APICS 2015 Strategic Priorities Overview and Update

1. APICS 2015 Strategic Priorities Overview and Update APICS Southeast District Meeting May 30, 2015 Sharon Rice Vice President, Strategy

2. APICS Vision and Mission APICS Vision StatementAPICS—the world’s leading community for end-to-end supply chain excellence. APICS MissionFostering 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. Shaping the Future of Supply Chains Improved Economies Improve Lives Supply Chains Improve Economies APICS Develops People People Improve Supply Chains

4. 2015 APICS Board of Directors Steven Melnyk, PhDMichigan State University Clark Ponthier, CPIMIngersoll Rand Colin M. Seftel, CFPIM, CSCPPSQ Peter VandermindenVanderminden Consulting Ginny Youngblood, PhD, CSCP, CPIM, SCOR-PDuPont Evan CrainThe Dow Chemical CompanyYoung Professional Guest Board Member Alan G. Dunn, CPIM – ChairGDI Consulting William E. Bickert – Chair-ElectNAVSUP Global Logistics Steven Georgevitch – Treasurer-SecretaryBoeing Keith Connolly AT&T Sonia DaviaudDecision Value Erica Dickson Benisch, CPIM, CSCPIntel BhaskarMajee, CSCPGeneral Electric Company

5. AST&L Merger

6. American Society of Transportation and Logistics to Merge with APICS Combination Extends Expertise of Global Leader in Supply Chain Research, Education and Certification Programs [This is the headline of the press release that went out on Tuesday, May 5, 2015.]

7. Meet AST&L www.astl.org 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.

8. 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.

9. Strategic Rationale of the Combination • Creates the most complete supply chain body of knowledge • Ensures investment, improvement and continued relevancy of transportation and logistics content • 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:

10. 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.

11. 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.

12. 2015 Strategic Priorities

13. APICS Strategy Identification Process Board identifies issues critical for the organization to address. Issues may related to: • Achieving mission • Supply chain body of knowledge • Competitive positioning/outreach • Financial sustainability Staff engage in an iterative strategy development process including two board approval gates Approved strategies are funded, transformed into enterprise-wide goals, and dynamic work plans

14. APICS Strategy Development Process • Why is creating a strategy to address this issue/opportunity a priority? Situation Analysis • What is APICS going to do? Board Review Approval Gate Strategy Formulation • How will we operationalize the strategy? Operating Model • What is the plan for executing the strategy? Implementation Plan • How will APICS and our constituencies benefit from successful execution of the strategy? Finance Committee Board Review Gate Economic & Financial Analysis

15. Overarching Goal How do we engage more people and corporations with APICS to better achieve our purpose? Better penetrating key market places across the globe • North America Strategy • International Strategy Meeting the needs of supply chain professionals across the span of their careers • Workforce Strategy • Millennials Strategy • Membership Strategy Addressing the end-to-end supply chain development needs of corporations across the globe • Corporate Strategy

16. Workforce Development Strategy Strategic Intent: 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 Introduce more incoming students to careers in Supply Chain & Operations Management Assure Offer Basics of Supply Chain Management as an “Assurance of Learning” exam benefitting students, universities, and employers, Provide a high quality, yet simple way for students to earn a pre-professional certification that will provide them a competitive advantage and provide us a funnel for future CPIM certifications Certify Continue to educate and certify entry to mid-level supply chain professionals so that they can accelerate their careers and enhance their value to their employers. Advance Extend the relationship with APICS beyond middle management by leveraging SCC and Horizons research to produce education and information that supports transitioning professionals into rotation programs and higher levels within their corporations.

17. Corporate Strategy 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 Strategic 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 single-source for individuals and organizations looking to advance supply chain performance. 

18. Membership Strategy Strategic Intent Build a customer-centric membership strategy that demonstrates • We understand what our individual and corporate members are seeking to accomplish; and • The way in which APICS and our affiliated organizations can be their partner in success. Specifically, we are seeking to deliver a membership benefits package that can • Be customized to meet specific individual and corporate member needs; and • Evolve as the member advances in his or her career. Strategy Tenets Utilizes the concept of mass customization Gathers from (crowdsourcing) and provides insight to (trusted advisor) the customer Is applicable across generations, career stages, and cultures. Leverages current APICS and APICS SCC content and services, and aligns with other APICS strategies

19. Millennial Strategy Strategic Intent: Clearly differentiate APICS products and services Ensure relevancy of our marketing Fuel growth and continued organizational success by meeting the needs of this key - and growing - customer segment Strategy Tenets: Develop programming and communicate with APICS Millennials understanding they are: Educated and advancing. Differentiating themselves through education is a way to hit the next career level, earn more, pay off their loans and support the lifestyle they want. Value and values-driven. They are cautious consumers seeking deals, but also like to show their commitment to the issues that speak to their heart. Technologically astute. This is the online generation. They expect state-of-the-art interaction. If it takes too long to load, they “x” out. If it looks ugly, it’s over. Image conscious, socially networked. Continuously curating their personal brand, sharing their thoughts, influenced by and influencing others, with the expectation they will be heard and receive a rapid response. Diverse and different. More women and more minorities with more education entering the supply chain and operations management workforce. This is not a one-size-fits-all generation and it’s not a global phenomenon.

20. International 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 Strategy Tenets Focus to finish in China • Partner & Channel Approach • Locate and engage local China strategy development partner • Build segmented customer/product approach • Marketing • Take action to establish local brand • Build local infrastructure ( website) • Redefine annual China conference goals • Customers/Products • Continue to focus on multi-nationals; Build focus on China companies • Localize “Principles” courseware; develop “principles” exams/certificate Revise Brazil/CESA Critical Country Strategy

21. North American Strategy Strategy Intent • Brings APICS to more supply chain professionals and companies: fulfills unmet market potential • Incentivizes channel partners based on their market success • Enables end-customer flexibility in working with APICS • Simplifies and globally standardizes business (channel) models Strategy Tenets • Implement a tiered channel structure based on behavioral and financial performance: • 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. • 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 • Instructors affiliating with multiple channels increases access and allows all channels to use APICS qualified instructors to deliver training.

22. Thank you!