APICS Board of Directors July Meeting Update August

APICS Board of Directors July Meeting Update August 2015

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. 2 © APICS Confidential and Proprietary

Topics § § § 3 Motions Financial update AST&L merger update APICS and APICS SCC corporate strategy update Q&A © APICS Confidential and Proprietary

July BOD Meeting: Motions Approved The Board approved the following motions: § The corporate resolution to change the name of the corporation from American Production and Inventory Control Society, Inc. to APICS. § The Finance Committee’s recommendation to release the APICS donor restriction of the Endowment Fund within the 501(c)(3). § The Audit Committee’s recommendation to appoint Plante Moran as the APICS independent auditor for the 2015 fiscal period. § The Governance Committee recommended changes to the APICS Bylaws, Board Operating Procedures, and Committee Handbook, with a modification. § The APICS Nominating Committee’s recommendations to elect the candidates to the APICS Board and selections for officers. § The APICS SCC Board resolution to elect the candidates to the APICS SCC Board. 4 © APICS Confidential and Proprietary

2016 APICS Board of Directors (new members in blue): § § § 5 William E. Bickert– Chair Steven Georgevitch– Chair-Elect William Householder – Treasurer-Secretary Erica D. Benisch, CPIM, CSCP Keith Connolly Antonio Galvao Costa, CSCP Mark Holmes, CTL Bhaskar Majee, CSCP Steven Melnyk, Ph. D Clark Ponthier, CPIM Michael Wasson, CSCP Ginny Youngblood, Ph. D, CSCP, CPIM, SCOR-P © APICS Confidential and Proprietary

2016 APICS SCC Board of Directors (new members in blue): § § § 6 Ray Ernenwein Barbara Flynn, DBA Katherine Fowler Valerie Kaminski Douglas Kent, SCOR-P Lars Magnusson David Morrow, CPIM, SCOR-P William Newman, Ph. D Dana Riess, CPIM, CSCP Shari Ruelas, CPIM, CSCP Evelyn Thomchick, Ph. D, CTL Marco Ugarte, Ph. D, CPIM, CSCP, CQIA © APICS Confidential and Proprietary

Financial Update

Finance Update: YTD Jun-15 Results $000 s Omitted YTD Jun-15 B Variance Favorable/ (Unfavorable) Change % Revenue 12, 932 13, 316 (383) (2. 9%) Operating Expenses 13, 076 14, 503 1, 427 10. 9% Net Operating Loss (144) (1, 187) 1, 044 727. 2% Unrealized Gain/(loss) 171 0 171 n/a Change in Net Assets 8 YTD Jun-15 27 (1, 187) 1, 215 n/m © APICS Confidential and Proprietary

AST&L Merger

The Power of the AST&L Integration § Supports APICS in becoming the premier end-to-end supply chain association § Provides the knowledge base for us to serve one of the fastest growing industries in the world § Extends the products and services APICS and our partners provide in the marketplace § Allows our members and customers to continue to grow in their careers 10 © APICS Confidential and Proprietary

And the Industry Agrees! The merger with AST&L was well received by the press and in social media. 11 © APICS Confidential and Proprietary

Unification Timeline January 2015 May 2015 § Signed MOU to enter into the due diligence process § Immediately began reviewing AST&L current assets and determining content for transportation and logistics certification § Committee recommendation presented to APICS Board § APICS Board Approves Motion to merge § AST&L member vote opens – Leverage both AST&L and APICS SMEs – Explore various development and delivery options February 2015 § Established Unification Committee March 2015 § Initial Unification Committee meeting April 2015 § Staffs finalize initial business model § Unification Committee recommendation to APICS and AST&L Boards finalized 12 © APICS Confidential and Proprietary June 2015 § AST&L member vote closes July 2015 § § § Legal Documents of Merger filed Close announcement System and data migration Welcome new members Initiate integration activities December 2015 § Integration complete Early Second Quarter 2016 § Go-to-market with new certification review course and shortly thereafter, exam(s)

Existing AST&L Products and Services § Membership - legacy AST&L members provided with APICS membership with a renewal date consistent with legacy renewal. § Global Logistics Associate (GLA) – Remain status quo post-merger. Committee of legacy Board of Examiners and APICS staff to determine future of product § Professional Designation in Logistics and Supply Chain Management (PLS) – Remain status quo post-merger Committee of legacy Board of Examiners and APICS staff to determine future of product § Certified in Transportation and Logistics (CTL) – Remain status quo until 12/31/15 § Transportation Journal - to remain status quo post-merger 13 © APICS Confidential and Proprietary

New Product and Services § APICS on schedule to create new courseware and certification for Certified in Transportation and Logistics (CTL-P). – Individuals who are currently certified with a CTL credential will retain the certification status and be place within the APICS Certification Verification tool. § APICS to begin marketing new courseware and exam in Q 1 2016 and have the product available for purchase Q 2 2016. – Modeled after CSCP, training will be delivered through selfstudy and via the traditional APICS channel. 14 © APICS Confidential and Proprietary

APICS & APICS SCC Corporate Strategy Update

Corporate Strategy Value Proposition § APICS and the APICS Supply Chain Council offer a comprehensive corporate engagement experience that can be tailored to support the organizational goals of our corporate clients § Through research, industry-leading frameworks, and benchmarking, as well as professional training and certification programs, APICS and the APICS Supply Chain Council enable supply chain organizations to develop and access supply chain talent and elevate supply chain performance § APICS corporate members gain access to the only singlesource for individuals and organizations looking to advance supply chain performance 16 © APICS Confidential and Proprietary

Operating Model § The pre-merger Corporate Strategy Operating Model focused on growth through new pricing models, expanding capabilities, renewing legacy SCC members and cross-selling between all APICS constituents § In addition to organic member and financial growth within current customers, the operating model expanded to identify net new growth opportunities leveraging APICS market strength § An industry analysis prioritized targeted industries where APICS has significant presence and provided insight as to how to ‘tailor the APICS value proposition’ – Top 5 industries – Business service industries 17 © APICS Confidential and Proprietary

APICS Top 5 Industries As measured by the number Affiliates and Enterprise Members § Electronic and Other Electrical Equipment and Components § Chemicals and Allied Products § Industrial and Commercial Machinery and Computer Equipment § Food and Kindred Products § Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods 18 © APICS Confidential and Proprietary

Growth Opportunities in Top 5 ‘APICS Industries’ Of 100 firms with whom APICS does business, 48 are in the Fortune 1000 19 © APICS Confidential and Proprietary Of the 228 industrial firms in the Fortune 1000 in APICS space, APICS works with 48

Business Services Industries Business services industries include: § Consulting § Logistics § Software § Analytics § Trade Organizations 20 © APICS Confidential and Proprietary

Growth Opportunities in ‘Service Industries’ Of 85 Business Services firms with whom APICS does business, 7 are Fortune 1000 21 © APICS Confidential and Proprietary Of the 96 Business Services firms in the Fortune 1000 in APICS space, APICS works with 7

APICS Supply Chain Council Update

Purpose The APICS Supply Chain Council (APICS SCC) purpose is to shape future of supply chains by advancing research, education, and collaboration to strengthen organizations, positively impact economies and improve lives. 23 © APICS Confidential and Proprietary

New Value Proposition Training, certification and networking Research, benchmarking and frameworks APICS Value Proposition Individuals Corporate, Public Sector and Academic Institutions APICS delivers a total individual and corporate value proposition. We help individuals achieve career development goals. We help corporations achieve strategic supply chain goals. 24 © APICS Confidential and Proprietary

Building Corporate Support 253 60 CORPORATE AFFILIATES 404 91 ACADEMIC AFFILIATES PUBLIC SECTOR AFFILIATES TOP 10 COUNTRIES 253 14 25 © APICS Confidential and Proprietary 131 64 17 12 RK COUNTRY 1 United States 146 2 Germany 32 3 China 31 4 Switzerland 16 5 South Africa 15 6 Netherlands 14 7 United Kingdom 13 8 Canada 10 9 AFFILIATES # France 10 10 Sweden 10

APICS SCC Affiliate Program APICS SCC BENEFIT BREAKDOWN APICS ONE PREMIER CORPORATE PUBLIC SECTOR ACADEMIC ANNUAL SUBSCRIPTION $45, 000 $25, 000 $12, 500 $300 CORPORATE ADVISORY BOARD * P P EXECUTIVE SUMMIT P P EMPLOYEE ENGAGEMENT IN RESEARCH PROJECTS P P PWC’S GLOBAL SUPPLY CHAIN SURVEY REPORT * P P P SCORMARK™ L 1 P P SCORMARK™ L 2, L 3 BY ATTRIBUTE 5 5 2 SUPPLY CHAIN SUBMISSIONS 3 3 1 1 COMPARATIVE POPULATION CUSTOM STANDARD REPORT CUSTOM STANDARD READOUT * P P P OTHER COMPARATIVES * P P PUBLIC & ON-SITE PUBLIC & ONSITE PUBLIC FRAMEWORKS ACCESS P P P RESEARCH REPORTS * PRE-RELEASE PRINT AND DIGITAL DIGITAL ENGAGEMENT BENCHMARK SCOR TRAINING DISCOUNTS ON SCOR™ TRAINING PUBLICATIONS E-PUBLICATIONS AND ON-LINE RESOURCES 26 DISCOUNTS ON TRAINING & CERTIFICATION (CSCP, CPIM) P CORPORATE E-MEMBERSHIP * APICS P P © APICS Confidential and Proprietary * Denotes new benefit

APICS SCC Sponsor Program APICS SCC BENEFIT BREAKDOWN PREMIER CORPORATE ACCESS ONLY ANNUAL INVESTMENT CONFIGURABLE $25, 000 $12, 500 EXCLUSIVE * CORPORATE ADVISORY ENGAGEMENT LEADERSHIP SUMMIT EMPLOYEE ENGAGEMENT IN RESEARCH PROJECTS 5 PARTICIPATION FACILITATION P P CO-BRAND YOUR BRAND ACCESS TO PUBLISHED BENCHMARK REPORTS P P P CLIENT ACCESS TO SCORMARK WITH CLIENT AFFILIATION P P P DISCOUNTS ON APICS TRAINING P SCOR® Only FRAMEWORKS P PUBLICATIONS P P P $20, 000 $5, 000 WEB PROFILE AND LINK P P P LOGO – EMBLEM NOTING SPECIAL RELATIONSHIP WITH APICS P P P RESEARCH BENCHMARK TRAINING LICENSE ACTIVATION CREDIT MARKETING * EMS, ERP, Planning System, Logistics, Advisory 27 © APICS Confidential and Proprietary

The Importance of SCOR to APICS § The SCOR Framework creates a context for APICS corporate customers to improve their supply chain operations, not just through developing professional staff, but also through supply chain design, governance, and strategic decisionmaking. § Continued development of this key asset, as well as the research conducted and supported by the APICS Supply Chain Council, helps us to ensure the professionals we serve have the skills and knowledge they need to support corporate goals. 28 © APICS Confidential and Proprietary

Value of the SCOR Framework Business Process Re-engineering Performance Benchmarking Best Practices Analysis Organizational Design Capture the ‘as-is’ business activity and design the future ‘tobe’ state Quantify relative performance of similar supply chains and establish internal targets Identify practices and software solutions that result in significantly better performance Assess skills and performance needs and align staff and staffing needs to internal targets Process Reference Framework Processes 29 © APICS Confidential and Proprietary Performance (metrics) Practices People (skills)

SCOR Metrics (You teach this!) Attribute SCOR 11. 0 Metrics Reliability RL. 1. 1 Perfect Order Fulfillment Responsiveness RS. 1. 1 Order Fulfillment Cycle Time Agility AG. 1. 1 Upside Supply Chain Flexibility AG. 1. 2 Supply Chain Upside Adaptability AG. 1. 3 Downside Supply Chain Adaptability AG. 1. 4 Overall Value At Risk (VAR) Cost CO. 1. 1 Total Cost to Serve Asset Management Efficiency AM. 1. 1 Cash-to-Cash Cycle Time AM. 1. 2 Return on Supply Chain Fixed Assets 30 © APICS Confidential and Proprietary

How APICS education all fits together Gartner Maturity Stage Process-Practice. Performance-People Orchestration SCOR-P and M 4 SC Leadership Series Supplier’s Supplier to Customer’s Customer Supply Chain Community Collaboration CSCP Supplier to Customer Single Instance Anticipating CPIM and AST&L CTL Internal Process Reacting 31 Knowledge and Skills Principles of Operations Management Single Process © APICS Confidential and Proprietary

Introducing the SCOR APP Check it out for yourselves! • “Quick reference on steroids” • Search by term • Level one and two definitions • Level three list • Available through App Store and Google Play • 99 cents – all proceeds go to APICS student programs • Resident on device 32 © APICS Confidential and Proprietary

APICS SCC is more than just SCOR § Research, research § Student and academic programs § Executive outreach § Humanitarian supply chains 33 © APICS Confidential and Proprietary

APICS International Conference 34 © APICS Confidential and Proprietary

Questions? Thank You