Further Analysis: Saturno-TP's Selection of QAD ERP

I am quite familiar with the Russian auto industry, and thus I enjoyed analyzing the transaction that recently took place involving a big player in the automobile industry in Russian manufacturing hub Togliatti, whereby automotive industry supplier, Russia-based Saturno-TP, became a client of ERP software vendor QAD (also see yesterday's TEC blog post).

Despite global industry depression, the automobile manufacturing industry in Russia is developing at an extremely fast pace, only comparable with China and a small number of other Asian countries. All major global auto manufacturers already established their assembly plants in the country three to six years ago, and now it is time for their parts and components suppliers from around the world to roll out their manufacturing facilities in Russia too. Although there is an advantage that comes with being local, Russian auto suppliers are experiencing tremendous pressure from car manufacturers with regards to quality and compliance with world-level standards in manufacturing and logistics business processes. This is quite a painful process overall that is quite well suited to the advantages that ERP software can provide; adopting a world-class ERP system would allow managing a company according to global manufacturing standards of the industry.

This was exactly the case with Saturno-TP. Being a conveyor supplier for multiple brands such as Renault, Ford, GM-AVTOVAZ, that impose obligations to comply with quality and industry standards such as ISO, Materials Management Operations Guidelines/Logistics Evaluation (MMOG/LE), and many others, to have an ERP system in place that is capable of supporting such standards would be a good competitive advantage and a base for further business development.

QAD, for its part, is one of only a few automotive industry ERP vendors who are deeply involved in the automotive manufacturing business. QAD is a member of both major car industry organizations in the world, the North American Automotive Industry Action Group (AIAG) and the European Odette International, that develop and promote standards for automotive manufacturing and supply chain businesses globally. QAD has developed MMOG/LE-based process maps for internal business processes assessment and improvement along with a complete solution enabling suppliers to meet stringent customer requirements.

I would assume that this factor, along with Russian language requirements and complex localized accounting standards, played a critical role in Saturno-TP's selection of QAD's solution. Generally speaking, participation of ERP software vendors in vertical industry initiatives and membership in relevant organizations and industry associations can be a high weight factor and definitely should be considered during the software selection process.
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