respondents cited the need for industry-wide interoperability standards as a factor in their timing for deployment of related technology. The AIAG project will lead to protocols that comply with the Open Application Group, Inc. (OAGI) Business Object Document (BOD) specifications and enable competing inventory visibility products to interoperate.
    "QAD will provide help with initial determination of the interactions related to interoperability between inventory visibility applications," said Linda Plawecki, executive director of AIAG. "This project is on a fast track in response to the overwhelming needs of AIAG members for standards for interoperability."
    The Inventory Visibility and Interoperability Project will impact trading partner interactions such as inventory replenishment signals, and help reduce lead time in the supply chain. The initial phase will focus on defining the business processes related to MIN/MAX inventory levels, in which suppliers may access customers' inventory data to ascertain whether materials on hand are within acceptable levels according to schedule and respond accordingly. Work efforts will include identification of all the data elements exchanged through MIN/MAX process; mapping that data to XML standards; mapping the infrastructure - such as security protocols - for the movement of data from one system to another; and finally, proof-of-concept testing. The National Institute of Standards and Technologies (NIST) Interoperability test bed will be used for the last phase, this fall.
    "For the automotive industry in particular, inventory visibility will drive efficiency as supply is better balanced with demand," said Pamela Lopker, QAD president and chairman of the board. "The AIAG study will speed the creation of standards for interoperability that ensure applications work together and preserve manufacturers' and suppliers' choice of software. For more than two decades, QAD has focused on real-world manufacturing problems and brought global companies the best thinking on advanced manufacturing techniques, and our participation in this study underscores our commitment to the automotive sector."
    "Fragmentation along software application lines is a significant hurdle for the adoption of technology in the automotive industry, most notably in inventory visibility." said Kevin Prouty, research director, Gartner G2. Prouty went on to say, "By combining automotive-centric software vendors, multiple industry organizations, and significant user commitment, the AIAG's interoperability initiative will benefit the majority of Tier-1 manufacturers immediately on conclusion of the project. It also shows why the road to any major standard in automotive needs to begin with open specifications endorsed by the AIAG."

    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 +1 805 684 6614, or visit the QAD Web site at: www.qad.com. To receive any of QAD's press releases via facsimile, contact +1 800 356 0747, or outside the U.S. contact +1 213 253 5647.

    "QAD" and "MFG/PRO" are registered trademarks of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

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