News | April 19, 2006

VKI Technologies Brews Potential For Business Expansion With Enterprise Technology From QAD

Coffee-Brewing Equipment Maker Implements Software for Advanced Manufacturing

VKI Technologies, a global leader in the design, manufacture and distribution of coffee-making equipment and related products, is taking steps to drive more cost out of its supply chain and manufacturing operations and establish a foundation for building its business in new markets, the company announced today.

VKI Technologies, based in Quebec, is deploying QAD MFG/PRO eB2 technology from California-based enterprise software provider QAD Inc. (NASDAQ: QADI), to support the company's "lean" manufacturing initiatives and related advanced production techniques.

VKI Technologies produces coffee-brewing equipment for the North American market and licenses its patented technology to equipment manufacturers in Europe and Japan. According to Robert Primeau, director, Business Strategies and Customer Support, VKI is focused on eliminating parallel systems and expanding use of QAD software to ensure a consistent standard for enterprise operations – from finance to the factory floor and supply chain, and in the future, customer self-service.

VKI's manufacturing facilities encompass several operational processes and just-in-time (JIT) techniques such as mix model assembly lines, point-of-use storage, cellular manufacturing in its sheet metal department and Kanban card-controlled production, all of which have increased the company's manufacturing flexibility and reduced its response time for specific customer orders.

"VKI Technologies is committed to leading-edge manufacturing methods, and QAD MFG/PRO provides a solid foundation for our lean manufacturing and ‘continuous improvement' initiatives," said Primeau. "QAD software has provided VKI Technologies with the ERP and manufacturing data we need to make strategic decisions for 15 years, and we anticipate the technology will continue to be integral to our success as our business advances."

A Platform for the Future
Timely information from its QAD system has enabled VKI Technologies to implement business scorecards that comprise nearly 30 key performance indicators (KPIs) including financial, technical and customer support information on a daily basis. This insight enables executives to adjust manufacturing processes to address issues and improve product quality. To that end, QAD technology will help the manufacturer with product lot and model tracking, which are important to warranty and customer service – and even to the development of successful new products.

VKI Technologies has a global clientele, serving customers of its parent company, Canada-based coffee roaster Van Houtte Café (TSE: VH.SV), and working directly with companies primarily located in North America. As VKI Technologies seeks to expand its direct business in Europe, Primeau anticipates QAD MFG/PRO software will help control internal procedures.

Looking ahead, VKI Technologies will use data in its QAD system to facilitate customer self-service via the Internet. The manufacturer also will evaluate QAD Supply Visualization to automate its Kanban system and specific events, such as signaling stock minimums and providing up-to-date Kanban status to suppliers. Primeau said manual and signal-based systems, in combination with automation, will help VKI Technologies meet on-time delivery targets and production planning needs.

"Companies such as VKI Technologies are taking advantage of the flexibility of their QAD investments in order to support the advanced manufacturing techniques that will give them a competitive edge now and into the future," said Pamela Lopker, chairman and president, QAD. "For more than 25 years we've focused on applying the best thinking in manufacturing theory and leading technology to help manufacturers of all sizes maintain world-class enterprise operations."

About VKI Technologies
Established in 1947, VKI Technologies is a world leader in the design, manufacture and distribution of advanced coffee systems based on diverse, fresh-brew technologies. Attentive to the evolving tastes of the industry as well as the needs of its business partners, VKI increased its line of products and services reaffirming its status as leader in the industry. The development of integrated and innovative products and services ensures its distinct competitive edge on the national, as well as on the international, markets.

About Van Houtte
Founded in 1919, Van Houtte is one of North America's leading gourmet coffee roasters, marketers and distributors. The Company roasts and markets its gourmet coffees across Canada and the U.S. through distribution channels that include coffee services, retail stores, café-bistros and online shopping.

About QAD
QAD is a leading provider of enterprise applications for global manufacturing companies. 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. Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and life science products use QAD applications at approximately 5,500 licensed sites in more than 90 countries and in as many as 27 languages. For more information about QAD, telephone +1 805 684 6614, or visit the QAD Web site at: www.qad.com.