North American Channel Strategy Operating Model Change May 2015

2 © 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

3 © 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.

4 © 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.

5 © APICS Confidential and Proprietary Implementation Plan Development Oct 2014 – Jun 2015 Operating Model Development Jul – Oct 2014 Strategy Formulation Jan – July 2014 Situation Analysis Oct – Dec 2013 APICS Strategic Plan Approach & Current Project Status Economic & Financial Modeling - Ongoing Oct-Dec 2013 October 2014 Detailed Q1/Q Design October/November Design October/November Develop November Develop November Execute January –June 2015 and beyond Execute January –June 2015 and beyond Communicate November/December Implementation Plan Development Today

6 © APICS Confidential and Proprietary Implementation Team Formed and Supportive Deliverables: “Heat map” for chapter placement in tiers completed Communications and feedback with Chapters conducted Change Plan and Launch Schedule completed Change Management training conducted for Implementation team Continue communications Continue resistance mitigation Continue to transfer ownership to District Managers and Chapters Start recruiting for-profit channel partners TeamRole Abe EshkenaziAPICS CEO and project Sponsor Jason WheelerPast BOD/Master Instructor Karen SchieboutDistrict Manager/Chair of DMC Mark ChristensenDistrict Manager Stacy GiggerDistrict Manager Jesus CamposDistrict Manager Steve RudnickiDistrict Manager Dave JankowskiDistrict Manager Joost VlesDistrict Manager Humphrey VernausDistrict Manager Keith JohnsonDistrict Manager Erica DicksonBoard of Directors/Chapter Member Leann GoettelAPICS Staff (District Channel Manager) Joan WallnerAPICS Staff (District Channel Manager) Tawana CollinsAPICS Staff (District Channel Manager) Jim PavletichAPICS Staff (Membership EVP) Derinda EhrlichAPICS Staff (Channel EVP )/Master Instructor Henri WingfieldAPICS Staff (Channel Services Director)

7 © APICS Confidential and Proprietary 2015 Chapter Status Results *Note: The Heat Map above may contain chapters that have closed or are slated to close.

8 © APICS Confidential and Proprietary 2015 Chapter Status Results by District DistrictPremier Partners Channel Partners Network Partners Total Chapter Canadian Great Lakes Heartland Mid Atlantic Northeast* Pacific Western* Southeast Southwest Terra Grande Total *Note: Chapters that closed or are slated to close have been removed from above table summary.

9 © APICS Confidential and Proprietary Frequently Asked Questions What Is Expected of Chapters Designated Premier  Affirm Acceptance of Premier Designation  Provide a Forecast for Financial Performance  Maintain Channel Partners Standards  Confirm APICS provided Financial Data

10 © APICS Confidential and Proprietary Frequently Asked Questions How does a Local Channel Partner (LCP) Achieve Premier?  Financial and Behavioral Performance evaluated on an Annual basis.  Chapter and APICS Establish Targets  Performance reviewed against targets  Targets reviewed against actual activity  Status change/decision reported Being Premier is a calculation, not a judgement. The amount of reporting is not anticipated to be a burden.

11 © APICS Confidential and Proprietary Frequently Asked Questions What Services Do Networking Chapters provide Membership Services Networking Services Can sell classes, opportunistically.

12 © 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

13 © 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

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