District Business Development Program Dominic J. Longo, CSCP Director, Corporate Services John P. Bowler, CSCP District Business Development Manager

2 © APICS Confidential and Proprietary Housekeeping: For A Productive Event! Questions: Due to the amount of content we want to cover, please submit your questions using the webinar toolbar. Questions not answered during the broadcast, will be answered offline. You will receive an with a a response to your question. So Ask Away!

3 © APICS Confidential and Proprietary Upcoming Northeast District Events September 12-13, 2014 District meeting Burlington, VT For more information visit the APICS Northeast District website

4 © APICS Confidential and Proprietary

5 © APICS Confidential and Proprietary Leadership Summit Date: Saturday, October 18 Cost: Free of Charge Use the following registration codes to receive the chapter volunteer and instructor discount Code NOLAJ1Leadership Summit plus full conference - $949 rate NOLAJLeadership Summit only, free of charge

Our Presenters Dominic J. Longo, CSCP Director, Corporate Services John P. Bowler, CSCP District Business Development Manager

7 © APICS Confidential and Proprietary District Business Development Manager Program Goals  Respond to Chapter need for additional sales support  Increase adoption of APICS products/services  Strengthen/grow North American Chapters  Work collaboratively  Capitalize on Corporate Services infrastructure and resources  Deliver excellent service to – Supply chain professionals – Corporate sponsors

8 © APICS Confidential and Proprietary The Corporate Customer  Conduit to the individual professional  Source of APICS members  Sponsor of APICS education and certification  Driven through bottom line impact  Employer

9 © APICS Confidential and Proprietary The District Business Development Manager  This person is: – Full-time Sales Professional – Sells instruction, materials, certifications and membership on behalf of Chapters in the District – Collaborates directly with District Leadership and Chapter Leadership – Offers full-service, partial service and ‘opt out’  John Bowler, CSCP (started 8/11/2014) – Located within the Mid-Atlantic or Northeast - traveling extensively – Employed by APICS – Reporting to Corporate

10 © APICS Confidential and Proprietary Benefits to Chapters  Growth – “Expand Chapter Footprint Locally” – Membership – Revenue – Visibility  Expanded relationships with corporate customers  Professional sales support  Increased focus on core strengths  No Cost to the Chapter  Approved by APICS Board of Directors

11 © APICS Confidential and Proprietary We can Accomplish More by Working Together Local Knowledge Local Relationship Lead Generation Local Community Instruction Infrastructure Know How B2B Global Coordination DBDM APICS District & APICS Chapters APICS Channel Services

12 © APICS Confidential and Proprietary Working Together – Full Service Program (Option A) Districts Chapters DBDM Three-way Lead Generation Initial Contact w/Prospect Quote & Negotiate Contract & Fulfillment Invoicing & Collections Revenue Flow After Sale Support Two-way Relationship Management On-going Dialogue

13 © APICS Confidential and Proprietary Working Together – Partial Service Program (Option B) Districts Chapters DBDM Three-way Lead Generation Initial Contact w/Prospect Quote & Negotiate Contract & Fulfillment Invoicing & Collections Revenue Flow After Sale Support Two-way Relationship Management On-going Dialogue

14 © APICS Confidential and Proprietary Option A:Option B:Option C: Full Service Program Partial Service Program Opt–Out Develop a local sales strategy and generate leads Setup phone/face-to-face meetings with prospective clients Manage the negotiation process and prepare quotes Generate legally sound contracts Gather resumes from the local chapter’s instructor pool. Execute instructor agreement and payment Coordinate/finalize training dates Order/ship courseware and participant materials Process membership and certification exam credit orders Process instructor invoices and expense reports Troubleshoot collection issues Coordinate efforts to follow up with the clients Promote/sell other APICS products Invite clients to attend local chapter activities and become involved as a volunteer Upfront costs Funded by Corporate Funded by Chapter Opt-out at any time Program Summary

15 © APICS Confidential and Proprietary Types of Opportunities  Cross-Chapter Engagements – National or Global Opportunity – Training needs at multiple company locations – Sales opportunity managed centrally by APICS Corporate  Single Chapter Engagements – Local Opportunity – Training needs only at one company site – Sales opportunity managed locally by DBDM and Chapter “Current Model” “Alternate Model”

16 © APICS Confidential and Proprietary BSCM - Onsite Training Cross-Chapter Number of Students 10 Price $10,500 Participant GuidesCorporate Introduction to Materials ManagementCorporate DictionaryBenefit Instructor Fees$1,000$4,000 Classroom Material (pens, paper, tent cards, magazine)Corporate ShippingCorporate Revenue Share for Chapter$ Person Enterprise Membership (billed Separately)$200$2, Exam Credits (billed separately)$165$1,650 Revenue Example Single Chapter 10 $10,500 $900 $980 $0 $4,000 $100 $50 $4,470 $2,000 $1,650 Current Alternate

17 © APICS Confidential and Proprietary Option A:Option B:Option C: Full Service Program Partial Service Program Opt–Out Develop a local sales strategy and generate leads Setup phone/face-to-face meetings with prospective clients Manage the negotiation process and prepare quotes Generate legally sound contracts Gather resumes from the local chapter’s instructor pool. Execute instructor agreement and payment Coordinate/finalize training dates Order/ship courseware and participant materials Process membership and certification exam credit orders Process instructor invoices and expense reports Troubleshoot collection issues Coordinate efforts to follow up with the clients Promote/sell other APICS products Invite clients to attend local chapter activities and become involved as a volunteer Upfront costs Funded by Corporate Funded by Chapter Opt-out at any time Revenue : Whether current or alternate Same Program Summary

Other Common Scenarios

19 © APICS Confidential and Proprietary Material Only Orders (CSCP)  The client is interested in purchasing Learning Systems for self-study  DBDM will quote standard rates (both member and non-member)  Client will be invoice by DBDM for the appropriate rate  Once final payment is received, funds will be transferred to the Chapter  Chapter receives difference between “Chapter Rate” and the “amount paid by the client” – Client Rate: $895 (rate for orders of 2-25) – Chapter Rate; $615 (rate for all L.S. ordered) – Remitted to Chapter$280 per L.S.

20 © APICS Confidential and Proprietary What happens when a single-chapter opportunity becomes a cross chapter opportunity?  The possibility exists that a relationship that starts out as “Single Chapter” will evolve into a “Cross-Chapter” relationship  The original location will be treated as a Single Chapter and all future locations as Cross-Chapter – Single-ChapterAlternate Revenue Model – Cross-ChapterCurrent Revenue Model

21 © APICS Confidential and Proprietary Frequently Asked Questions  What is the cost to chapters?  No cost, the service is free of charge.  Our chapter does not have good leads, can we still participate in the program?  Yes, the District Business Development Manager will meet with chapter leaders to evaluate the market, and jointly develop a local strategy.  If our chapter decides to participate, can we still conduct classes on our own, without involving APICS Corporate?  Yes, you can still conduct classes on your own.  What are the criteria for selecting instructors for classes? Will the local chapter have an opportunity to recommend instructors?  The criteria is established by the client.  DBDM contacts the closest chapter(s) to the training location  The chapter submits a pool of resumes, which are forwarded on to the client  We will only offer instructors who are listed as a part of the APICS IDP  Ultimately, the client selects an instructor based on their credentials & availability

Questions?

Conclusion

24 © APICS Confidential and Proprietary Final Thoughts  Full-service, partial-service and opt-out  DBDM 100% focused on Chapter sales  Collaboration and agreement throughout the process  Standardized pricing with Chapter input on local negotiations  Feedback welcome

Appendix APICS Pricing

26 © APICS Confidential and Proprietary On Site and On Line Course Pricing On SiteStudents Per Class Course CPIM Module 1 (4 day delivery)$10,500$11,800$13,900$16,000 CPIM Module 2 (4 day delivery)$9,300$10,000$11,500$13,000 CPIM Module 3 (4 day delivery)$9,300$10,000$11,500$13,000 CPIM Module 4 (4 day delivery)$9,300$10,000$11,500$13,000 CPIM Module 5 (4 day delivery)$9,300$10,000$11,500$13,000 CSCP (6 day delivery)$12,000 n/a On LineStudents Per Class Course CPIM Module 1 (10 week delivery)$1,130$1,080$1,040$1,000 CPIM Module 2 (9 week delivery)$1,009$959$919$879 CPIM Module 3 (9 week delivery)$1,009$959$919$879 CPIM Module 4 (9 week delivery)$1,009$959$919$879 CPIM Module 5 (9 week delivery)$1,009$959$919$879 On LineStudents Per Class Course8-15 CSCP (12 week delivery)$2,100

27 © APICS Confidential and Proprietary Membership and Courseware Pricing APICS Membership TypeNumber of MembersPrice Per Member Tier I5-24$200 Tier II *25-50$190 Tier III *51+$180 * Once a company reaches 25 Enterprise professional members they can add additional Enterprise e-Professional Members at a rate of $125 Notes: Corporation can control which employees have access to their Enterprise Membership Memberships are activated upon payment Membership rates are per year per person Courseware - CPIM Chapter Basics Participant guides$115 $103.50$97.75 $105 APICS Dictionary $30 $27.50 $25.50 $30 Intro to Materials Management$98 $88.20$83.30 $98 Courseware - CSCP Learning System$945$895$845$795$745

28 © APICS Confidential and Proprietary  Regular meetings will be held with the District Managers  DBDM’s will meet with Chapter leaders to evaluate the market – Understand the local market and history with corporates – Understand leads that are known to the Chapter – Develop a local strategy and target list  Chapters will be notified about all leads in progress  Regular communication with DFA’s re: district issues On-going Dialogue

29 © APICS Confidential and Proprietary  APICS B2B efforts will also generate local leads for the DBDM’s  DBDM will develop the local area through traditional sales techniques  Chapters should continue their independent efforts to generate leads Keep in mind: Your existing corporate contacts are an excellent source of new opportunities for new leads – Suppliers, acquaintances, customers – Other divisions who may need APICS in other parts of the country Three-way Lead Generation

30 © APICS Confidential and Proprietary  DBDM will set-up phone/face-to-face meetings with prospective clients  These meetings will focus on: – Understanding client needs – Presenting the APICS products/services to fulfill those needs  These can include the full suite of APICS products & services – Membership, Training, Certification, Books/Material, Conferences  DBDM will arrange to introduce a leader from the local Chapter Initial Contact w/Prospect

31 © APICS Confidential and Proprietary  The initial quotation will be for the APICS Published Rates – DBDM will have some latitude to negotiate price – Any further negotiation will be in consultation with the Chapter  Professional quotations will be prepared and sent to the client  Chapter Leaders will get a copy of the quotation  Ongoing dialogue with the client will be managed by the DBDM – Chapter leaders will continue to be updated on the progression  Please keep in mind that it can be several weeks/months before a clients gets full approval and funding to move forward Quote & Negotiate

32 © APICS Confidential and Proprietary  All training engagements require a signed contract – Corporate has contracts that have been approved by Counsel – They are regularly used with corporate clients  Legal staff is available at APICS to the DBDM – Client may want to make changes to our standard agreements – They may also want to use their own agreement which will need a full legal review  Instructor options are not offered until the agreement is executed  Contracts are signed at the corporate level Contracting Included in Full Service Option

33 © APICS Confidential and Proprietary  Fulfillment covers a number of activities for Onsite Classes – Gather instructor candidates – Present instructors to the client – Execute Instructor Agreement – Coordinate/Finalize dates – Order/Ship courseware – Order other material – Process membership orders – Process certification orders (Exam Credits) – Process instructor invoices and expense reports  All of these services are provided by the DBDM ( in the full service option) Fulfillment Included in Full Service Option

34 © APICS Confidential and Proprietary  Invoicing will be completed by the DBDM  Instructors are paid upon the completion of the course  Collections will be managed by the DBDM Invoicing & Collections Included in Full Service Option

35 © APICS Confidential and Proprietary  Funds will be distributed to the Chapter after the client remits payment  It’s common that client payment to take 30 to 60 days  Funds are distributed according to the following schedule Revenue Flow Included in Full Service Option

36 © APICS Confidential and Proprietary  The DBDM & Chapter will coordinate efforts to follow up with the client – The relationship doesn’t end after the engagement is complete – Neither does the selling  Opportunities exist to – Schedule the next class (Module 2,3,4,5) – Promote/Sell other products (certification, conferences, etc.)  Invite client to attend Chapter activities or become involved as a volunteer  Develop revenue opportunities outside the local area After Sale Support Two-way Relationship Management

37 © APICS Confidential and Proprietary Contact Dominic J. Longo, CSCP Director, Corporate Services APICS Direct John P. Bowler, CSCP District Business Development Manager APICS