APICS AND APICS SUPPLY CHAIN COUNCIL 2014 ANNUAL REPORT PEOPLE AND COMPANIES CHANGING THE WORLD

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1 APICS AND APICS SUPPLY CHAIN COUNCIL 2014 ANNUAL REPORT PEOPLE AND COMPANIES CHANGING THE WORLD

2 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 ANNUAL REPORT

3 LETTER FROM LEADERSHIP The APICS and Supply Chain Council Merger: A Brilliant Combination As the premier professional association for supply chain and operations management, APICS is focused on advancing end-to-end supply chain excellence. In 2014, we had the opportunity to take a leap forward in this endeavor by merging with the Supply Chain Council. This merger is an important milestone for APICS and a historic moment for the global supply chain industry. APICS and APICS Supply Chain Council (APICS SCC) together offer the first and only single-source solution for individuals and corporations looking to evaluate and improve supply chain performance. As APICS and APICS SCC, we now have the resources to ensure supply chain organizations are ready to address two of the most important topics in the global economy today developing supply chain talent and elevating supply chain performance. As an APICS member, partner or customer, you are a valued and essential part of the world s largest and most respected global supply chain community. You can be assured of continued investment, innovation, improvement and relevancy of the research, education, training, frameworks, benchmarking and certification programs APICS and APICS SCC deliver. APICS now has greater resources and an expanded network of subject matter experts and volunteers committed to advancing the organization s goals. With a warm welcome to our new APICS SCC affiliates and sponsors that have come to us by way of the merger with SCC, and with continued gratitude and appreciation to our community of APICS members, volunteers and partners, thank you for your contribution to making this organization a driving force in the industry. Together we re taking supply chain to a new level. Best regards, Alan Dunn, CPIM Chair, 2015 APICS Board of Directors Abe Eshkenazi, CSCP Chief Executive Officer 2014 ANNUAL REPORT 3

4 APICS LEADERSHIP The APICS and APICS SCC Boards of Directors oversee the organization and the services it provides to more than 41,000 members in more than 100 countries. The boards are comprised of experienced, engaged business leaders from some of the world s most respected enterprises who provide insight and guidance as they further the advancement of the APICS community and the supply chain and operations management industry APICS Board of Directors Chairman Alan G. Dunn, CPIM GDI Consulting William E. Bickert NAVSUP Global Logistics Support Treasurer-Secretary Steven Georgevitch Boeing Keith Connolly AT&T Sonia Daviaud Decision Value Erica Dickson, CPIM, CSCP Intel Bhaskar Majee, CSCP Philips Steven Melnyk, PhD Broad College of Business, Michigan State University Clark Ponthier, CPIM Ingersoll Rand Colin M. Seftel, CFPIM, CSCP PSQ Peter Vanderminden Microsoft Ginny Youngblood, CSCP, CPIM DuPont de Nemours 2015 APICS SCC Board of Directors President Lars Magnusson Ericsson AB Vice President Shari Ruelas, CPIM, CSCP Chevron Treasurer-Secretary Michael Wasson, CSCP 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 APICS SCC Board Member Guests Douglas Kent, SCOR-P PwC William Bickert NAVSUP Global Logistics APICS Board Member Guests Evan Crain Young Professional Member Lars Magnusson 2015 APICS SCC President ANNUAL REPORT

5 APICS BY THE NUMBERS Financial Results APICS s actual operating revenue in 2014 was $26.6 million, up 12 percent from Operating expenses in 2014 were $26.2 million, compared to $22.9 million in Revenue and expenses fall into the categories of membership, educational materials, certification, conferences, training and board/committee/volunteer activities/other. View the complete 2014 APICS financial summary online at apics.org/annualreport. Results include legacy Supply Chain Council activity from August 1, 2014, through December 31, % 6% 4% 2013 Actual Operating Revenue $23.7 Million 20% 32% 29% 9% 8% 6% 2014 Actual Operating Revenue $26.6 Million 19% 31% 27% MEMBERSHIP EDUCATIONAL MATERIALS CERTIFICATION CONFERENCE TRAINING BOARD, COMMITTEE, VOLUNTEER ACTIVITIES AND OTHER 8% 3% 21% 10% 5% 16% 10% 10% 2013 Actual Operating Expenses $22.9 Million 2014 Actual Operating Expenses $26.2 Million 31% 27% 30% 29% Source of Financial Information The information above has been summarized from audited financial statements for the year 2014 only. An unqualified opinion was issued by Plante Moran, LLP, APICS independent auditors. View the complete 2014 APICS Financial Summary online at apics.org/annualreport ANNUAL REPORT 5

NOTABLE INITIATIVES: 2014 In a year punctuated by the merger with Supply Chain Council, APICS and APICS SCC saw many significant accomplishments and achievements, some of which include: 13% GROWTH

2014 is the fifth consecutive year of membership growth, and the first this decade with a double-digit increase.

Endorsement (SCOR-P) to its roster of designations.

6 NOTABLE INITIATIVES: 2014 In a year punctuated by the merger with Supply Chain Council, APICS and APICS SCC saw many significant accomplishments and achievements, some of which include: 13% GROWTH APICS membership showed solid growth in 2014, increasing 13 percent to 41,599 members by year-end. Student membership grew 34 percent while other member types grew 11 percent is the fifth consecutive year of membership growth, and the first this decade with a double-digit increase. PARTICIPANT WORKBOOK SCOR-PROFESSIONAL TRAINING SCOR Framework Problem Solving with SCOR SCOR SUPPLY CHAIN OPERATIONS REFERENCE MODEL In 2014, APICS was proud to add the APICS SCOR Professional Endorsement (SCOR-P) to its roster of designations. The SCOR-P enables participants to learn techniques for managing and measuring the performance of a global supply chain utilizing the Supply Chain Operations Reference (SCOR) model. In addition, the well-respected APICS Certified in Production and Inventory Management (CPIM) designation added more than 2,100 designees and the APICS Certified Supply Chain Professional (CSCP) designation was earned by more than 2,200 individuals in To date more than 102,850 people have earned the CPIM designation in nearly 35 years and more than 17,900 have earned the CSCP designation since its launch in APICS also enhanced services for designees and employers by streamlining certification maintenance and introducing online certification verification. Designees also benefited from a limited time offering of a CPIM Recertification Exam. The APICS network of 201 North American chapters and 99 international channel partners flourished as it orchestrated hundreds of courses, workshops, seminars, meetings and events for thousands of professionals. In 2014, APICS streamlined and improved the partner structure and provided tools and marketing materials to assist chapters and partners with building member support and brand awareness. A new district website template and hosting model also was launched ANNUAL REPORT

INSIGHTS AND INNOVATIONS SUSTAINABLE SUPPLY CHAINS: MAKING VALUE THE PRIORITY How companies can find more value by using ethical, economic, social, and environmental levers throughout their supply

7 INSIGHTS AND INNOVATIONS SUSTAINABLE SUPPLY CHAINS: MAKING VALUE THE PRIORITY How companies can find more value by using ethical, economic, social, and environmental levers throughout their supply chains APICS SCC completed several important research reports. In May 2014, APICS SCC and PwC released a joint study on sustainability that revealed how supply chain sustainability translates into measurable business value. In addition, reports about the emerging practice of remanufacturing and the growing concern about chronic disruption in supply chains were released. Insta The APICS social media community is thriving, with tens of thousands of APICS followers and subscribers on Facebook, Twitter, LinkedIn, Instagram and YouTube. The APICS Supply Chain Channel, a members-only community, provides a forum for connecting and collaborating. Specialized channels address areas like management, sustainability, lean, military and young professionals ANNUAL REPORT 7

NETWORKING AND EDUCATIONAL EVENTS APICS events provide education about pressing issues facing supply chain professionals.

instability. APICS 2014 in New Orleans attracted 1,800 professionals and featured educational sessions, hands-on workshops, networking opportunities and more than 50 exhibitors.

In addition, the APICS Corporate Awards of Excellence were given to GE Oil & Gas and BASF at the annual conference and Rockwell Automation received the award at the APICS Shanghai

8 NETWORKING AND EDUCATIONAL EVENTS APICS events provide education about pressing issues facing supply chain professionals. Topics are presented by experts in the field and supply chain professionals gain actionable insights into how to achieve maximum productivity, meet consumer demands and remain agile amid instability. APICS 2014 in New Orleans attracted 1,800 professionals and featured educational sessions, hands-on workshops, networking opportunities and more than 50 exhibitors. Twelve teams of students from around the globe participated in the International Student Team Competition, which was won by Sun Yat Sen University of China. In addition, the APICS Corporate Awards of Excellence were given to GE Oil & Gas and BASF at the annual conference and Rockwell Automation received the award at the APICS Shanghai regional event EVENTS Chicago New Orleans Shanghai Dubai Best of the Best S&OP APICS 2014 APICS 2014 Asia APICS 2014 Middle East Risk and S&OP seminars were held in Brazil, India and North America, and APICS SCOR training sessions were conducted in cities around the world ANNUAL REPORT

9 NOTABLE EVENTS: 2015 The APICS 2015 conference will return to Las Vegas with a program that features distinct learning paths that include analytics, innovation, S&OP, operational efficiency and risk events include: OCTOBER 5-7 LAS VEGAS, NEVADA APRIL JUNE CHICAGO, IL NOVEMBER APICS also offers Risk and S&OP seminars and SCOR training globally. View upcoming APICS events at apics.org/events ANNUAL REPORT 9

10 ABOUT APICS APICS is the premier professional association for supply chain and operations management and the leading provider of research, education and certification programs that elevate supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM), APICS Certified Supply Chain Professional (CSCP) and APICS Supply Chain Operations Reference Professional (SCOR-P) designations set the industry standard. With over 43,000 members and more than 300 channel partners, APICS is transforming the way people do business, drive growth and reach global customers. Visit the APICS website at apics.org for details and information on all APICS initiatives as well as member and industry resources.

RAISING THE BAR APICS 2015 ANNUAL REPORT

RAISING THE BAR APICS 2015 ANNUAL REPORT 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