2014 Annual Report

Our Mission…We empower supply chain professionals

with profound discovery, powerful

connection, and clear foresight.

CAPS Research greatly appreciates the support and guidance it receives from the W. P. Carey School of Business at Arizona State University, the Institute for Supply Management®, and the executives from our member compa-nies. CAPS Research is poised to continue shaping the supply management profession well into the future.

New Leadership Team at CAPS Research

Deborah Stanton and Professor Thomas Choi assume joint leadership of CAPS Research.

Joining CAPS Research as Executive Managing Director in August, Deborah Stanton brings 27 years of procurement leadership experience from MasterCard, Whirlpool, Temple-Inland, and Honeywell. She recently resigned her position as Chief Procurement Officer and Group Executive at MasterCard to assume the new role.

Professor Thomas Choi has joined CAPS Research as the Executive Director of Research, as well as the Harold E. Fearon Chair of Purchasing at Arizona State Uni-versity, and continues his role as a Professor of Supply Chain Management at the W. P. Carey School of Business at Arizona State University. Professor Choi brings many years of acclaimed research experience on such topics as supply networks, service outsourcing, buyer-supplier relationships, and supply base management.

Deborah K. StantonExecutive Managing DirectorCAPS Research

Thomas Choi, Ph.D.Harold E. Fearon Chair of Purchasing Management and Executive DirectorCAPS Research

Letter from the Executive Directors

We are both excited to have taken up the leadership of CAPS Research this year, and we look forward to the challenges ahead.

We are fortunate to inherit a strong organization led until this summer by Dr. Phillip Carter, whose 19 years at the helm helped lay the foundation for what we can so con-fidently build upon. Of course, we are also fortunate to receive guidance from the 26 members of the Executive Advisory Board, whose commitment to our mission inspires us both. We value the collaboration we have with our strategic partners at Arizona State University and the Institute for Supply Management®.

Here is what we see ahead. We want to make CAPS Research the “top-of-mind” resource for supply management professionals worldwide, especially in the Global 1000 companies. We want them to think of us first when they are searching for substantial, unbiased research. Always encouraged by the superb support from our member companies, we want to publish our research faster, further, and more frequently, in established and in growing economies, in new industry sectors, and through new media channels. We have some interesting focus studies in develop-ment on supply chain financing, cloud services sourcing, and supply chain visibility.

We are excited about member companies taking full advantage of our bench-marking services. We will be addressing current topics such as sustainability, risk, and the “voice of the supplier.” Companies continue to recognize the value in mea-suring up and moving forward.

We will continue hosting networking events that make a difference to procurement and supply management professionals with plans to expand our offerings in Europe and Asia. We maintain a vendor-free, consultant-free environment to enhance candid conversation and sharing. Participants have the ability to freely discuss their chal-lenges, make vital connections with fellow professionals, and exchange best practices.

We are both committed to making a difference in the world of supply manage-ment, and we are equally committed to advancing CAPS Research as the best orga-nization to bridge the worlds of ideas and practice. We invite you to join us for the work ahead!

Regards, Deborah and Thomas

Letter from the Chair

Christine Breves, C.P.M., Chair, Executive Advisory

Board, CAPS Research

Vice President and Chief Procurement Officer

United States Steel Corporation

When I look back at how far the Supply Management function has advanced over the last couple of decades, it’s difficult to imagine what that journey would have been like without CAPS Research.  This unbiased non-profit has played a crucial role in communicating the value supply management can bring and in helping us get a “seat at the table.”  Much of that help came through the leadership of former executive director, Phil Carter, who retired in August of 2014.  

When I look to the future, this organization will continue to play a critical role in advancing the strategic importance of the CPO and Supply Management.  CAPS Research is fortunate to have a new dynamic team – Deb Stanton and Tom Choi – leading this charge.  Under their guidance, changes are coming to CAPS Research that will impact the profession. I’m excited to be part of that effort.

As the incoming Chair of the Executive Advisory Board for CAPS Research, I am committed to helping make our strategies more relevant and timely than ever.  I’m fortunate to have the strong foundation my predecessor, Tim Fiore, has already laid, and I am surrounded by a bright and talented group of fellow CPOs serving on the board with me.

We are poised at a crucial time in our history to deliver value to our companies in new ways.  Under the leadership of Deb and Tom, CAPS Research will be at the fore-front of the thinking and research that we need for such breakthrough growth.

If ever there was a perfect time to get involved with CAPS Research, it’s right now.  

Sincerely, Christine

Executive Advisory Board

Stewart AtkinsonChief Purchasing Officer, Product SupplyProcter & Gamble Company

David A. HammerleVice-Chair

Principal Vice President, Corporate Manager of Procurement & ContractsBechtel Corporation

Deborah K. StantonExecutive Managing DirectorCAPS Research

Jaime Bohnke, Ph.D.Vice President Supply Chain, Chief Procurement OfficerPPL Corporation

Amy HillmanW. P. Carey School of BusinessDeanArizona State University

Christine Breves, C.P.M.Chair

Vice President and Chief Procurement OfficerU.S. Steel

Vincent J. HrenakVice President Supply Chain Space and Airborne SystemsRaytheon Company

Shelley Stewart, Jr.Vice President, Sourcing and Logistics and Chief Procurement OfficerDuPont

Kevin BrownVice President and Chief Procurement OfficerDell Inc.

Maria LindenbergChief Procurement OfficerChevron Corporation

Jacklyn A. SturmVice President, Technology Manufacturing Group & GM Global Sourcing and ProcurementIntel Corporation

Daniel CarrellVice President, IBM Integrated Supply ChainIBM

Pam McGinnisChief Procurement OfficerPhillips 66

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

Thomas Choi, Ph.D.Harold E. Fearon Chair of Purchasing Management and Executive DirectorCAPS Research

Vince MessimerVice President – ProcurementRoyal Dutch Shell PLC

Jeffrey M. WoodVP of Global ProcurementAllegion

Thomas W. DerryChief Executive OfficerInstitute for Supply Management® (ISM®)

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

Joseph A. YacuraVice President & Chief Procurement Officer Corporate ProcurementFannie Mae

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

Kevin PetrieSenior Vice President and Head of ProcurementNestlé

Timothy R. Fiore, CPSM, C.P.M.Former Senior Vice President Supply ManagementThyssenKrupp NA

Michael E. Slomke, C.P.M.Vice President and Chief Procurement OfficerHoneywell International Inc.

John Fowler, Ph.D.W. P. Carey School of Business Chair, Supply Chain ManagementArizona State University

Colleen SoukupVice President, Worldwide SourcingGeneral Mills, Inc.

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, 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 our mission to provide them with practitioner-focused research studies, benchmarking services, and networking events. CAPS Research provides Platinum members with complimentary seats at our premier multi-day events, the International Executive Roundtable for Chief Procurement Officers, and the Best Practices Workshop for Directors. We benefit not only from their commitment but from the supply management expertise in evidence at their organizations.

Celanese Corporation

Chevron Corporation

Novo Nordisk, Inc.

Pacific Gas and Electric Company

Raytheon Company

Royal Dutch Shell plc

Siemens AG

Teradyne

We acknowledge the generous support of the member companies below, who provide $15,000 annually to ensure full access to all our research studies, benchmarking services, and participation in the multi-day Executive Roundtables, Best Practices Workshops, and Critical Issues events.

3M Company

AbbVie Inc.

Agilent Technologies, Inc.

Airbus Group

Allegion

American Electric Power Company, Inc.

American National Red Cross

American Water Works Company, Inc.

Apache Corporation

APL Logistics, Ltd.

ArcelorMittal Dofasco Inc.

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

CB&I Constructors, Inc.

Cessna Aircraft Company

Chesapeake Energy Corporation

Chevron Phillips Chemical Company LP

Colfax Corporation

ConAgra Foods, Inc.

ConocoPhillips

CONSOL Energy Inc.

Covidien

Cummins Inc.

Deere & Company

Dell Inc.

Diebold, Incorporated

Dominion Resources Services, Inc.

Dräger Medical Systems, Inc.

Dresser-Rand Group Inc.

DTE Energy

Duke Energy Corporation

DuPont

DynCorp International Inc.

Eaton

Elbit Systems of America

Emerson Process Management

Eni S.p.A.

ExxonMobil Global Services Company

Fannie Mae

FedEx

PLATINUM: $25,000

$15,000

First Data Corporation

Fluor Corporation

Freddie Mac

Freeport-McMoRan Copper & Gold Inc.

General Dynamics Corporation

General Mills, Inc.

General Motors Company

Hitachi America, Ltd.

Honda of America Mfg., Inc.

Honeywell International Inc.

Huawei Technologies Co., Ltd.

IBM

Intel Corporation

Kerry Group plc

L-3 Communications

Lincoln Financial Group

Lockheed Martin Corporation

Maersk Olie og Gas A /S

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.

Pacific Rubiales Energy Corp.

Parker Aerospace

Petrobras/Petroleo Brasileiro S.A.

Pfizer Inc.

Phillips 66Plains All American Pipeline, L.P.

PNM Resources, Inc.

PPL Corporation

Premier Health Partners, Inc.

Procter & Gamble Company

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

Statoil ASA

Suncor Energy Inc.

Terex Corporation

Teva Pharmaceuticals

Texas Instruments, Incorporated

ThyssenKrupp NA

Toyota Industries North America

TransCanada Pipelines Ltd.

U.S. Postal Service

U.S. Steel

United States Air Force

Vale S.A.

Wipro Ltd.

Xcel Energy Inc.

Contributors to Special Benchmarking ProjectsWe thank the following organizations that subscribed to benchmarking or gave significant support for specific benchmarking research projects in 2014.

Alyeska Pipeline Service Company

CNS Pantex

DOE

Douglas Dynamics LLC

Horizon Blue Cross Blue Shield of New Jersey

International Aerospace Quality Group

Investment Recovery Association

Mallinckrodt LLC

Remy International Inc.

Texas Industries, Inc.

TPI Inc.

Vectren Corporation

$15,000

Summary of Financial Information

STATEMENTS OF FINANCIAL POSITION YEARS ENDED AUGUST 31, 2014 AND 2013*

2014 2013Current assets: Cash $ 200 $ 200 Money market investments and funds at ASU 1,818,465 1,747,245 Accounts receivable 50,700 84,900 Prepaid expenses 13,689 16,582

Total current assets $ 1,883,054 $ 1,848,927

Property and equipment, net 64,330 53,071

Total assets $ 1,947,384 $ 1,901,998

Current liabilities: Total current liabilities $ 128,246 $ 102,670 Net assets 1,819,138 1,799,329

Total liabilities and net assets $ 1,947,384 $ 1,901,999

STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS YEARS ENDED AUGUST 31, 2014 AND 2013*

Percent of Percent of Rev/Exp Rev/ExpSupport and revenue: Contributions $ 1,690,434 93% $ 1,721,937 83% ISM cash contributions - 0% 226,300 11% Event revenue 132,450 7% 123,766 6% Investment income - 0% - 0%

Total support and revenue $ 1,822,884 100% $ 2,072,003 100%

Expenses: Research $ 1,225,280 68% $ 1,757,937 80% Fundraising 298,810 17% 181,094 8% Administrative 278,985 15% 263,544 12%

Total expenses $ 1,803,075 100% $ 2,202,575 100%

Changes in net assets $ 19,809 $ (130,572)

Net assets, beginning of year 1,799,329 1,929,901

Net assets, end of year $ 1,819,138 $ 1,799,329

*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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