APICS Board Update April 2013

APICS Mission APICS builds and validates knowledge in supply chain and operations management. We enable our community of members, affiliates and customers to lead in the global marketplace. 2

April Board Meeting Summary The following reports were presented and discussed at the April Board meeting 2012 year end audit report Finance Report, March 2013 YTD Governance Committee recommendations Strategic Ideation Taskforce ideas on creating a culture of innovation Strategic planning update Branding update Channel partner update 3

Finance Report The 2012 year end audit results were presented and received by the Board. APICS received an unqualified opinion or a ‘clean opinion’ from Plante & Moran, PLLC The finance report was presented and indicates that we have exceeded net operating income, with a slight decline in top line revenue of approximately 3.5%. Expenses were under budget by over 10%, accounting for the positive NOI. 4

Finance Report Year-to-date March 2013 Financial Highlights: YTD Mar-13 revenue is $5.8m and below budget by $209 thousand. The unfavorable variance is mainly related to a change in accounting methodology for recognizing certification voucher revenue beginning in YTD Mar-13 operating income was $648 thousand and above plan as result of lower-than-budgeted expenses. Unrestricted cash and investments at end of Mar-13 were $2.8m and $8.6m respectively. 5

Sustainable Growth is the Goal Our goal continues to be to develop an organization that is successful and sustainable over the long term. The Board approved a new planning process in January that will enable the organization to: extend its line of sight build capacity be more agile in taking advantage of opportunities advance supply chain professionals and the organizations they serve 6

Key Initiatives Supporting APICS Sustainable Growth

Governance The Governance Committee presented recommendations based on the committee’s analysis of the organization’s leadership expectations and composition. The Governance motion was not approved. The Governance Committee will identify critical issues concerning the proposed governance changes and report back to the Board in July. 8

Strategic Plan Update Based on recommendation and acceptance by the Board in January, staff presented Phase I of the strategic plan. A current situation analysis was provided reflecting data on customers/members, buying patterns, market size, sales channels, etc. This will provide the foundation for the organizational 3 year priorities and objectives which will be presented to the Board in July. 9

Branding Update Fleishman Hillard, a leading global communications firm, completed research on the market perception of the APICS brand. Based on this research, a new brand positioning statement, updated logo and launch plan were presented to the APICS Board of Directors – and approved. The updated branding will become public at the APICS International Conference. 10

Channel Partner Update The next phase of the channel strategy addresses a critical gap for the North American channel partners – the need for greater marketing and sales support. Based on the recently completed CPA and channel partner analysis the Board has approved a recommendation to directly support the channel partners. The new business model will place regional sales staff to promote, market and generate sales for the local chapters that choose to participate. This new model will also provide APICS the opportunity to leverage the strength of our corporate entity with local partners. 11

APICS Foundation Update Integration activities continue. The Foundation committee structure for this integration period has been set and we are currently engaged in a call for leaders at There will be a case competition held at the 2013 International Conference in Orlando from September 27 – 29. Teams are being sponsored by Districts who held qualifying competitions in

The APICS Finance Committee approved funding to help support a major joint research project between the APICS Foundation and Michigan State University which will kick-off in May. This two-year study will explore how firms are trying to convert their supply chains from being price-driven to value-driven based on the strategic outcomes firms seek to achieve. APICS Foundation Update 13

QUESTIONS? 14