1. QAD Proprietary Direct Store Delivery & QAD’s Consumer Centric Solution Hank Canitz: Senior Director Industry Marketing - QAD Robert Hochberg: President & CEO - NCS

2. QAD Proprietary Agenda  Top consumer product manufacturing issues  Direct Store Delivery for QAD Customers  QAD’s consumer centric solution 35,000 New Products Annually 62 Days of Supply (Average) 50% - 70% Forecast Accuracy 15% of Trade Promotions Turn a Profit 8% - 15% Out of Stock, 20% During Promotions Typical Dilemmas of a Customer-Centric Manufacturer

3. QAD Proprietary Top 4 Consumer Product Manufacturing Issues  Ensuring global product safety & quality  Complying with sustainability (Green) regulations and customer demands  Enabling the business imperative to do more with less  Meeting more demanding customer requirements – Lower Costs – Fresher product – Higher fill-rate at the shelf

4. QAD Proprietary Consumer Centric Approach  “A system of technologies and processes that senses and reacts to real-time demand across a network of customers, suppliers, and employees” Outside In Information Inside Out Information

5. QAD Proprietary Balancing Push – Pull Dynamics  A consumer centric approach balances the pull from customers with a push from the supply chain. Product & Service Innovation Pull Customers, Buyers, Users, & Consumers Channel Demand & Demand Management Demand Visibility User/ Consumer/ Demand Insights Suppliers & Partners Push Reliable, Profitable Response from Supply Based on Demand Supply Visibility decoupling Demand Translation & Trade Offs Integrated Strategy, Business & Value Network Planning

6. QAD Proprietary Average = 10 days The Time to Sense True Customer Demand Q. How long does it take your organization to sense true customer demand in your primary value network? N = 164 manufacturers

7. QAD Proprietary 1- 30% out of stock rates at the SKU-location level depending on product & characteristics Latency in Sensing Customer Demand Manufacturer mentioned by “name” in stock out

8. QAD Proprietary Deliver 20% More Perfect Orders… 68% 90% Laggards Leaders …hold a third less inventory… Laggards Leaders 72 Days 54 Days …have lower SC costs equal to 5% of revenue 26% 21% Laggards Leaders The Value of a Consumer Centric Strategy

9. QAD Proprietary QAD’s Consumer Centric Solution Suite SupplierManufacturerDistributorRetailerConsumer Supply Visualization Product Development Lean Manufacturing Trade Promotion Management Demand Management S&OP PLAN Direct Store Delivery Customer Collaboration Global Data Synchronization Automated Data Collection Vendor Managed Inventory POS Data & Analytics PULL Supplier DistributorRetailer Customer Manufacturer To succeed today and into the future consumer products manufacturers must ensure their products are available when and where customers want them. Manufacturers can’t assume that customers will come back if their product is out of stock. Success is not assured operating with the average supply chain. Customer Relationship Management BI

10. QAD Proprietary Product Distribution Strategies 10 Source: FMCG Retailers are Becoming Demand Driven- AMR Research, April 2008

11. QAD Proprietary 11 DSD Industry Issues & Drivers  Industry analysts estimate that half of the top 10 packaged foods at retail today are delivered by DSD  Many DSD categories are among the highest revenue and margin performers  DSD is becoming increasingly critical to maintaining high sales levels in the industry  Trends expected to continue as consumer demand for "fresh" requires increased speed of product from manufacturer to retailer shelf  DSD presents a challenge to the industry’s SC – Extremely high turns drive a high frequency of deliveries and merchandising services calls to individual stores – Extremely high impulse buying makes forecasting difficult – Large number of invoices and other in-store transactions

12. QAD Proprietary Why Direct Store Delivery?  Manage and maintain store shelf inventory  Interface with store mgt & consumers multiple times/week  Move product to market faster  Lower costs for yourself and your retail partners  Provide a competitive speed edge against the retailer’s own logistics services  Facilitate more effective promotions  Provide better package integrity & product safety  Effectively compete against growing % of store brands  Sense & react faster to customer demand changes “The Last Mile is the Hardest”

13. QAD Proprietary Direct Store Delivery for QAD Customers Robert Hochberg, President and CEO, NCS Numeric Computer Systems, Inc www.ncssuite.com Your Solution Partner For In-Store Direct Store Delivery Execution

14. QAD Proprietary Company History  NCS - established more than 25 years ago as a total software solution provider for the Fast Moving Consumer Goods (FMCG).  Headquartered in New York with additional sales, support and development locations in San Francisco, Dallas, Sydney, Jakarta, Auckland, & San Juan  Primary business has been to automate the ‘Order to Cash’ Sales & Distribution cycle for FMCG firms including front end integration to back office ERP.  Successfully services a diverse group of FMCG companies.

15. QAD Proprietary Source: AMR Research powered by ChangeWave Driving Principles for I/T Budget Spending, November 2009

16. QAD Proprietary eRMS Enables Quicker Information Movement N=22

17. QAD Proprietary FMCG Firms Face Unique Challenges Unique business dynamics  High volume of low value transactions  Extraordinary product cycle velocity  Challenging profit margins  Direct store delivery (DSD)  Cash collections & returnables policies  Multiple points of inventory control  Varied and fragmented sales channels  Promotion flexibility and tracking  Route Accounting & Control  Container Management

18. QAD Proprietary What kinds of companies are FMGC?  Baked Goods (Breads, Cakes)  Beverage (Beer, Juice, Liquor, Soda, Water)  Coffee  Dairy (Cheese, Fluid Milk, Ice Cream)  Food Service  Meats (Beef, Chicken, Pork)  Pet Food  Tobacco  Snack (Confectionary, Salty Snacks)  Greeting Cards  Automotive Aftermarket  Flowers  Welding Supplies  Other

19. QAD Proprietary Examples of NCS Successes  Integrated to UPS MobileCast for real time delivery fleet communications for Northeast US based full service dairy manufacturer  Integrated e-Commerce applications for a leading US dairy manufacturer  Shortened order cycle time for an Indonesian division of a US based manufacturer  Assisted with centralizing business functions for a NE US based dairy and ice cream company.  Enabled GPS tracking of hazardous materials for a NE US based Gas and Welding supplier.  Streamlined intercompany transfers for one of the largest independent dairy and juice manufacturers with distribution throughout eastern United States.  Facilitated control of independent operator activities for a leading US based manufacturer of cakes, cookies, donuts, breads English muffins.  Enabled scan based trading for US leading natural health beverage company.

20. QAD Proprietary NCS Customer Success Story  Customer Background: – Customer is a full line dairy and food distributor with 100 trucks on the road each day – Wanted to track drivers real time with GPS coordinates – Wanted do to full Route Accounting – This solution needed two devices and two data plans and duplicated work – Needed to use both systems at store Level  Solution: – Went to the GPS solution provider (UPS Mobile Cast) and integrated data to their servers using NCS advanced technology and mobility solution  Results: – The design was one system/one device, which led to reduced hardware costs, wireless radios and labor savings while increasing productivity and accuracy at store and route level  Savings were greater than $150K annually

21. QAD Proprietary NCS Customer Success Story  Customer Background: – Customer is the leading provider of premium juices in the country – Retailers were demanding a new trade arrangement that the provider couldn’t support and new prospects were demanding a solution that they didn’t have  Solution: – The solution was to install Xpress Route which is fully Scan Based Trading capable – eRMS Route Accounting was able to support the difference between consignment through the cash register and a sale at back door  Results: – They were able to attract the largest retailer in Michigan with this solution and were able to keep their relationship with several chains that they would have otherwise lost

22. QAD Proprietary NCS Customers by Category and Region

23. QAD Proprietary QAD-NCS Solution Diagram QAD Xpedium xMobility xLink QXtend

24. QAD Proprietary NCS Solution Suite The Solution Set has three different components: eRMS, xLink & Xpedium xMobility eRMS xLink Xpedium xMobility

25. QAD Proprietary eRMS Route Management Solution  Route Planning  Route Balancing – UPS Mobile Cast – Turn by Turn Navigation  Route Settlement  Cash  Inventory  Route Optimization  Trade Assets  Containers and Carts  Merchandising Support  Surveys  In-Store Business Reviews

26. QAD Proprietary Example of eRMS Efficient Routing  Optimized Routing  Route Balancing  Weight  Cube  Stops  Time  Mileage

27. QAD Proprietary Example of eRMS Route Settlement  Route Level Inventory  Van and Inventory Control  Cash Collections  Driver Settlement  Van Settlement

28. QAD Proprietary xLink Middleware Components  Mobility Connector: Mobile Middleware DB  Mobility Console: DB Extension, Doc Retrieval, Monitoring, Scheduling  Mobility Sync: Authentication, Encryption, Security, Wireless/Wired Communications

29. QAD Proprietary Xpedium xMobility  xMobility Development Suite: – Mobility Framework: Services – Mobility Designer: Report Writer, Screen Writer – Mobility Configurator: Rules, Work Flow  Xpedium Pre-Configured Applications: – xRoute, xMerchandiser, xPre-Sales, xVending

30. QAD Proprietary Technology is Microsoft Centric Next Generation Back Office Technology  Multiple User Interface – Browser, Text  Platform Independent – Windows, System-I, UX/Linux  Database Independent – SQLServer, DB2, Oracle  Scalable – Stateless Next Generation Mobile Technology  Service Oriented Architecture  C#.NET  SQLServer CE  Separation of Process and Presentation  Third Party Interfaces – UPS Logistics MobileCast – Turn by Turn  Advanced Middleware  XML Data  Document Management  GPS Integration  Fleet Management

31. QAD Proprietary Xpedium xMobility Customer Detail Screen on a Mobile Device  Displays the Customer Profile details: – Customer Messages – Fully Custom Detail Fields – Delivery Sequence – Unpaid Invoices – Directions – Inventory – History – No Call Reason

32. QAD Proprietary Xpedium xMobility Example  Supports Multiple Order Types: – Pre Sold Deliveries – Sell Through Orders – Build Up Orders – Forecast Orders – Peddle Orders  Detail View – Customer Price – Product Details – Line Discount  Support for: – Merchandising – Auditing – Surveys – Customer Business Reviews

33. QAD Proprietary QAD Interface Cust Order Load ItemCust Item Price Prom Price Prom Order Load QAD eRMS QAD Invoicing

34. QAD Proprietary NCS is a perfectly matched solution partner for QAD  Experienced Professional Staff  Deep Industry Experience  Advanced Technology  Implementation Methodology  Web Based Tracking System  Strong Help Desk and Customer Support  Multi-Regional Experience

35. QAD Proprietary QAD’s Consumer Centric Solution Hank Canitz, Sr. Director Marketing - QAD

36. QAD Proprietary QAD Alignment to the Consumer Products Industry Complete Solution for Your Industry

37. QAD Proprietary QAD’s Consumer Centric Solution Suite SupplierManufacturerDistributorRetailerConsumer Supply Visualization Product Development Lean Manufacturing Trade Promotion Management Demand Management S&OP PLAN Direct Store Delivery Customer Collaboration Global Data Synchronization Automated Data Collection Vendor Managed Inventory POS Data & Analytics PULL Supplier DistributorRetailer Customer Manufacturer Customer Relationship Management BI

38. QAD Proprietary 38 Supply Chain Portal (SV): Supplier Quality  Closed loop supplier performance  Collaboration via shared scorecards  Dashboard – Regional metrics – Service levels – Stock outs/overages  Supplier risk assessment – Non-conformance – Corrective action – Inactivate  Ability to link to non QAD systems “Supply chain visibility is the most important application investment area for supply chain strategies“ Aberdeen Group, September 2008

39. QAD Proprietary 39 Supplier Quality - Dashboard

40. QAD Proprietary Kanban & Process Sizing Workbenches

41. QAD Proprietary QAD Business Intelligence 3.0 Browser-based delivery in an industry-standard portal framework Queries, reports, dashboards and scorecards Fully customizable and extensible via QAD-supplied and customer-developed views. Provides full support for Cognos and other third-party BI tools “Value -- for customers, shareholders and employees -- is either created, compromised or destroyed every time a decision is made inside an organization.” Aberdeen Research

42. QAD Proprietary Demand Management Suite  V6.0 Demand Management Engine – (Availability September 2010) – Full update of underlying code base to support unicode requirements – New user interface with ribbon style menus and on-the-fly filters – Improved usability based on customer feedback including; filters & exceptions, profiles & lifecycle planning  V6.0 Collaborative Portal – (Availability Sept 2010) – Update of user interface to improve configurability and look and feel of the display – Expanded formula and hierarchical capabilities “QAD Demand Management has improved our forecast accuracy by 50% percent. We have seen slight improvements in customer service, but the biggest improvement for RF industries is streamlining to get the right stock at the right time.” Tony MacGregor, National Operations Manager, RF Industries

43. QAD Proprietary Recommended Actions  Visit the NCS Booth  Contact Robert or myself for more information  Schedule an on-site discovery session to let us help you develop a business case for a turn-key DSD solution or other consumer centric improvements. 1 2 3 Rapid value assessment Map QAD potential solutions to business goals, strategies, tactics & processes Deeper ROI Potential Analysis Recommendation 4

44. QAD Proprietary Where to go for assistance  Robert Hochberg, President and CEO – Robert.Hochberg@ncssuite.com Robert.Hochberg@ncssuite.com – (631) 486-9000 x301 – (917) 754-1836 (m)  Hank Canitz – Sr. Director Industry Marketing – HCC@QAD.com HCC@QAD.com – 1-720-238-7439

45. QAD Proprietary Thank You & Questions