How QAD Stacks up in Mid-Market ERPs For Discrete Manufacturers

Preface

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Introduction

QAD, Inc. (QAD) is a provider of Enterprise Resource Planning (ERP) software solutions. Founded in 1972, QAD caters to mid-sized manufacturers, distributors, and global companies in process and discrete industries. Their solutions focus on optimizing core business processes like production planning, inventory management, and financial accounting.

The Challenge

Mid-sized discrete manufacturers often juggle the challenge of complex production processes without the vast resources of larger enterprises. They need to balance tight production schedules with ever-changing material demands and ensure quality control for each unique product. Suppliers like QAD and other ERP (Enterprise Resource Planning) specialists offer a lifeline by streamlining these complexities. Their software integrates production planning, inventory management, and quality control into a single platform, providing real-time data and automation to optimize production flow, minimize errors, and keep costs under control. This allows mid-sized manufacturers to compete effectively with larger players in the market.

Rise to Prominence and Staying Relevant

QAD gained recognition in the 1980s and 1990s with its focus on the manufacturing sector. They built a reputation for offering a robust and customizable platform that could handle complex manufacturing workflows. In today's market, QAD stays relevant by:

• Industry Specialization: Maintaining a deep understanding of the unique needs of process and discrete manufacturers.
• Cloud Adoption: Offering cloud-based deployment options for increased scalability and accessibility.
• Technology Integration: Exploring new technologies like AI and machine learning to enhance their solutions.

QAD Adaptive ERP is their flagship product, a comprehensive ERP suite covering various functionalities. Pricing is typically not publicly available and involves negotiation based on factors like company size, modules needed, and deployment options. However, QAD does offer cloud-based subscription access, which can be a more predictable cost structure for businesses compared to traditional on-premise licensing.

Leveraging AI and Emerging Technologies

QAD is actively exploring ways to integrate AI, machine learning (ML), and robotic process automation (RPA) into their solutions. Here are some potential applications:

• Predictive Maintenance: Using sensor data and machine learning to predict equipment failures and schedule preventive maintenance.
• Demand Forecasting: Leveraging AI to analyze historical data and market trends to improve demand forecasting accuracy.
• Automated Workflows: Utilizing RPA to automate repetitive tasks like data entry and report generation, freeing up human resources for higher-value activities.

While specific details on QAD's current AI and ML implementations are limited, it's clear they recognize the potential of these technologies in enhancing their ERP offerings.

The Competitive Landscape (Top 5)

The suppliers on our Top 5 list specialize in discrete manufacturing for mid-market customers and offer highly customizable solutions.

We're leaving SAP, Oracle, and Microsoft Dynamics off the Top 5 list for discrete manufacturing ERP with high customization for a few key reasons:

• Market Focus: These giants target large enterprises with complex business needs. Their solutions are powerful and feature-rich, but cater more to a broad range of industries rather than being specifically designed for the intricacies of discrete manufacturing.
• Customization Complexity: Implementing and customizing these large-scale ERP systems can be expensive and time-consuming. This makes them less suitable for mid-sized discrete manufacturing companies that require a more agile and cost-effective approach with a high degree of customization.
• Industry Specialization: QAD, Infor, Epicor, SYSPRO, and Acumatica have a stronger focus (and some would argue a deeper understanding) of the challenges and nuances of discrete manufacturing. Their solutions are built with these specific needs in mind, offering functionalities and features directly relevant to production planning, inventory management, and quality control in this industry.

Here's a table summarizing the key differences:

However, there are some exceptions to consider:

• Very Large Discrete Manufacturers: These companies might have the resources to handle the complexity of SAP, Oracle, or Microsoft Dynamics and still benefit from the deep industry expertise of QAD or similar suppliers (some use a combination of solutions).
• Specific Functionalities: Companies might utilize specific modules from SAP, Oracle, or Microsoft Dynamics (e.g., supply chain management or business intelligence) alongside a more specialized discrete manufacturing ERP like QAD.

Ultimately, the best choice depends on your company's size, budget, and specific needs. For most mid-sized discrete manufacturing companies seeking a highly customizable ERP solution tailored to their industry, QAD, Infor, Epicor, SYSPRO, and Acumatica are the more relevant contenders.

In keeping with the highly customizable nature of the solutions, we have also left off:

• Sage: a strong player in manufacturing ERP, but not as well suited for highly customized, discrete manufacturing needs as the others in our Top 5.
• NetSuite: a solid platform with good functionality for discrete manufacturing with decent customization options, but not as well suited for organizations that need highly customized workflows.
• SMARTERP: a potential option for organizations with processes that overlap discrete and process manufacturing, or those with limited customization needs. However, its core focus is process manufacturing, and its support network is significantly smaller than the others.

This leaves us with a set of contemporaries, all with highly customizable ERP solutions for mid-market discrete manufacturers. Here are the following Top 5 suppliers to consider:

1. QAD Adaptive ERP: A well-established player with a strong understanding of discrete manufacturing processes. It excels in customization, allowing companies to mold the solution to fit their specific needs.
2. Infor CloudSuite Industrial: A comprehensive solution with deep functionality for production planning, inventory management, and quality control in discrete manufacturing. It offers a high degree of customization to cater to unique workflows.
3. Epicor Kinetic: Known for its ease of use and strong functionalities relevant to discrete manufacturing. It provides a high level of customization for companies to tailor the system to their specific needs.
4. SYSPRO ERP: A robust ERP solution with a proven track record in discrete manufacturing. It offers extensive customization capabilities to fit unique workflows and industry requirements.
5. Acumatica Cloud ERP: While its core strength might lie in broader functionality, it still offers features for discrete manufacturing and a good level of customization and has been gaining market share with a modernized and user-friendly interface.

Order Not As Important As Fit:

It's important to note that the order listed above is not a ranking of market share or overall superiority. The best fit for your company will depend on factors like:

• Specific needs: Evaluate which functionalities (production planning, inventory management, quality control) are most crucial for your discrete manufacturing processes.
• Customization requirements: Assess the level of customization you need to fit your unique workflows.
• Industry expertise: Consider if a supplier has a proven track record and deep understanding of the challenges specific to your niche within discrete manufacturing.
• Budget and implementation complexity: Compare pricing models, potential customization costs, and implementation timelines for each supplier.

Feature Analysis and Pricing:

It's important to compare QAD with other mid-market ERP providers with a similar specialization in process and discrete manufacturing. Here's a brief comparison:

Feature Analysis of Top Discrete Manufacturing ERP Solutions

Please note: This table is a general comparison, and specific features might vary within each supplier's product offerings.

Saving Money on QAD:

Here are the top 5 ways to potentially save money on QAD:

1. Optimize QAD usage: Conduct internal audits to identify unused modules and consolidate user licenses.
2. Explore alternative licensing options: Investigate cloud-based subscriptions or tiered licensing based on usage and consumption.
3. Leverage QAD user communities: Utilize online resources and forums to learn cost-saving best practices from other QAD users.
4. Match Support to Needs: If your critical functions are well understood by your team, your team has the capability to troubleshoot and handle first-line support issues, and downtime tolerance is moderate, a Basic or Standard support option might be sufficient, reducing costs compared to Premium Support.
5. Negotiate your contract: Carefully analyze your current usage and negotiate for lower license fees and/or reduced maintenance costs.

Poor Man's Open-Source Solution

While QAD offers a comprehensive solution, it can be expensive for some companies. Here's an alternative approach, but be aware of the limitations:

Building Your Own ERP Stack: Open-source software options exist for various functionalities traditionally covered by an ERP system:

• ERP: Odoo, xTuple, Openbravo (These might require more customization compared to QAD)
• CRM: SugarCRM, SuiteCRM (Focus on ease of use and customization)
• CMS: WordPress, Drupal (Popular options but require development expertise)
• E-commerce Platform: WooCommerce, PrestaShop (Suitable for smaller businesses)
• BI: Pentaho, Jaspersoft (May require additional configuration for specific needs)

Important Considerations:

• Customization: Open-source solutions often require significant customization to match your specific needs compared to a pre-built ERP like QAD.
• Support: While open-source communities offer support, paid support options might be limited compared to dedicated QAD services.
• Implementation Complexity: Building and integrating an open-source stack requires technical expertise and ongoing maintenance.

This approach can be cost-effective for smaller companies with the technical resources to manage it. However, it requires careful planning and ongoing effort to ensure a functional and secure system.

Conclusion:

While QAD offers a robust and powerful ERP solution for process and discrete manufacturing companies, its cost might not be ideal for all. To optimize your investment, consider right sizing and right licensing your estate, exploring alternative licensing options, utilizing QAD user resources, evaluating your support options, and negotiating your commercial arrangement and contractual agreement. If budget is a major concern, evaluate the feasibility of an open-source stack, but be prepared for the trade-off in customization and support. Regardless of your path, NET(net), Inc. can be your partner to help you cost optimize your QAD investments and/or by exploring alternative ERP solutions to ensure you get the most value for your business.

Call to Action

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About the Author

Steven C. Zolman is a leading expert in technology investment optimization and the founder, owner, and executive chairman of NET(net), Inc., the world's leading technology investment optimization firm. With over 30 years of industry experience, Mr. Zolman has helped client organizations of all sizes maximize the value of their technology investments by minimizing cost and risk and maximizing the realization of value and benefit.

About NET(net)

Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get, and keep more economic and strategic value in their technology supply chains. Over the last 20 years, NET(net) has influenced trillions of investment, captured hundreds of billions of value, and has helped clients cost and value optimize all major areas of IT Spend, including XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, and Telecommunications, among others. NET(net) has the experience you want, demonstrates the expertise that you need, and delivers the performance you demand and deserve. Contact us at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1 (616) 546-3100 to see if we can help you capture more value in your IT investments, agreements, deployments, and relationships.

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