QAD Inc. Strengths, Domain Expertise, and Key Differentiators
QAD provides enterprise software applications for leading global manufacturing companies. QAD Adaptive Applications are designed to simplify the management and enhance the efficiency of manufacturing and supply chain operations both within and beyond the enterprise, enabling manufacturers throughout the world to transact and collaborate with their customers, suppliers, and partners. QAD design its solutions to ensure they fit well out of the box due to only serving the automotive, life sciences, consumer products, food & beverage, high tech and industrial sectors of manufacturing. The QAD Enterprise Platform then makes it easy to extend the solution and build new apps without interfering with upgrades.
QAD Adaptive ERP includes capabilities needed by most manufacturers in the areas of financials, customer and service management, manufacturing and supply chain. It is built on the QAD Enterprise Platform, which uses a modern RESTful, microservices architecture and includes the Adaptive User Experience (Adaptive UX). The QAD Adaptive Applications portfolio also includes severl closely related solutions including QAD DynaSys DSCP (demand and supply chain planning), QAD Precision GT&TE (global trade & transportation execution), QAD Automation Solutions for digital data collection and warehousing, QAD Supplier Portal, QAD Cloud EDI, QAD EQMS (enterprise quality management system), QAD Production Execution (IoT shop floor and manufacturing visiblity) and others, all of which integrate seamlessly with QAD Adaptive ERP. The QAD Cloud provides a true global cloud with 24x7 around the clock, follow the sun support.
QAD Inc. Recent Developments
On October 7, 2021, QAD announced the latest enhancements to QAD Adaptive ERP and the QAD Adaptive Applications portfolio designed to help manufacturers become Adaptive Manufacturing Enterprises. This latest release continues to add functionality across its entire suite of solutions, it also features the addition of QAD Sourcing and QAD Supplier Relationship Management (SRM) to its Integrated Supplier Management capabilities. These two new solutions will help customers communicate effectively and transparently with their suppliers, automating and streaming supplier performance and risk information across the supplier lifecycle. Updates to other areas in the QAD Adaptive Applications solution portfolio include QAD DynaSys Digital Supply Chain Planning and QAD Precision Global Trade and Transportation Execution capabilities. Taken together, this latest release enhances customers’ intelligence, innovation and business agility to help them recognize, prepare for and leverage disruption to their competitive advantage.
In addition to the latest updates to QAD Adaptive ERP, which features the QAD Enterprise Platform and Adaptive UX, QAD has enhanced related solutions in its Adaptive Applications portfolio, including QAD DynaSys DSCP (Digital Supply Chain Planning) and QAD EQMS (Enterprise Quality Management System). Updates to QAD EQMS also offers improvements to secure ITAR (International Traffic in Arms Regulations) data and updates to the Medwatch 3500A adverse event workflow and reporting.
QAD Precision GTTE (Global Trade & Transportation Execution) has also added a new Foreign-Trade Zone (FTZ) solution allowing manufacturers and distributors to establish and successfully manage FTZs and bonded warehousing operations – resulting in lower import costs and improved supply chain velocity. This is the second major release of the application portfolio this year. The previous update in March 2021 featured enhancements to help “Adaptive Manufacturing Enterprises” (i.e. QAD customers) manage disruption. It was in this release where QAD significantly enhanced its Integrated Supplier Management capabilities with the recent acquisition of Allocation Network.
In February 2021-- QAD Precision, a division of QAD announced that it participates in Veracode Verified, a program that validates a company’s secure software development processes and has achieved Team Tier status. Veracode Verified empowers QAD Precision to demonstrate its commitment to creating secure software. As part of Veracode Verified, QAD Precision can validate from an industry leader that its application has undergone security testing as part of the development practice. Additionally, participating in the program helps its software meet a high standard of application security, reducing risk for the customer.
In July 2020, QAD Precision, a global trade management and transportation execution software launched it's latest release of QAD Precision 18.1, the next-generation version of its global trade and shipping software. Additionally, it launched enhancements to QAD Adaptive ERP and related solutions in the QAD Adaptive Applications portfolio.
In April 2019, Precision Software, DynaSys, and CEBOS rebranded as QAD Precision, QAD DynaSys, and QAD CEBOS. QAD formed QAD Labs to focus on the development of solutions with emerging technologies on practical applications for their customer base.
QAD Inc. Mergers and Acquisitions (M&A) Activities
In December 2021, QAD acquired Digital Commerce Solution Provider WebJaguar.
On November 5, 2021-- Thoma Bravo, a leading software investment firm, and QAD Inc announced the completion of Thoma Bravo’s acquisition of QAD for approximately $2 billion in cash. The transaction was previously announced on June 28, 2021. This acquisition was not without a bit of controversy as a hedge fund investor filed suit in Delaware against QAD Inc.'s board and proposed acquirers at Thoma Bravo, claiming QAD’s planned sale would violate its charter by giving preferential terms to its founder (Pam Lopker), who controls the company through super-voting stock. This lawsuit forced further disclosures and delayed the vote by shareholders by two weeks. But ultimately it was approved by QAD’s stockholders at the Special Meeting of Stockholders held on November 2, 2021. Thoma Bravo has made statements to the effect that it is committed to support QAD in its mission to enable its customers to rapidly adapt to disruption and to effectively innovate for competitive advantage, bringing expertise, resources and support to build on the momentum QAD has achieved as a public company.
In January 2021, QAD acquired Allocation Network GmbH, following this in April 2021, QAD acquired Foreign-Trade Zone Corporation. In December, 2020 QAD announced it entered into a definitive agreement to acquire Allocation Network GmbH, a best-in-class solution provider for strategic sourcing and supplier management, based in Munich, Germany. Through this acquisition, QAD’s new SRM gives manufacturers and their suppliers a single point of entry to facilitate real-time communication, improve procurement processes and reduce inbound supply risks. It delivers value across direct and strategic indirect procurement activities by improving strategic sourcing, supplier quality management, contract management and supplier performance.
In April 2021QAD announced it had acquired Foreign-Trade Zone Corporation (FTZ Corp.), a leading provider of cloud-based Foreign-Trade Zone (FTZ) software and consulting services based in Mobile, Alabama. QAD expects to integrate FTZ Corp. into QAD Precision, the company’s global trade and transportation division. The addition of FTZ Corp. is expected to expand QAD’s addressable market, drive additional cloud growth within its existing customer base, and strengthen its trade and transportation solutions.
QAD Inc. Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying QAD Inc. applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of QAD Inc. and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified QAD Adaptive ERP customers.
QAD Inc. Overview
Ownership: - Thoma Bravo
Number of Employees: 1930
QAD Inc. Key Enterprise and Cloud Applications
QAD Adaptive ERP
QAD Inc. Revenues, $M:
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* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
QAD Inc. Revenue Breakdown By Type, $M:
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QAD Inc. Enterprise Applications Revenues By Functional Markets, $M:
QAD Inc. Enterprise Applications Revenues By Verticals, $M:
QAD Inc. Revenues By Region, $M
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QAD Inc. Direct vs Indirect sales
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QAD Inc. Customers - Breakdown by Geo, Size, Vertical and Product
No. of QAD Inc. Customers: x
No. of QAD Inc. Enterprise Applications Customers: x
No. of QAD Inc. Cloud Customers: x
No. of QAD Inc. Cloud Subscribers: x
Over 4,000 manufacturing sites use QAD solutions to run their businesses. QAD's solutions are used by over 300,000 active users. QAD is a ""cloud first"" vendor and starting offering cloud solutions in 2003.
QAD Adaptive ERP and QAD Adaptive Applications customers include Nexteer, Lear Corporation, Lasko, Scosche, Sun-Maid, Comvita, SPC, FEI, Encoder, Saft, Marrucci, Watts, Amcor, Arthrex, HeartWare, Second Sight, Autoliv, Amtico, Sharp, Laerdal and Yanfeng Automotive Interiors
QAD Inc. Market Opportunities, M&A and Geo Expansions
QAD’s continued investment in development, supplemented by select acquisitions to extend its solution in its target verticals, provides significant incentives to existing customers to renew and makes it a viable candidate for new prospects, especially those stuck on legacy solutions. QAD typically sees the most opportunity in automotive, where it not only has demonstrated strength, but also has made quite a name for itself. But there is also significant opportunity in its other selected verticals (consumer products, food & beverage, high tech, industrial and life sciences). This is evident in its continued growth. As an example, total revenue for the fiscal 2022 second quarter grew to $84.8 million from $74.1 million for the fiscal 2021 second quarter, resulting primarily from increases in subscription and professional services revenue. It’s current run rate now is $308 million in annual revenues. QAD is also actively seeking new channel partners who can help it reach new markets. It is looking for new partners with extensive industry experience combined with knowledge and passion for its solutions.
The availability of QAD Adaptive ERP with the QAD Enterprise Platform and Adaptive UX, ror existing and prospective customers in the QAD Cloud, provided significant improvements across the portfolio through two major release over the last year. This includes a reengineering of several solutions like Fixed Assets and QAD Supplier Portal. Both release continue to expand the number and capabilaities of the role-based Action Centers and which included embedded analytics, over 300 built-in KPIs and the ability to easily modify or build new dashboards and KPIs.
QAD Inc. Risks and Challenges
QAD’s installed base of customers is not all running the latest release of its product. Some are stuck on very old releases, often due to inertia and heavy customization. These customers also present a risk. For those stuck in the past, for whatever reason, it is not (and should not) be a simple upgrade/migration to the latest release or just a lift and shift to the cloud. In order to gain the full benefits of the new, modernized, technology-enable solutions, they will have to re-implement. And so this opens the door for a full selection process, which may bring in competing products.
Though QAD's architecture can support multi-tenant deployment, QAD only chooses to use multi-tenancy for use cases where it is obviously required, such as in supply relationship management and eCommerce apps. QAD does run multi-tenant at the IaaS layer, and its focusing of its energies on the availability and performance of the cloud instances has resulted in a 99. 9+% availability of the QAD Cloud over the three years.
While the lack of a multi-tenant approach might prevent QAD from winning with small manufacturers, due to its FDA qualified cloud offering for Life Sciences, it has experienced strong traction with early-phase companies in that sector. Because of increased focus on quality in the automotive sector, emerging automotive manufacturers have adopted QAD Adaptive ERP for Automotive due to QAD’s full integration with MMOG/LE, a global standard for evaluating supply chain management processes against industry best practices. This has created particular opportunity for QAD during the restart of manufacturing operations during the pandemic.
QAD Inc. Ecosystem, Partners, Resellers and SI
QAD is looking to grow its indirect channel. In July 2021it announced it is actively looking for partners to expand its QAD Global Partner ecosystem. The QAD Global Partner Network includes channel partners, technology partners, solution partners, and consulting and system integrator partners that work with QAD to provide a wide range of sales, support, complementary solutions and services to QAD customers worldwide. The QAD Global Partner Network has over 100 partners that complement QAD’s offerings and help QAD to deliver innovative solutions, services and technology that help its customers as they modernize their business processes, manage disruption and leverage them for competitive advantage. The program offers several partnership types, including: Channel partners - Resell QAD Adaptive Applications. Consulting and System Integration partners - Provide professional services. Solution partners - Provide complementary solutions to expand QAD's portfolio. Technology partners - Produce the hardware and software that QAD provides with its solutions.
To this end, QAD has recently signed on several new partners. Jun. 15, 2021QAD announced it has signed a partnership agreement with Virtual Integrated Analytics Solutions Mexico (VIAS) to sell QAD Adaptive ERP and other QAD solutions in Mexico. Jun. 9, 2021QAD announced it has signed a system integrator agreement with JK Tech. JK Tech is an IT consulting company offering customized software development and IT services. Under the terms of the partnership, JK Tech will implement the QAD Adaptive Applications portfolio of solutions including QAD Adaptive ERP. Jun. 2, 2021QAD announced that it has signed a partnership agreement with Bangkok-based T.C.C. Technology Co., Ltd. (TCCtech), making TCCtech a channel partner in Thailand. Apr. 14, 2021announced announced that it has signed a partnership agreement with CERAMTECH Consultaria, designating CERAMTECH as a channel partner in Brazil.
QAD Inc. Cloud Infrastructure Insights
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