North American Channel Strategy Operating Model Change

1. North American Channel Strategy Operating Model Change May 2015

2. 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. 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. NA Channel: Why Change and What is Changing Focused on sales & delivery Premier Channel Partner • Premier price discounts • Membership sales commission LLCs & Consulting Firms Channel Partner Organization (For Profits) • If we can improve access to APICS products and services • Price discounts • Membership sales commission Channel Partner Qualified Instructors Current APICS Chapters • Then we will better serve the needs of more supply chain professionals • Premier price discounts • Membership rebates • Sales assistance (DBDM) Premier NFP Channel Partner Local Channel Partners (Chapters) • Price discounts • Membership rebates • Sales assistance (DBDM) NFP Channel Partner • And we will be better at achieving our APICS vision and mission Focused on engaging through members NFP Network Partner • No price discounts • Membership rebates • Sales assistance (DBDM) 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 Strategic Plan Approach & Current Project Status Situation Analysis Oct – Dec 2013 Strategy Formulation Jan – July 2014 Operating Model Development Jul – Oct 2014 Implementation Plan Development Oct 2014 – Jun 2015 Implementation Plan Development Today October 2014 Oct-Dec 2013 Detailed Q1/Q2 2015 Economic & Financial Modeling - Ongoing Execute January –June 2015 and beyond Design October/November Develop November Communicate November/December

6. 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

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

8. 2015 Chapter Status Results by District *Note: Chapters that closed or are slated to close have been removed from above table summary.

9. 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. 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. Frequently Asked Questions What Services Do Networking Chapters provide Membership Services Networking Services Can sell classes, opportunistically.

12. Brainshark Presentations Five brief recorded presentations detailing program available on CBOX - http://www.apics.org/sites/cbox/corporate/from-apics-corporate North American Channel Strategy Initial change introduction Second communication with more details  Rollout timing Frequently Asked Questions Communication #5

13. 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/benefits through 2015 • Communicate 2016 product price changes Q2-2015 • 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 candidates Q2-2015 • Recruit new Channel Partner Organizations Q3/Q4-2015 and beyond

14. Thank You