QAD On Demand ERP SaaS Helps Marshall Electric Automotive Achieve Ford Q1 Status

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QAD On Demand ERP SaaS Helps Marshall Electric Automotive Achieve Ford Q1 Status

Key Criteria for Selecting QAD On Demand is its China-ready Internationalization

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- QAD Inc. (NAS: QADA) (NAS: QADB) , leading provider of enterprise business software and services for global manufacturing companies, today announced Marshall Electric Corporation, a provider of automotive ignition coils,utilized the QAD On Demand enterprise resource planning (ERP) solution to help earn Ford Q1 status, a key automotive OEM compliance certification. As a result of achieving Ford Q1, Marshall Electric has more than doubled its business from $12 million to $26 million since implementation of QAD in 2010.


"We investigated other ERP systems, like SAP and other mid-level software but QAD offered the only solution that met our specific requirements such as China-ready internationalization," said Dan Miller, president of Marshall Electric Corporation. "Recommended by another QAD customer as a solution with superior support to achieve Ford Q1 status, the decision to move forward with QAD On Demand was easy."

QAD On Demand with its built-in process maps enabled Marshall Electric to efficiently meet Materials Management Operations Guidelines/Logistics Evaluation (MMOG/LE) Level A requirements. This is a mandatory requirement that proves to Ford that the supply chain management processes in use at Marshall Electric follow best practices and are deemed world-class. With Ford Q1, Marshall Electric is viable to gain business from Ford and from other automotive manufacturers as well.

Grows Business without the Need to Invest in IT

QAD On Demand allows Marshall Electric to continue to simplify operations and communications between their Chinese manufacturing facility and their U.S. warehouse. As a result of these efficiencies with QAD On Demand, and implementation of MMOG/LE best practices, Marshall Electric has been able to sustain continued growth and productivity, adding only one new full-time employee to their office staff and requiring no IT in-house staff.

"For more than 20 years, QAD has worked with automotive suppliers, the Automotive Industry Action Group (AIAG) in the U.S. and with Odette in Europe, to develop the methods and systems that help automotive manufacturers become more effective," said Terry Onica, QAD senior director, automotive vertical. "Our customers have come to rely on QAD to help them discover low-cost solutions with fast implementation for opportunities in key markets, such as Brazil, Russia, India and China."

Better Supply Chain Visibility Enhances Decision Making and Productivity

The China-ready internationalization of QAD On Demand enables Marshall Electric to effectively communicate its requirements with its Chinese suppliers. This supports greater supply chain visibility and enhances fact-based decision making.

Moreover QAD On Demand enables Marshall Electric to automate supply chain processes that increase productivity. QAD has helped Marshall Electric to streamline customer demand processes, reducing manual processing from four hours to one.

"With QAD, we've gained the keys to success with our single integrated ERP system," added Miller. "We're growing in this economy because we are able to operate at peak efficiency—and with QAD On Demand, we're equipped with agile tools. We're focused on delivering the right solution to balance demand and supply while reducing inventory, meeting stringent quality standards and demanding delivery schedules. This results in delighting our customers and winning new business."

About Marshall Electric Corporation

Marshall Electric Corporation manufactures and sells ignition coils across the globe, with distribution centers in Indiana, Wales, and Southern China. It offers automotive original equipment manufacturer ignition coils, in the traditional remote mounting and coil on plug design. The company custom designs ignition coils to meet the customer's requirements. Its customers include companies in the automotive, motorcycle, recreational and industrial industries. Marshall Electric Corporation was founded in 1974 and is headquartered in Rochester, Indiana. For more information about Marshall Electric Corporation, visit www.marshall-electric.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

KEYWORDS:   United Kingdom  United States  Europe  North America  California  Germany

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