DeCA - The American Logistics Association

Report
DEFENSE COMMISSARY AGENCY
Your Commissary … It’s Worth the Trip!
DeCA Update
American Logistics Association 67th Annual Convention
Mr. Joseph H. Jeu
Director
October 28, 2014
Your Commissary … It’s Worth the Trip!
Taking Care of Military Families
Defense Commissary Agency
Your Commissary … It’s Worth the Trip!
Why customers say,
“The Commissary … It’s Worth the Trip!”
A DeCA Video Presentation
Your Commissary … It’s Worth the Trip!
2
Political Landscape
Defense Commissary Agency
• Budget update
– DoD budget proposed a phased reduction
of $200M
in the Trip!
Your Commissary
… It’s Worth
FY15, $600M in FY16, and $1B in FY17
– FY15 continuing resolution funds DeCA at FY14 level
• House, Senate rejected DoD’s legislative proposal
– House NDAA directs study by an independent grocery
expert on impact of budgetary proposal of commissary
operations including the addition of private label items
– SASC report requires a less detailed study than that
requested by the House for submission to the MCRMC
– House restored $100M and the Senate $200M in funding
Your Commissary … It’s Worth the Trip!
3
FY14 Sales and Transactions
Defense Commissary Agency
• FY14 Sales: $5.625 billion
… It’s Worth the Trip!
• Momentum from last halfYourofCommissary
the year
– Case Lot Sales re-instated
– Monthly sales meetings
– Guard & Reserve on-site sales
Your Commissary … It’s Worth the Trip!
4
FY15 Sales Goal
Defense Commissary Agency
$5.8 Billion
Your Commissary … It’s Worth the Trip!
• About 3% over FY 2014 Sales
• With your support – We Can Do It!
Your Commissary … It’s Worth the Trip!
5
Vision & Strategies – Set in 2012
Defense Commissary Agency
• New Vision – Understand our Customers and
Your Commissary … It’s Worth the Trip!
st
Deliver a 21 Century Commissary Benefit
• Established Key Strategies
– Study and support consumer shopping trends - leverage
social media to gain insight into our evolving customers
– Explore emerging concepts such as electronic and mobile
commerce and other business model improvements
– Employ new efficiencies in construction, technology and
operations
Your Commissary … It’s Worth the Trip!
6
Strategy – Manage Customer Relations
Defense Commissary Agency
• I.D. Card Scanning
Your Commissary … It’s Worth the Trip!
• Branding Study
– Creates a “Commissary” culture
– Improves standardization and
consistency
• Social Media
Your Commissary … It’s Worth the Trip!
7
Sales Flyer
Defense Commissary Agency
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
8
Strategy - Value Brand Program Re-energized
Defense Commissary Agency
• Commissary sells value
brands at lower prices
Your Commissary … It’s Worth the Trip!
– Significantly lower prices than
other national brands within
commissary
– Equal or lower prices than
other retailers’ average inhouse or private label brands
• DeCA plans to spotlight
Value Brand
– Easier to see on the shelves
Your Commissary … It’s Worth the Trip!
9
Strategy - Health & Wellness Initiatives
Defense Commissary Agency
• HBI/Better for You
Your Commissary … It’s Worth the Trip!
• Natural & Organic
• Healthier Eating
The commissary is one of the most important tools you have for
the health and well-being of the military in this country.
– Senator Barbara Mikulski
Your Commissary … It’s Worth the Trip!
10
Strategy – E&M Commerce and Store Formats
Defense Commissary Agency
• CLICK2GO
– Three locations (Fort Lee, Offutt
Travis
YourAFB,
Commissary
… It’sAFB)
Worth the Trip!
– Meeting pilot metrics
• Rewards Card
– Continued acceptance and growth
– Digital Coupons
• Commissary Apps
• Warehouse Format
− Hybrid at Imperial Beach
− Club Store in a Store at McChord AFB
Your Commissary … It’s Worth the Trip!
11
Strategy – Ongoing Efficiencies
Defense Commissary Agency
• Construction
– Standard design
– Lower cost construction alternativesYour Commissary … It’s Worth the Trip!
– Third party construction study
• Technology
– EBS/CARTS
• Operations
– Store level efficiencies (Electronic Shelf Labels, SCO)
– Commercial Activities contract reviews
– Workforce Analysis
Your Commissary … It’s Worth the Trip!
12
New Construction Completed in 2014
Defense Commissary Agency
Pittsburgh Area, PA
New London, CT
Your Commissary … It’s Worth the Trip!
Congressionally Funded
Opened October 21
Opened April 16
Gunter Annex, Maxwell AFB, AL
Annapolis, MD
Surcharge Funded
Surcharge Funded
Opened September 10
Surcharge Funded
Your Commissary … It’s Worth the Trip!
Opened August 5
13
DEFENSE COMMISSARY AGENCY
Your Commissary … It’s Worth the Trip!
Thank You!
For your continuing support
of our patrons and this benefit
Your Commissary … It’s Worth the Trip!

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