Leading Global Automotive Manufacturers Embrace MMOG/LE as a Supply Chain Performance Standard
05 October 2010 - 11:07PM
Business Wire
QAD Inc. (NASDAQ:QADI), a leading provider of enterprise
software and services for global manufacturers, announced today
that its QAD Enterprise Applications software, with the
introduction of automotive Process Maps, will help suppliers to
more quickly achieve Materials Management Operations
Guidelines/Logistics Evaluation (MMOG/LE) Level-A on their
assessment and simplify implementation.
MMOG/LE is already embraced globally by Ford, Chrysler, Volvo
Car, Volvo Truck, Renault and PSA as part of their supplier
requirements. However, with General Motors recently announcing its
intention to embrace MMOG/LE and several other global OEMs planning
to announce soon, it’s clear to suppliers that this assessment
guideline is becoming a defacto standard. Moreover, with cautious
economic recovery forecasts, automotive suppliers are under more
pressure than ever to improve efficiencies to stay competitive.
“These announcements exemplify a continuing shift in automotive
manufacturers’ supplier expectations,” noted Terry Onica, senior
director for Automotive at QAD. “MMOG/LE compliance is increasingly
becoming a condition of doing business for all suppliers, and a
critical criteria for maintaining viability.”
To help proliferate and speed time to MMOG/LE supplier
compliance, QAD has introduced its automotive Process Maps, based
on MMOG/LE compliance requirements. QAD Automotive Process Maps
enable users to navigate through graphical views of a company’s
business model before drilling down into specific workflows and
processes, including operational metrics, compliance checkpoints,
training, work instructions, and direct access to QAD Enterprise
Applications software, to facilitate better user performance and
the adoption of MMOG/LE best practices.
In an industry where employee turnover has been high due to
financial crisis, many auto companies have had to rebuild and
retrain their staff. According to Onica, one of the leading reasons
manufacturers fall short on their MMOG/LE audit is a lack of proper
work instructions. “If an employee lacks the proper training and
knowledge on specific work instructions and processes, delivery
errors are more likely to occur,” she said. “OEMs and suppliers
alike find value in our Process Maps; they provide the necessary
process training and documentation needed and guide employees in
following industry best practices.”
Additionally, QAD offers an MMOG/LE Review process, globally,
enabling suppliers to prepare for the MMOG/LE assessment and
identify potential non-compliance issues prior to a formal customer
audit. QAD’s MMOG/LE Review includes an in-depth evaluation of
plant processes, documentation of responses to assessment points, a
gap analysis with an action plan for areas that need improvement,
and a formal review of findings with senior management.
MMOG/LE was first introduced in 2002 by the Automotive Industry
Action Group (AIAG), the North American automotive standards
association, and its European counterpart Odette, to improve global
supply chains in the area of materials management and logistics
performance. QAD is the only enterprise resource planning (ERP)
vendor serving as a member of the MMOG/LE standards committee and
is the AIAG and Odette designated training provider in Asia
Pacific, Russia, Poland, Slovenia and Czech Republic.
To help suppliers implement the required business systems and
prepare for internal reviews and customer MMOG/LE audits, QAD has
developed unique tools and targeted services. The QAD MMOG/LE
Answer Sheet provides details on exactly how QAD Enterprise
Applications can help a supplier meet each of the 206 assessment
points.
To learn more about MMOG/LE compliance requirements and
opportunities, visit
http://www.qad.com/erp/Industries/Automotive/MMOG-LE.
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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