1. APICS Board of Directors January 2015 Q4 Meetings Update

2. 2 © APICS Confidential and Proprietary APICS Vision/Mission Vision statement: APICS—the world’s leading community for end-to-end supply chain excellence. Mission statement: 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. 3 © APICS Confidential and Proprietary October BOD Meeting: Motions Approved The Board approved the following motions: – The Officer Nominating Committee’s selections of Bill Bickert as Chair-Elect, Steve Georgevitch as Treasurer-Secretary of the APICS Board of Directors and Joanne Gorski as the 2015 Certification Committee Chair were approved. – The Director Nominating Committee’s selection of Clark Ponthier and Ginny Youngblood to serve as directors on the 2015 APICS Board of Directors. – Plante Moran has been chosen to be APICS’ independent auditors for the fiscal year 2014.

4. 4 © APICS Confidential and Proprietary December BOD Meeting: Motions Approved The Board approved the following motions: – The 2015 – 2017 Budget as presented with additional risk assessments reported back to the Finance Committee. – APICS SCC Director Nominating Committee selection of Marco Ugarte, Rocky Newman, Shari Ruelas, Ray Ernenwein and Douglas Kent (guest board member) to serve on the 2015 APICS SCC Board of Directors. – Revision to the APICS SCC Bylaws. – The North American chapter model as presented.

5. 5 © APICS Confidential and Proprietary 2015 APICS Board of Directors Alan G. Dunn, CPIM – Chair GDI Consulting William E. Bickert – Chair-Elect NAVSUP Global Logistics Steven Georgevitch – Treasurer-Secretary Boeing Keith Connolly AT&T Sonia Daviaud Decision Value Erica Dickson, CPIM, CSCP Intel Bhaskar Majee, CSCP General Electric Company Steven Melnyk, PhD Michigan State University Clark Ponthier, CPIM Ingersoll Rand Colin M. Seftel, CFPIM, CSCP PSQ Peter Vanderminden Microsoft Corporation Ginny Youngblood, PhD, CSCP, CPIM, SCOR-P DuPont

6. 6 © APICS Confidential and Proprietary 2015 APICS Supply Chain Council Board of Directors Lars Magnusson – President Ericsson AB Shari Ruelas, CPIM, CSCP – Vice President Chevron Michael Wasson, CSCP – Secretary-Treasurer Tosca Ray Ernenwein Hewlett-Packard Barbara Flynn Indiana University Katie Fowler Schlumberger Antonio Galvao, CSCP Sealed Air Corporation William Rocky Newman, PhD, SCOR-S Miami University Marco Ugarte, PhD, CPIM, CSCP MillerCoors Douglas Kent, SCOR-P, Guest PwC William Bickert, Ex-Officio NAVSUP Global Logistics

7. Financials and Budget

8. 8 © APICS Confidential and Proprietary 2014 Financial Performance $000s OmittedYTD Nov-14YTD Nov-14BVariance Favorable/ (Unfavorable) Change % Revenue22,12925,249(3,120)(12%) Operating Expenses 23,25725,5042,2469% Net Operating Income / (Loss) (1,128)(254)(874)(344%) APICS continues to be in a strong financial position.

9. 9 © APICS Confidential and Proprietary 2015 – 2017 Budget: Making a Difference 2015 will be a year of investment. We plan to invest in further development of key legacy Supply Chain Council programs and services and build out the APICS Supply Chain Council. The organization anticipates a significant return in the future years. In addition, capacity is being created within the organization to serve an ever increasing number of professional and corporate customers either directly or through our strong network of channel partners. In the 2016 and 2017 budgets, the return on these investments will start to be realized, However, maximizing the return related to the SCC integration and strategic priorities will not be fully realized until beyond this budget period. Without continued investment in our products, services and channels, it will be impossible for APICS to meaningfully contribute to the expanding world of supply chain and support the mission of the organization. APICS Develops People People Improve Supply Chains Supply Chains Improve Economies Improved Economies Improve Lives

10. 10 © APICS Confidential and Proprietary 2015-2017 Budget Overview

11. 11 © APICS Confidential and Proprietary 2015-2017 Budget Overview

12. 12 © APICS Confidential and Proprietary Key Programs/Areas of Investment Integration Programs ASCC Support Public Training SCOR-P education, endorsement M4SC Strategy education ASCC research/benchmarking ASCC publications Strategic Programs Membership app/report development AoL exam development Student membership Student programming Career center Core Products and Services CPIM/CSCP certification APICS Courseware Corporate Training Conferences Capacity Building Corporate Services Regional staff DBDMs Website improvements Online Training SCC IntegrationMember Workforce DevelopmentInternational North AmericanCorporateMillennial xxx xxxxxX xxxxx xxxxx xxxx xxxxx X xxxxx X xx X xxxx X xxxx X xxxxx X xxxx X xxxxxx X xxxxxx X xxxxx X xxxxxx xxx xx xxx X XXXXXX Individual Customers Corporate Customers STRATEGIC PRIORITIES

13. Strategic Priorities

14. 14 © APICS Confidential and Proprietary Five Strategic Priorities 1. Enhance capabilities to sell to corporations 2. Increase focus on international markets 3. Optimize and enhance the current North American chapter model 4. Address workforce development opportunities 5. Ensure relevance to millennials globally In addition to the strategic priorities, the Board asked the staff to develop a new membership strategy and complete the operational and strategic integration of the APICS SCC.

15. 15 © APICS Confidential and Proprietary Corporate: Strategic Intent  Address a full range of benefits that advance corporate supply chain performance delivered both by APICS and via the APICS partner network  Tailor benefits delivered based on specific corporate needs  Increase value proposition to individual corporate customers as they increase their engagement with APICS  Firmly establish APICS as the preferred partner enabling supply chain success for corporations across the globe Strategy tenets:  Value: Improve value to proposition to corporation  Flexibility: Provide flexibility in the way corps engage  Access: Ensure adequate access across the globe  Input: Give corps a greater voice to impact APICS programs

16. 16 © APICS Confidential and Proprietary International: Strategic Intent Situation Summary  Though difficult to quantify, significant untapped international opportunity exists for APICS products and services  APICS international infrastructure, focus and support has continued to mature  SCC merger opened access to international and global customers and partners  2014 major strategy revision increased investment, commitment, focus and effort in international markets  Current momentum but distance yet to go to execute strategy Strategic Intent:  Strengthen APICS position globally as the leading association for supply chain and operations management  Grow international APICS footprint through prioritized and focused approach  Capture and leverage international value of SCC merger

17. 17 © APICS Confidential and Proprietary North American Channel: Strategic Intent Build a North America channel to meet needs of end-customers and  Fulfills unmet market potential  Ensures coverage across current and future APICS product and services  Incentivizes channel partners (chapters) based on their market success  Enables channel partner and end-customer flexibility in working with APICS  Simplifies and standardizes business models

18. 18 © APICS Confidential and Proprietary North American Channel Strategy: Objectives  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 low performing chapters to improve or make alternative decisions.  Add new channels; APICS direct, consulting firms or training organizations. – Expected Impact: New channel partners will improve 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.

19. 19 © APICS Confidential and Proprietary Workforce Development: Strategic Intent To create pathways for high demand supply chain management careers; partner to prepare individuals for those careers in the most effective way possible; and ultimately give them the knowledge they need to do strategic work and advance. Strategy tenets:  Grow the number of individuals pursuing careers in supply chain and operations management.  Assure that graduating students are able to apply their education on the job.  Certify professionals to validate their knowledge and skills.  Advance professionals throughout their careers by offering content and programming individuals need to move into more strategic positions.

20. 20 © APICS Confidential and Proprietary Millennials: Strategic Intent Closely aligned with our membership and workforce strategies, our aim is to clearly differentiate our products, ensure the relevancy of our marketing and experiences, and fuel growth and continued organizational success by meeting the need of this key – and growing – customer segment. Strategy tenets:  Increase millennial engagement with APICS  Grow the number of millennial members  Leverage new membership strategy to better define millennial value proposition  Offer more meaningful content and experiences to create lifelong members and advocates  Apply previously defined guideposts across product plans Objectives and metrics related to this strategy measure our progress on successfully executing the strategy tenets.

21. 21 © APICS Confidential and Proprietary Membership: Strategic Intent The strategic intent of the membership strategy is to build a customer-centric membership strategy that  Demonstrates we understand what our individual and corporate members are seeking to accomplish  Enables APICS and our affiliated organizations to be their partner in success.  Delivers a membership benefits package that can be customized to meet specific individual and corporate member needs; and evolves as the member advances in his or her career The membership strategy is highly dependent on having in place the technology that allows APICS to mass customize membership benefits to meet the specific needs of each individual member. The strategy will be implemented over the course of the next two years.

22. Supply Chain Council Integration

23. 23 © APICS Confidential and Proprietary About APICS SCC APICS SCC advances supply chain and operations management and innovation through  research  process frameworks  benchmarking  publications APICS SCC maintains the Supply Chain Reference model (SCOR ® ), the supply chain management community’s most widely accepted framework for evaluation and comparing supply chain activities and performance.

24. 24 © APICS Confidential and Proprietary Go to Market  Product managers for Certification, PD, Research, and Events have incorporated SCOR into their 2015 product plans.  Legacy SCC Chapter Taskforce –Staff compared the legacy SCC volunteer structure, including the chapters, to the APICS committee and governance structure. –A recommendation was made to the task force on the best assimilation strategy to maximize volunteer enthusiasm, eliminate overlap, and leverage best practices from APICS and legacy SCC Chapters. –Next steps include task force approval, mapping current volunteers to appropriate committees (both in APICS and APICS SCC), and initiating an off cycle call for volunteers to populate research project task forces.

25. 25 © APICS Confidential and Proprietary Merger Milestones  Communicate new website address and access information to legacy SCC members  Communicate the new APICS SCC Affiliate Model to key stakeholders via Email Webinar 1-1 Phone calls Presentation Website  Complete marketing collateral to support new affiliate model  Finalize new SCORmark benchmark process

26. 26 © APICS Confidential and Proprietary Website Integration: Complete

27. 27 © APICS Confidential and Proprietary New APICS SCC Affiliate Model

28. Upcoming Events

29. 29 © APICS Confidential and Proprietary 2015 APICS Events We hope to see you at an APICS event in 2015. APICS 2015 São Paulo March 12−13 | São Paulo, Brazil APICS 2015 Shanghai April 16−17 | Shanghai, China Best of the Best S&OP Conference 2015 June 18–19| Chicago, Illinois APICS 2015 October 5–7| Las Vegas, Nevada Please visit apics.org/events for more information.apics.org/events

30. Thank you!