QAD Helps A.O. Smith Water Products Company Earn Corporate Award
07 September 2010 - 10:00PM
Business Wire
QAD Inc. (NASDAQ:QADI), a leading provider of enterprise
software and services for global manufacturers, announced today
that its recent deployment of QAD Enterprise Applications at the
A.O. Smith Water Products Company (WPC) in Nanjing, China plant has
helped the water heater manufacturer exceed its sales, inventory
and operational improvements objectives during the last 12 months,
winning the corporation’s coveted 2009 Values Recognition Award.
QAD also announced A.O. Smith WPC China’s launch of QAD Store
Management, a QAD custom application to provide greater visibility
of inventory and enhance profitability of A.O. Smith’s retail
stores throughout China.
As a market leader, A.O. Smith is committed to improving product
delivery accuracy as well as driving down costs. A.O. Smith WPC
China recognized that its legacy systems were a deterrent to
growth, being poorly integrated and excessively consuming staff
resources with manual processes. The company realized the need for
change in order to capitalize on China’s booming residential and
commercial demand.
QAD and A.O. Smith WPC formed a cross-functional project team
and were able to go live at the Nanjing plant with QAD’s Enterprise
Applications in August 2009. The project included a complete set of
documented standard business processes to support critical
initiatives.
“In concert with the QAD Enterprise Applications implementation,
we have been able to realize our resources’ full potential and
experience a significantly positive impact on our overall
business,” said Randy Bednar, Chief Information Officer for A.O.
Smith.
Among its core issues, A.O. Smith China needed to focus on
reducing inventory through improvements in data accuracy and
inventory turnover, while cutting inventory shortages and the
number of man hours lost due to those shortages.
“With our QAD solution in place, we were able to establish data
accuracy requirements and cycle counting processes that uniquely
affected our outcomes,” said Jim Hudsell, director of Logistics and
Distribution for A.O. Smith WPC.
In the 12 months since deployment, the A.O. Smith WPC Nanjing
Plant has documented positive results in several core areas. The
company reported 21% inventory reduction, exceeding its
pre-implementation goal, 75% reduction in lost man hours, and 50%
improvement in inventory shortages.
“Naturally, we’re delighted with the results,” expressed Anton
Chilton, senior vice president of Strategic Accounts for QAD.
“However, we’re not resting on our laurels. As a global
organization, A.O. Smith personifies the paradigm shifts occurring
in manufacturing, such as developing products to meet domestic
demand versus exporting. As A.O. Smith leads these changes, QAD
will continue to engage them as partners to expand on this success,
but more importantly, to help drive fundamental change and growth
in the manufacturing sector overall.”
About A. O. Smith Water Products Company China
A.O. Smith Water Products Company China, located in Nanjing, is
a leading manufacturer of residential and commercial water heaters.
It is a division of A.O. Smith Corporation, a diversified
manufacturer with headquarters in Milwaukee, WI. The company makes
commercial and residential water heating equipment under such
brands as Cyclone, Genesis, and Vertex. It also makes solar panel
water heaters under the Cirrex name. Products include commercial
boilers, commercial natural gas water heaters, residential electric
and natural gas water heaters, expansion tanks, and pump tanks.
Products are sold through a network of wholesale distributors, as
well as select retail chains.
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
science 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. 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 2010 ended January 31,
2010.
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