APICS District Meeting Update May 2015

2 © APICS Confidential and Proprietary APICS Vision and Mission APICS Vision Statement APICS—the world’s leading community for end-to-end supply chain excellence. APICS Mission Fostering the advancement of end-to-end supply chain management through a body of knowledge, innovative research, systems and methods to create value for customers, members and organizations.

3 © APICS Confidential and Proprietary Agenda  AST&L Update  North American Channel Partner Strategy  APICS Product Update

AST&L Merger Update

5 © APICS Confidential and Proprietary American Society of Transportation and Logistics to Merge with APICS Combination Extends Expertise of Global Leader in Supply Chain Research, Education and Certification Programs

6 © APICS Confidential and Proprietary Meet AST&L AST&L is the professional organization for transportation and logistics professionals.  Founded in 1946  800 members  300 student members  Research journal  Designations – Certified in Transportation and Logistics (CTL) began in 1948 – Global Logistics Associate (GLA) – Professional Designation in Logistics and Supply Chain Management (PLS). APICS has managed the back office operations of AST&L since 2013.

7 © APICS Confidential and Proprietary Why Are We Better Together? The merger unites two industry leaders with complementary offerings to expand, extend and deepen the APICS end-to-end supply chain and logistics body of knowledge that fuels global supply chain research, education and certification programs. APICS and AST&L realize that all aspects of supply chain are increasingly integrated. Education, training and credential programs that offer an end-to-end supply chain perspective are critical to help professionals advance and organizations thrive. Together we have more capabilities to address two of the most important topics in the global economy today ─ developing supply chain talent and elevating supply chain performance.

8 © APICS Confidential and Proprietary Strategic Rationale of the Combination 1. Creates the most complete supply chain body of knowledge 2. Ensures investment, improvement and continued relevancy of transportation and logistics content 3. Strengthens APICS competitive position and platform for growth This combination is poised to benefit members, customers, partners, and the supply chain community in several ways. Specifically, the merger:

9 © APICS Confidential and Proprietary Additional Considerations  As the recognized standard in operations and supply chain industry certifications, APICS is well positioned to offer a transportation and logistics credential.  AST&L and APICS certification programs have always been closely aligned. APICS designees are able to waive up to two Certified in Transportation and Logistics (CTL) exam modules.  APICS has managed the “back office” operations of AST&L since 2013.

10 © APICS Confidential and Proprietary Timeline of Activities Timeline  May 2: APICS Board approval  June 1: AST&L member voting begins  June 15: AST&L member voting ends  Mid-July: Legal filings will be completed  December: Integration complete Q: What’s Next? A: The merger needs to be ratified by the AST&L members. The voting window opens on June 1 and closes on June 15. Following an affirmative AST&L member vote, legal documents will be filed. A unification committee made recommendations to the APICS board and APICS staff will begin to work on these recommendations.

North American Channel Strategy Operating Model Change

12 © APICS Confidential and Proprietary Why Is This Change Happening Objective: Build a North America channel to market that meets the needs of end-customers and the companies in which they work  Brings APICS to more supply chain professionals and companies, fulfill unmet market potential  Recognizes, encourages channel partner market success  Provides purchasing flexibility to the end-customers buying APICS products and services  Simplifies and globally standardizes business (channel) models

13 © APICS Confidential and Proprietary Development of Structure Recommendations/Expected Impact  Implement a tiered channel structure based on behavioral and financial performance: – Expected Impact: Tier structure will incentivize high performing chapters to do more and motivate underperforming chapters to improve.  Implement new channels:. Training organizations or consulting firms. – Expected Impact: New channel partners will expand coverage, give companies alternative ways to buy and provide (healthy) competition in the marketplace.  Allow APICS qualified instructors to affiliate with multiple channels – Expected Impact: Instructors affiliating with multiple channels increases access and allows all channels to use APICS qualified instructors to deliver training.

14 © APICS Confidential and Proprietary NA Channel: Why Change and What is Changing Current APICS Chapters LLCs & Consulting Firms Premier Channel Partner Channel Partner Premier NFP Channel Partner NFP Channel Partner NFP Network Partner Premier price discounts Membership sales commission Price discounts Membership sales commission Premier price discounts Membership rebates Sales assistance (DBDM) Price discounts Membership rebates Sales assistance (DBDM) No price discounts Membership rebates Sales assistance (DBDM) Qualified Instructors Channel Partner Organization (For Profits) Local Channel Partners (Chapters) Focused on engaging through members Focused on sales & delivery If we can improve access to APICS products and services Then we will better serve the needs of more supply chain professionals And we will be better at achieving our APICS vision and mission Chapters are, and will continue to be, an important channel. However to grow the pie, we must add additional channels to allow end-customers to purchase our products and services.

15 © APICS Confidential and Proprietary Brainshark Presentations Five brief recorded presentations detailing program available on CBOX - corporatehttp:// corporate North American Channel Strategy Initial change introduction Second communication with more details Rollout timing Frequently Asked Questions Communication #5

16 © APICS Confidential and Proprietary Next Steps Continue to focus on objective: Bring APICS to more supply chain professionals and the companies that employ them. North American Chapters  Further deploy 3-level structure to NA Local Channel Partners (Chapters)  Continue roll-out with implementation team  District Managers engage in level setting dialogue with chapters  Milestones/Timeline Roll-out status changes and expectations/benefitsthrough 2015 Communicate 2016 product price changes Q Implement new pricing (all chapters premier)Jan 2016 Implement new 3 level pricing July 2016 Channel Partner (for-profit) Organizations (CPO)  Proactively recruit partners per strategic criteria  Milestones/Timeline Target CPO candidatesQ Recruit new Channel Partner OrganizationsQ3/Q and beyond

North American Channel Partner Agreement Change

18 © APICS Confidential and Proprietary Recurring CPA Issues  Insurance Obligations  APICS Code of Ethics Applicability  Chapters  Officers  Metrics  Price Changes  The Role of Instructors  New Products  Dispute Resolution

19 © APICS Confidential and Proprietary APICS North American Chapter Agreement  APICS chapter and volunteers have numerous questions and concerns about the APICS North American Chapter Agreement.  Questions and Concerns fall into four categories  Ambiguous  Incomplete  Inadequate Dispute Resolution Procedures  Lack of APICS’ boilerplate legal language

20 © APICS Confidential and Proprietary Ambiguous Open to more than one interpretation  No Definition Section  General responsibilities are identified, but not defined  An arbitration process is identified, but not defined  Appendix A

21 © APICS Confidential and Proprietary Incomplete Concepts are addressed, but not fully formed  Confidentiality Section  Intellectual Property Section  Indemnification Section  No APICS Code of Ethics  Term Section

22 © APICS Confidential and Proprietary Inadequate Dispute Resolution Procedures No detailed procedure to resolve disputes  Cure Period does not identify a material obligation  No Choice of Venue  Identify that arbitration is required, but not the specific arbitration

23 © APICS Confidential and Proprietary Lack of APICS’ boilerplate legal language Standard sections that APICS requires in all agreements  Intellectual Property  Payment  Confidentiality  Independent Contractor  Taxes  Notices  Force Majeure  Anti-Bribery

24 © APICS Confidential and Proprietary APICS International Channel Partner Agreement  Unambiguous & Complete  Triple the length of APICS North American Chapter Agreement  Robust Confidentiality, Indemnification, and Intellectual Property Sections  Thoroughly contemplates disputes and disagreements  Expanded Term and Termination Section  Addresses APICS’ Code of Ethics, Payment Issues, Independent Contractor Status, Nondisclosure, Notices, and Venue  Includes APICS’ boilerplate legal language  Representations and Warranties, Taxes, and APICS’ general contract terms

APICS Products Update

26 © APICS Confidential and Proprietary Courseware CPIM  CPIM study tools updated for 2015 Participant Workbooks with additional exam-like questions.  Minor updates will be issued for all CPIM courseware modules for 2015 based on instructor reported errata and minor ECM changes. BSCM version 4.3 MPR version 4.4 DSP version 5.3 ECO version 3.4 SMR version 2.5

27 © APICS Confidential and Proprietary CPIM Exam Simulator Product Launch  New online test preparation product launched March 31  Ran extensive communication program prior to launch to inform partners, instructors  Public launch included press release, Q&A document, web presence, marketing and sales materials  Initial campaign targeted EC and ATT holders  Exceeded 30% of annual sales goal in two weeks Launch Exceed Expectations

28 © APICS Confidential and Proprietary Courseware CSCP Learning System  A minor update is being released for 2015 based on instructor feedback.  A Job Task Analysis was conducted in Look for a MAJOR update to exam and courseware in more Information to come!

29 © APICS Confidential and Proprietary Courseware Principles  Complete series rebranded in 2014  Custom courses, based on Principles sessions increasing in popularity within corporations  Staff continue to develop seminar content using Principles sessions as the base – One day seminars using Principles content have been selling 50 to 100 seats!  View the Gary Landis webinar: APICS Principles: Building Customized Learning Sessions! 14% %20APICS%20Principles%20- %20Building%20customized%20learning%20sessions%20- %20EDITED.mp4

30 © APICS Confidential and Proprietary Sales Tools: Case Studies and Videos  Launched three customer profile pages:  Ingersoll Rand (includes case study and customer video) Ingersoll Rand  GE Oil & Gas (includes case study and customer video) GE Oil & Gas  Intel (Includes case study that appeared in a leading magazine) Intel New! Success Stories Online

31 © APICS Confidential and Proprietary SCOR-Professional Endorsement (NOT Certification) Can still put “SCOR-P” after your name, but not the same rigor as Certification Course and Exam bundled (cannot buy one without the other) How the SCOR Framework is designed and how to start implementing SCOR Best for companies interested in or already engaged in SCOR project SCOR project similar to ERP or Lean/Six Sigma in scope – company wide project New courseware due July 1

32 © APICS Confidential and Proprietary Let’s SCOR ® Webinar Series March 19, 2015 – Let’s SCOR Part 1: Get to know SCOR: Learn the value, benefits and buying motivations for SCOR-P, presented by Peter Bolstorff, Executive Director, APICS Supply Chain Council (In two parts)  Getting to Know SCOR Part 1 Getting to Know SCOR Part 1  Getting to Know SCOR Part 2 Getting to Know SCOR Part 2 March 26, 2015 – Let’s SCOR Part 2: Calling All Instructors: Discover what it takes to become a SCOR instructor and where to find instructors today, presented by Bob Collins, Senior Director of Professional Development, APICSCalling All Instructors: Discover what it takes to become a SCOR instructor and where to find instructors today

33 © APICS Confidential and Proprietary Let’s SCOR ® Webinar Series April 2, 2015 – Let’s SCOR Part 3: How to Make it Happen: Find out how to prepare to deliver SCOR training and learn about current training options, presented by Derinda Ehrlich, Vice President, Corporate and Channel Services, APICS and John Stults, Director of Conferences and Events, APICS  How to Make it Happen – Part 1 How to Make it Happen – Part 1  How to Make it Happen – Part 2 How to Make it Happen – Part 2  How to Make it Happen – Part 3 How to Make it Happen – Part 3 April 9, 2015 – Let’s SCOR Part 4: What’s in it for Partners: Gain clarity on the pricing structure and margins, presented by Derinda Ehrlich, Vice President, Corporate and Channel Services, APICSWhat’s in it for Partners: Gain clarity on the pricing structure and margins

34 © APICS Confidential and Proprietary Let’s SCOR ® Webinar Series April 16, 2015 – Let’s SCOR Part 5: Marketing and Selling SCOR: Leverage marketing content and collateral to position your organization for success, presented by Jennifer Daniels, Vice President, MarketingMarketing and Selling SCOR: Leverage marketing content and collateral to position your organization for success

35 © APICS Confidential and Proprietary The “2.0” version of the APICS SCC arrived in early March with updated content and information. Activating the Channel  Five-part narrated slideshow series to explain features of SCOR and how to sell and deliver SCOR-P training.  High viewership  Positive feedback  Archived on C-Box APICS SCC new website SCOR-P Launch to Channel Partners Rebranded SCOR Materials SCOR App

36 © APICS Confidential and Proprietary Attend APICS 2015  60+ educational sessions.  10+ facility tours  7 learning paths  SCOR sessions  Scholars program  Academic program October 5-7, 2015 ─ Las Vegas The early registration deadline is June 30 ! Save up to $600.

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