1. Customer Self Service for Configured Products Hank Canitz – Sr. Dir Industry Marketing Midwest User Group Meeting

2.  Mass Production to Mass Customization  QAD Configurator  QAD Customer Success Story  Recommended Actions Midwest User Group Meeting

3. 3  Lower prices  Higher quality  Faster delivery  Customized products Midwest User Group Meeting “Mass Customization Is (Finally) The Future Of Products” Forrester, April 15 2011

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6. 6  The challenge – In a recent study more than 35% of consumers were interested in purchasing build-to-order products – A polarized economy will develop  The Impact – To meet CTO requirements manufacturers must adopt:  SC technologies that enable more efficient production  Customer-facing technologies, like order configurator  More effective management of engineering changes  More accurate new product demand projections Midwest User Group Meeting Commoditized Products High Value Offerings

7. 7 Midwest User Group Meeting Variety Volume DesignPurchaseManufactureAssembleShip InventoryManufactureAssembleShip ManufactureInventoryAssembleShip ManufactureAssembleInventoryShip Delivery Lead Time Engineer-to-Order (ETO) Make-to-Order (MTO) Assemble-to-Order (ATO) Make-to-Stock (MTS) Configure-to- Order (CTO)

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9. 9  A powerful application designed to simplify processing of configure-to-order products – Captures engineering knowledge – Guides through the selling process – Automatically generates work orders and routings Midwest User Group Meeting

10. 10  Guided sales – Flexible questionnaire design – Powerful price calculations  Instant conversion of customer requirements into manufacturing requirements – Product configuration rules – Seamless integration Midwest User Group Meeting

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12. 12  Integration with – Sales Quotations – Sales Orders – Items and Item-Site records – Product Structures – Routings – Costing – Pricing Midwest User Group Meeting

13. 13  Configurator uses QAD Enterprise Applications language infrastructure  Available in all QAD core languages Midwest User Group Meeting 13

14. 14  Meet customers’ specific requirements  Streamlined order and quotation process – Reduced error rates – Reduces lead time to fulfill orders  Bridge knowledge gap Midwest User Group Meeting

15. 15  Forecast consumption for planning items  User defined warning messages  Enhanced for kits and links to sales quotes/ orders  New attribute creation rules  Integration with enhanced best pricing Midwest User Group Meeting

16. March 2013 Release Midwest User Group Meeting 16

17. 17  Enhancement Release, March 2013 – Variant Item Master Comment creation – EMT support: Supplier Item creation – Cost Roll-up control flag in Configuration Rebuild – Usability and layout improvements in Questionnaire Midwest User Group Meeting

18. 18  Creates master comments for configured item  Perfect to add configuration description and notes  Visible with item, sales order print, invoice print, et cetera  Can also be used to create comments in multiple languages Midwest User Group Meeting

19. EMT Process Supplier Item is the cross- reference to convert PBU SO/PO line items into SBU SO line items Master Comments can be used for Configuration Description Configuration Model One central model One Configurable Item Item Set up Configurator Variant Item-Site Records for both sites BOM/Routing Linked to item number Domain A PBU Entity SO Site SBU Entity Ship-From Site SO POPO VItem VBOM VRout. VItem Site VItem Site CItem COP PC Rules SC Rules Supp. Item Midwest User Group Meeting

20. 20  Allows to rebuild configuration with or without a cost roll-up – A rebuild without cost roll-up is often done when cost are frozen for a certain period (typically a financial year), but the actual configuration changes within this period Midwest User Group Meeting

21. 21  Less “white space”  Logical features display in one line  Browse shortcut Alt-B  Auto-complete feature/option search text  Visual separation header data, configuration description in browse  Hide tabs without feature Midwest User Group Meeting

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24. 24 QAD CSS and Configurator Integration

25. 25 QAD CSS and Configurator Integration

26. 26 QAD CSS and Configurator Integration

27. 27 QAD CSS and Configurator Integration

28. 28 QAD CSS and Configurator Integration

29. 29 QAD CSS and Configurator Integration

30. 30 QAD CSS and Configurator Integration

31. 31 QAD CSS and Configurator Integration

32. 32 QAD CSS and Configurator Integration

33. 33 QAD CSS and Configurator Integration

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35. 35 Midwest User Group Meeting ProcessBenefitValue Configure complex products based on pre-approved engineering and sales business rules Product personalization / customization by semi-skilled sales staff Reduce errors Reduce selling time Increase market share Improved sales productivity $000’s 50%-90% 5% to 10% 10% to 50% Rules automatically translate possible configurations into actual items, product structures and routings Lower costs Reduce errors Reduced product lead-time 5% to 25% $000’s 10% to 50% Rules based generation of variant item numbers enable re-order of configured items Increase customer satisfaction Increase market share 10% to 20% 5% to 10%

36. 36  Determine the market for configured products in your industry…  Does your company have the desire and capability to design, manufacture, and sell configured products?  Build a business case to support getting into or improving your configured product capabilities through the use of the QAD Configurator. Midwest User Group Meeting

37. Schedule an on-site discovery / vision engagement to let QAD help you determine how to efficiently & effectively offer configured products. Midwest User Group Meeting 1 2 3 Discovery / Vision Engagement Rapid value assessment Map QAD potential solutions to business goals / strategies / tactics & processes Recommendations & ROI analysis of high potential areas Process QSCANs 4

38. Hank Canitz Senior Director Industry Marketing HCC@QAD.com Midwest User Group Meeting