2013 Annual Report

Our Mission…We empower supply chain professionals

with profound discovery, powerful

connection, and clear foresight.

• Over 300 large, global firms as corporate members

• Over 90 in-depth focus studies on critical topics

• Hundreds of benchmarking reports on over 20 industries/topics

• Global research events across North America, Europe, and Asia

• Partnerships with 30 leading universities

• Online access to 1,200+ documents providing best practices, assessment tools, case studies, and expertise

What has set us apart from the competition is our careful and credible research methods, our research reputation, and our mission to deliver that research without bias.

Together with Arizona State University, the Institute for Supply Management®, and the executives from our member companies, CAPS Research is poised to continue shaping the profession well into the future.

Letter from the Executive Director

I t’s hard to believe, but this will be my last Annual Report letter for CAPS Research. I

will be retiring in 2014 from my positions as Executive Director of the CAPS Research

team, as the holder of the Harold E. Fearon Chair in Purchasing and as Professor

of Supply Chain Management at the W. P. Carey School of Business at Arizona State

University. Although my successor has not been announced, I welcome him or her to

a stimulating position that I have enjoyed for the past 19 years.

On the following pages of this Annual Report you will find the names of all the CAPS

Research team members whom I have been privileged to work with over these past

years. They have all made important contributions to our work and many of them will

continue to do so in the future. You will also see the names of all the members of the

Board of Trustees (now the Executive Advisory Board) who have been so instrumental

to our success over the past two decades. I am especially grateful for the guidance and

support given me by the Board chairs: Raymond Stark, Stewart Beall, Joe Yacura, Bill

Ramsey, Dave Sorensen, Jim Scotti, and Tim Fiore. Each one had a different style, but

all were delightful to work with and all provided just the right touch at the right time.

And a special call out to Harold Fearon, who began CAPS Research almost 30 years

ago and who still serves on the Executive Advisory Board. I list all their names in this

Annual Report as a way to say thank you and to honor all of their many contributions

to CAPS Research.

I am also grateful to ISM and its leaders – Jerry Baker, Paul Novak, and now Tom

Derry – for their support of CAPS Research. Each served on the CAPS Research Board

and provided unstinting support and cooperation in all of our endeavors. I thank the

past and current deans of the W. P. Carey School of Business – Larry Penley, Robert

Mittelstaedt, and now Amy Hillman – for their support; they served on the CAPS Research

Board while simultaneously leading the W. P. Carey School of Business to ever-higher

levels of achievement.

I also appreciate all of my learned academic colleagues from around the world who

worked with us on many research projects. A special thanks to Dr. Robert M. Monczka,

my colleague of 40 years, for his leadership of and enthusiasm for many of our research

projects.

I am greatly indebted to all the individuals, too numerous to mention, who worked

with CAPS Research or persuaded their companies and organizations to support CAPS

Research with money, access, and data. Without them, nothing would have been pos-

sible.

Finally, I want to thank my wife, Sue, and my wonderful children and grandchildren

for their enthusiastic support these many years. I look forward to spending more time

with all of them.

CAPS Research is a superb organization that deserves your continued support –

I hope you will continue to do so.

Best Regards,

Phil

Phillip L. Carter, D.B.A.Executive Director

CAPS Research

Harold E. Fearon Chair of Purchasing

Arizona State University

Members of the Executive Advisory Board from 1995 – 2014

Name Year Served

Sid Brown, C.P.M. 1995

Dan Carroll Jr. 1995

Nancy C. Cummings, C.P.M. 1995

Stephen J. Ketterer 1995

Thomas J. Lee 1995

Harriet Michel 1995

Darrell D. Rott 1995

Raymond C. Stark, C.P.M. 1995

R. Jerry Baker 1995 - 1996

John Cologna, C.P.M. 1995 - 1996

Robert Dunn 1995 - 1996

Eberhard E. Scheuing, Ph.D., C.P.M. 1995 - 1996

Larry Smeltzer, Ph.D., C.P.M. 1995 - 1996

Maxine S. Keston, C.P.M. 1995 - 1997

Sherry J. Schaub, C.P.M. 1995 - 1997

Colin Male 1995 - 1998

Charles A. Lileikis 1995 - 2000

Stewart L. Beall, C.P.M. 1995 - 2002

Helmut F. Porkert, Ph.D. 1995 - 2004

Joseph Yacura 1995 - 2005

Harold E. Fearon, Ph.D., C.P.M. 1995 - 2014

Herwig Baumann 1996

Alan E. Cummins 1996

Fred McClintock 1996 - 1997

Jeffrey S. Inselmann 1996 - 1998

Alex M. Munn 1996 - 2000

Barbara B. Lang 1996 - 2001

Edwin S. Coyle, Jr., C.P.M. 1996 - 2002

R. David Nelson, C.P.M. 1996 - 2005

David L. Sorensen 1996 - 2007

Robert Kemp, Ph.D., C.P.M. 1997

Charles A. Peters 1997

John Zoesch, Jr. 1997 - 1998

Alan R. Raedels, Ph.D., C.P.M. 1997 - 1999

Name Year Served

Larry Penley, Ph.D. 1997 - 2002

Stephen G. Welch 1997 - 2002

Paul Novak, C.P.M., A.P.P. 1997 - 2012

Jim Scotti 1997 - 2013

Richard D. Rich, C.P.M., A.P.P. 1998

Andy Icken 1998 - 1999

Louis P. Vaccarelli 1998 - 2001

Carl M. Curry 1998 - 2002

Edith Kelly-Green 1998 - 2002

William L. Ramsey 1998 - 2005

Richard A. Kotler 1999 - 2001

Jose Mejia 1999 - 2001

Samuel L. Straight 1999 - 2001

Edward P. Hoffman 1999 - 2003

Robert M. Monczka, Ph.D., C.P.M. 1999 - 2014

Richard V. Bradshaw, C,P.M. 2000

Lisa M. Ellram, Ph.D., C.P.M. 2000 - 2002

Cathy Wining 2001

Kenneth L. Carty 2001 - 2006

William Nahill 2002 - 2004

A. Keith Strange 2002 - 2005

Daniel Krouse 2002 - 2006

Vic Venettozzi 2002 - 2006

Craig C. Brown 2002 - 2007

Vincent J. Hrenak 2002 - 2007

Philip Regier, Ph.D. 2003

Willie Deese 2003 - 2004

Becky Lancaster 2003 - 2005

James Patterson, Ph.D., C.P.M., A.P.P. 2003 - 2005

Kathleen R. Fuller 2003 - 2007

Anthony S. Nieves, C.P.M. 2003 - 2007

Maureen P. Merkle 2004 - 2007

Cecil R. House 2004 - 2009

Robert Mittelstaedt, Jr. 2004 - 2013

CAPS Research Team from 1995 – 2014(in order of date of hire)

Name Year Served

Theresa M. Metty, C.P.M. 2005

Judith Hollis 2005 - 2007

Bradley J. Holcomb 2005 - 2012

Mary McDaniel 2005 - 2009

James Hart 2006

Donald Klock, C.P.M. 2006 - 2007

Terry Sueltman 2006 - 2007

Jean Baderschneider 2006 - 2008

Farryn Melton, C.P.M. 2006 - 2012

Christie Breves, C.P.M. 2006 - 2014

Tim Fiore, C.P.M. 2006 - 2014

Casey McDowell 2007

John Gundersen 2007 - 2011

Susan Brownell 2007 - 2014

Beverly Gaskin 2007 - 2014

Leo Lonergan 2008 - 2012

Vince Messimer 2008 - 2014

Michael E. Slomke, C.P.M. 2008 - 2014

Timothy S. Harden 2009

James A. Ward 2009 - 2011

Name Year Served

Thomas K. Linton 2009 - 2012

Timothy W. Coats 2009 - 2013

Dan Rooker 2009 - 2013

Keith P. Weber 2009 - 2013

Jeffrey M. Wood 2009 - 2014

Kevin Petrie 2010 - 2014

Deborah Stanton 2010 - 2014

Shelley Stewart, Jr. 2010 - 2014

Jill Bossi 2013 - 2014

Tom Derry 2013 - 2014

David Hammerle 2013 - 2014

Amy Hillman, Ph.D. 2013 - 2014

Carl Oberland 2013 - 2014

Jackie Sturm 2013 - 2014

David Wohler 2013 - 2014

Daniel Carrell 2014

John Fowler 2014

Maria Lindenberg 2014

Colleen Soukup 2014

Carol Ketchum

Thomas Hendrick, Ph.D.

Richard Boyle

Maureen Graff

Debra Langdon

Jennifer Richelsoph

Karen Spitler

Tammy Schwerman

Kerri Christiansen

Carmen Mioni

Kathleen Chester

Robert Monczka, Ph.D.

Sheri Rhine

Clare Donnalley

Kristin Thies

Kim Dixon-Williams

Debbie Maciejewski

Stewart Beall

Steven Wade

Stephen Koch

Janice Willoughby

Roberta Jennings

Miranda Kuhns

Gail Promponas

Joseph Carter, DBA

Ryan Sandhaus

Priscilla Hernandez

Kristina Cahill

Geoffrey Zwemke

Jerrett Chambers

Letter from the Chair

Timothy R. Fiore, CPSM, C.P.M., MCIPS

Chair, Executive Advisory Board, CAPS Research

Chief Procurement Officer

ThyssenKrupp North America, Inc.

M anaging a global supply chain and supply organization is full of challenges

and opportunities.

The challenges are clear to those of us who hold leadership positions.

We juggle many pressures that demand our constant attention. Some of them include

mitigating and responding to risk; increased pressure to drive out costs; finding and

developing smart people and retaining knowledge from those retiring; complying with

government regulations; managing sourcing offices spread around the globe; improving

efficiency and processes required to manage and develop thousands of suppliers; price

and supply volatility of key commodities; keeping an eye on the triple bottom line; and

constantly demonstrating the value of the supply profession to the C-Suite.

The opportunities? There is still a long way to go to master global business, with

all its market peculiarities as well as the points raised above. As supply management

continues to mature as a critical enterprise-wide function, it takes strategic insight and

thinking to recognize new ways to cut cost, pull innovation from the supply base, tackle

the procurement of services not traditionally sourced through procurement, and use

data and data analysis effectively, to name a few. The expectation is that we consistently

deliver value.

Where do the top procurement professionals go to develop the strategic framework

necessary to face the challenges and recognize the opportunities developing on the

horizon? To CAPS Research. The hard-working team at CAPS Research creates bench-

marking reports, research publications, and world-class events that give the insight

and provide the critical dialogue necessary to help shape some of our most important

decisions.

I encourage CPOs and other supply executives to take advantage of CAPS Research’s

unbiased approach to research and confidence from knowing it is supported by the top

global companies, the Institute for Supply Management®, and the W. P. Carey School of

Business at Arizona State University. This unique and enduring partnership between

business professionals, academia and a nonprofit representing the procurement and

supply management function is what separates CAPS Research from other organizations.

Its insight into future events and its rigor in investigating potential outcomes can’t be

matched by any other organization. Join us to help build a better operating function

serving our internal and supplier customers in the decades to come.

Sincerely,

Tim Fiore

Executive Advisory Board

Christine Breves, C.P.M.Vice-Chair

Vice President and Chief Procurement OfficerU.S. Steel

Kevin BrownVice President, Global Operations & Chief Supply Chain OfficerDell Inc.

Vince MessimerVice President, Contracting & ProcurementRoyal Dutch Shell plc

Susan BrownellVice President, Supply ManagementU.S. Postal Service

Robert M. Monczka, Ph.D., C.P.M.Director, Strategic Sourcing & Supply Chain Strategy ResearchCAPS Research

Daniel Carrell Vice President, Client Services Procurement, IBM Integrated Supply ChainIBM

Carl F. Oberland Vice President, Supply Chain Management North AmericaSiemens Industry, Inc.

Kevin PetrieVice President and Chief Procurement OfficerNestlé

Phillip L. Carter, D.B.A.Executive DirectorCAPS Research

Harold E. Fearon, Ph.D., C.P.M.Director EmeritusCAPS Research

Timothy R. Fiore, CPSM, C.P.M.Chair Chief Procurement OfficerThyssenKrupp North America, Inc.

Michael E. SlomkeVice President and Chief Procurement OfficerHoneywell International Inc.

Colleen SoukupVice President, Worldwide SourcingGeneral Mills, Inc.

Deborah StantonChief Procurement OfficerMasterCard Worldwide

Shelley Stewart, Jr.Vice President and Chief Procurement OfficerDupont

John Fowler, Ph.D. Chair, Supply Chain Management - W. P. Carey School of BusinessArizona State University

David A. HammerlePrincipal Vice President, Corporate Manager of Procurement and ContractsBechtel Corporation

Beverly Gaskin, CPSMGlobal Purchasing Supply Chain Executive DirectorGeneral Motors Company

Jacklyn A. SturmVice President & GM Global Sourcing and ProcurementIntel Corporation

Jill B. Bossi, C.P.M.Vice President and Chief Procurement OfficerThe American National Red Cross

Amy Hillman, Ph.D. DeanW. P. Carey School of BusinessArizona State University

Maria Lindenberg Chief Procurement OfficerChevron Corporation

Jeffrey M. WoodVice President, Global ProcurementAllegion

David E. Wohler, C.P.M.Vice President, Global SourcingCovidien

Thomas W. DerryChief Executive OfficerInstitute for Supply Management®

Member CompaniesMember companies supporting the research program annually with a $25,000 contribution (our Platinum members) or with a $15,000 contribution are ensured access to all research results through our website, participation in benchmarking surveys, and receive invitations to participate in the Executive Roundtables, Best Practices Workshops, and Critical Issues/Partnership forums.

We are especially grateful to our Platinum Members whose generous contributions greatly enhance the mission of CAPS Research in developing the field of supply management. CAPS Research provides Platinum Members with complimentary seats at both of our pre-mier events, the International Executive Roundtable for Chief Procurement Officers, and the Best Practices Workshop for Senior Man-agers. We benefit not only from their commitment but from their supply management expertise in evidence at these organizations.

3M

Adobe Systems Incorporated

Amgen Inc.

Celanese Corporation

Chevron Corporation

Eskom Holdings Ltd

ITT Corporation

Novo Nordisk, Inc.

Pacific Gas and Electric Company

Pfizer Inc.

Raytheon Company

Royal Dutch Shell plc

Siemens AG

Teradyne

We acknowledge the generous support of the member compa-nies below, who provide $15,000 annually to ensure full participa-tion in our research and global events, the Executive Roundtables, Best Practices Workshops, and Critical Issues/Partnership forums.

AbbVie Inc.

Alcoa, Inc.

Allegion

American Electric Power Company, Inc.

American National Red Cross

American Water Works Company, Inc.

APL Logistics, Ltd.

Arizona Public Service Company

AT&T Services, Inc.

B/E Aerospace, Inc.

BAE SYSTEMS

BBVA

Bechtel Corporation

BHP Billiton

Biogen Idec Inc.

Boeing Company

Bonneville Power Administration

BP America Inc.

Bristol-Myers Squibb Company

CareFusion Corporation

Cessna Aircraft Company

Chevron Phillips Chemical Company LP

Colfax Corporation

ConAgra Foods, Inc.

ConocoPhillips

CONSOL Energy Inc.

Covidien

Cummins Inc.

Deere & Company

Dell Inc.

Diageo

Diebold, Incorporated

Dominion Resources Services, Inc.

Dräger Medical Systems, Inc.

Dresser-Rand Group Inc.

DTE Energy

Duke Energy Corporation

DuPont

DynCorp International Inc.

EADS N.V.

Emerson Process Management

Eni S.p.A.

ExxonMobil Global Services Company

FedEx Express

First Data Corporation

Fluor Corporation

PLATINUM: $25,000

$15,000

Freeport-McMoRan Copper & Gold Inc.

General Dynamics Corporation

General Mills, Inc.

General Motors Company

Goodyear Tire & Rubber Company

Henkel Corporation

Hess Corporation

Hitachi America, Ltd.

Honda of America Mfg., Inc.

Honeywell International Inc.

Huawei Technologies Co., Ltd.

IBM

Intel Corporation

International Paper Company

Kerry Group plc

L-3 Communications

Marathon Petroleum Company

MasterCard Worldwide

Medtronic, Inc.

NAV CANADA

Nestlé USA

Nexen Energy, ULC

Nilfisk-Advance, Inc.

NiSource Corporate Services

Northrop Grumman Corporation

NRG Energy, Inc.

Parker Aerospace

Petrobras/Petroleo Brasileiro S.A.

Phillips 66

Plains All American Pipeline, L.P.

PNM Resources, Inc.

PPL Corporation

Premier Health Partners, Inc.

Procter & Gamble Company

PSEG Services

Repsol YPF

Rio Tinto

Rolls-Royce

Royal Philips Electronics N.V.

Ryder System, Inc.

SABIC Innovative Plastics

Salt River Project (SRP)

Schneider Electric North America

Sime Darby Berhad

Sinopec Group, the Procurement Division

Sonoco Products Company

Southern California Edison

Statoil ASA

Suncor Energy Inc.

Terex Corporation

Tesoro Corporation

Texas Instruments, Incorporated

ThyssenKrupp NA

TransCanada Pipelines Ltd.

Tyco International Management Company

U.S. Postal Service

U.S. Steel

United States Air Force

VALE S.A.

Walt Disney Company

Xcel Energy Inc.

Contributors to Special Benchmarking ProjectsWe thank the following organizations that have given signif-icant support for specific benchmarking research projects in 2013.

Alyeska Pipelines

B&W Pantex

Electric Utility Industry Sustainable Supply Chain Alliance

International Aerospace Quality Group

Investment Recovery Association

Texas Industries, Inc.

TPI Inc.

U.S. Department of Energy

Vectren Corporation

Founding OrganizationsCAPS Research greatly appreciates the support and guid-ance it receives from the Institute for Supply Management® and the W. P. Carey School of Business at Arizona State University.

$15,000

Summary of Financial Information

STATEMENTS OF FINANCIAL POSITION YEARS ENDED AUGUST 31, 2013 AND 2012*

2013 2012

Current assets: Cash $ 200 $ 200 Money market investments and funds at ASU 1,721,754 1,931,408 Accounts receivable 84,900 106,488 Prepaid expenses 16,582 27,041

Total current assets $ 1,823,436 $ 2,065,137

Property and equipment, net 53,071 60,926

Total assets $ 1,876,507 $ 2,126,063

Current liabilities: Total current liabilities $ 102,670 $ 196,162 Net assets 1,799,329 1,929,901

Total liabilities and net assets $ 1,901,999 $ 2,126,063

STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS YEARS ENDED AUGUST 31, 2013 AND 2012*

Percent of Percent of Rev/Exp Rev/ExpSupport and revenue: Contributions $ 1,757,937 83% $ 1,890,710 84% ISM cash contributions 226,300 11% 226,300 10% Event revenue 123,766 6% 142,068 6% Investment income - 0% 132 0%

Total support and revenue $ 2,072,003 100% $ 2,264,262 100%

Expenses: Research $ 1,757,937 80% $ 1,780,859 79% Fundraising 181,094 8% 206,075 9% Administrative 263,544 12% 277,328 12%

Total expenses $ 2,202,575 100% $ 2,264,262 100%

Changes in net assets $ (130,572) $ (5,052)

Net assets, beginning of year 1,929,901 1,934,953

Net assets, end of year $ 1,799,329 $ 1,929,901

*The balances include funds held by Arizona State University that are not included in the combined financial statements of the Institute for Supply Management®.

Since 1986, CAPS Research has been providing thorough, practical research for our strategic-minded corporate members and forward looking insights for the academic community as the leading non-profit supply chain research organization.

With CAPS Research, you get strategic research reports, best-in-class benchmarking, and

networking events without hidden agendas.

Not for profit. For possibility.

A name you can trust

2055 East Centennial Circle | Tempe, AZ 85284 | 480-752-2277 www.capsresearch.org

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