Introduction Review of QAD Enterprise Solutions What s Next:

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2 Introduction Review of QAD Enterprise Solutions What s Next: - Present the Discovery phase results - Identify areas of opportunity - List ideas for potential gains - Prove why QAD is the best solution

3 Research Process Executive Interviews Previous meetings and discussions Internet Resources Company 10K Analyst Reports

4 Background High-quality pump manufacturer Operations in US, Brazil and Italy Employees: 2300 Revenue: $350M

5 Market Segments North America (50%) Europe(40%) Asia Pacific (10%)

6 Strategic Objectives Low Cost Manufacturer Relocate US manufacturing to Latin America Expand Market Reach Premier Service to Markets Served

7 Current Challenges Consumer market served through US retailers Turbulent commodity market for metals Too slow to market for specialty products Past acquisitions not as successful as planned

8 Key Initiatives Support organic growth Reduce waste and overhead Increase visibility Develop an enterprise business model

9 Key Metrics Metric Current Target Inventory Turns 4 6 Inventory Accuracy 86% 96% Delivery Time 23 days 14 days Delivery Accuracy 91% 99% Close Days 19 5

10 QAD Enterprise Applications Production Locations Manufacturing Site North America Corporate Headquarters Miami, Florida Manufacturing Site Florence, Italy Distribution Centers and Sales Agents Manufacturing Sites Brazil and Argentina

11 History with QAD 1999 First implementation, version Warehouse Management 2003 Repetitive 2004 Upgraded to QAD eb Upgraded to QAD Upgrade to EE 2011

12 Results to Date QAD Solution Results Achieved AIM Improved shipment accuracy from 50% to 95% Trade Management Reduced transportation costs by $2M per year Reduced shipping personnel by 2 FTE Manufacturing Decreased WIP by 25% Reduced planners from 4 to 2 Reduced manufacturing lead time from 4 weeks - 6 days. Deployed Mexico on Dallas server Business Intelligence Reduced IT costs Reduced Mexico IT staff by 3 Improved analysis of sales history leading to better territory balance Reduced IT costs from 2% to 1% of revenue by displacing mainframe with Linux based servers 12

13 QAD Observations Reduce inventory by more effective use of bar code data Improve customer satisfaction by leveraging QAD planning solution Improve delivery times by improving supply chain processes

14 General Model Design Plan Service Engage Deliver Customer Supplier Source Make Finance Projects Track Lot/Serial EDI Transport Maintain Assets Warehousing Compliance Analytics 14

15 Your Company Key Processes Create Sales Quotations Master Schedule Make Products Manage Quality Service & Support Design Configured Products Process Sales Orders Schedule Orders Make Configured Products Customer EDI or Web from Customer Master Schedule Supplier Receive Products Supplier Delivery Performance EDI Advanced Shipping Notice EDI or Web to Supplier 15

16 Investment Alternatives Alternative Potential Benefit Require Upgrade New Module Learning Plan Better use of software Reduced employee turnover No None Implement Configured Products Reduce from inventory $50M to $40M Improve forecast accuracy to 90% Yes Configurator Reduce manufacturing lead time to 4 days Reduce expediting staff from 3 to 1 No None Managed EDI Reduce shipping lead time 2 weeks to 1 week No EDI On Demand Reduce risk Improve infrastructure No None

17 Return / Investment Estimates High Benefits Learning Plan Managed EDI On Demand Configured Products Low Low Investment High

18 Road Map Learning Plan Managed EDI Configured Products On Demand 18

19 References Company Global Pumps International Services Parker Manufacturing Banes Corrugated Paper Benefits Received Reduced inventories to 30 day supply Enabled web order entry for service parts Reduced order entry personnel by 35% Improved on time shipments - 3 weeks to 1 week Achieved SOX certification within 6 weeks of implementation 19

20 Next Steps Further analysis through: - Supply Chain Process Q-Scan - Learning Q-Scan - Technical Q-Scan Further exploration of - Lean - VMI