Executive Summary This project proposal introduces application of QAD - a leading provider of industry-specific e-business software and services to manufacturers in China. In the first chapter the importance and necessity of utilizing information technology and information systems as core competence is explained. Furthermore, the chapter introduces some challenges with which the Chinese enterprises are confronting, and also the key strategies they adopted to respond to these challenges. The second chapter outlines the research objectives and the issues that will be addressed in the Project. The basic question of the project is: how is QAD being used in manufacturing in China, to help maximize revenue, efficiency, service quality & customer satisfaction, and to minimize cost, time & investment risk, eventually realize cost strategies. A detailed introduction for the QAD is provided, moreover, a real case proven how the QAD’s ERP software help a oversea company improve productivity and customer service is also offered in the chapter. The third chapter explains the methodology of the project. A survey form is designed with 22 questions inside and mailed to 100 managers in foreign invested and state owned enterprises in January 2000 for the research. The chapter also states the aim and response rate of the survey. The appropriate literature is reviewed and discussed in the fourth chapter. It contains Supply Chain Management (SCM) overview, introduction for Material Requirement Planning (MRP), introduction of Manufacturing Resource Planning (MRPII), and introduction of Enterprise Resource Planning (ERP). The fifth chapter demonstrates analysis process for 22 questions in the survey form based on respondents’ feedback. The analysis separates in three parts which are Part 1. Background of Respondents, Part 2. Use of Software and Part 3. QAD Survey. The sixth chapter explains the lessons learned from the survey. From the feedback surveyed forms, it is known that QAD is the most utilized software among all of the researched companies, and Avon , General Motor , Colgate Palmolive , International Paint, Emerson Energy System and AT&T Wireless are the QAD key customers in China. Beyond the survey, interviews with the Materials Managers / Logistics Managers in 3 of these companies are conducted. The managers’ opinions regarding using QAD are introduced in the chapter. The seventh chapter outlines the conclusions of the project. As a leading provider, QAD predicts that in the next five year, the manufacturer would be further developed by the software solution that integrates manufacturing, logistics, finance and service, moreover, QAD forecasts the manufacturing development trends in the new millennium. The trends are concluded in detailed in the chapter. The eighth chapter gives some recommendations to Chinese enterprises who are currently considering transition to a new stage of using information systems. Three phases to implement this project are: pre-implementation, implementation and post-implementation. The ninth chapter provides a review of the research project. Therefore, the whole process is analyzed and evaluated considering its strengths and weakness with particular regard to the effectiveness of the used methodology. The tenth chapter lists 20 books which are for reference to complete this dissertation. The last chapter displays the questionnaire used for the survey.