- The American Logistics Association

Report
Defense Commissary Agency
Keith C. Hagenbuch
Executive Director, Store Operations
Our Mission and Vision
Mission
Deliver a vital benefit of the military pay system that sells grocery
items at cost while enhancing quality of life and readiness
Vision
Understand our customers and deliver
a 21st century commissary benefit
Non-pay Compensation Benefit that Improves
Quality of Life for Uniformed Service Members
2
DeCA ‘s Oversight
Commissary
Board of Directors
USD/P&R
Operations
Oversight
Policy
DeCA
HEADQUARTERS
Field
Operating
Activities
Fort Lee, VA
3
DeCA Board of Directors
 Provides advice regarding the prudent operation of the commissary system
and assists in the overall supervision of DeCA
 Serves as Military Services’ representation on all commissary matters
 Recommends policy changes
 Determines the level of customer service to be provided in balance with
available resources
 Promotes knowledge and understanding of the commissary benefit within
the military community
 Monitors DeCA’s performance
 Reviews and recommends approval of:
–
–
–
–
–
Commissary establishments, continuations and closures
Capital investment programs
Annual budget
Strategic and performance plans
Annual report
4
DeCA Board of Directors
 Three Service Logistics/Installations Deputy Chiefs and one
Personnel Deputy Chief (Air Force)
 Three Personnel/Manpower Deputy Assistant Secretaries
 Four Service Senior Enlisted Advisors
 Chair rotated among Service Senior Uniformed Officers;
Committee Chairs on same rotation schedule
 DeCA Washington Office serves as executive secretary
 DeCA Director provides information, advises and recommends
5
DeCA Board of Directors Chair
 Represents Board in advising USD(P&R) on
commissary policies and operations and on delivery of
the benefit
 Recommends selection of DeCA Director
 Supervises and rates DeCA Director
 Recommends next Chair to USD(P&R)
 Designates Board Executive Secretary
 Convenes and conducts meetings
6
Defense Commissary Agency
Previous Organizational Chart
OFFICE OF
INTERNAL AUDIT
*DIRECTOR/
CHIEF EXECUTIVE OFFICER
CSM/SEA
OFFICE OF
GENERAL COUNSEL**
OFFICE OF
INSPECTOR GENERAL
*CHIEF OPERATING OFFICER/
DEPUTY DIRECTOR
DeCA
WASHINGTON OFFICE
HEADQUARTERS
SUPPORT OFFICE
*CHIEF OF STAFF
*DIRECTOR
DeCA WEST
(MCCLELLAN, CA)
*DIRECTOR
DeCA EUROPE
(KAPAUN AS, GE)
*DIRECTOR
DeCA EAST
(FORT LEE, VA)
ZONES
(12)
ZONES
(4)
ZONES
(11)
STORES
( 111)
STORES
(40)
STORES
(96)
SALES
DIRECTORATE
PERFORMANCE
& POLICY
DIRECTORATE
RESOURCE
MANAGEMENT
DIRECTORATE
HUMAN
RESOURCES
DIRECTORATE
CORPORATE
COMMUNICATIONS
DIRECTORATE
INFORMATION
TECHNOLOGY
DIRECTORATE
CORPORATE
PLANNING
DIRECTORATE
PUBLIC HEALTH
& SAFETY
DIRECTORATE
CONTRACTING
DIRECTORATE
EEO
DIRECTORATE
WORKFORCE
DEVELOPMENT
DIRECTORATE
* Denotes SES position
**DeCA General Counsel is part of the Defense Legal Services Agency
7
DeCA Reorganization
 Secretary Gates’ memorandums directed initiatives to
– Reduce duplication, overhead, and excess
– Instill a culture of savings and cost accountability across DoD
 Restructured to a flatter, more corporate structure
– Reduced overhead and supervision
– Eliminated areas of functional overlap
– Integrates decision-making and increases agility
in execution
8
Defense Commissary Agency
Senior Enlisted
Advisor
Director / Chief Executive Officer
General Counsel
Inspector General/Security
Deputy / Chief Operating Officer
Internal Audit
Washington Office
EEO
Executive Services
Division
Executive Director
Store Operations
Executive Director
Sales, Marketing & Policy
CONUS and OCONUS
Stores
Store Support
Executive Director
Logistics and Engineering
Operations & Policy
Engineering
Requirements and
Strategic Integration
Sales
Acquisition
Management
Corporate
Communications
Health & Safety
Logistics
Resale Contracting
Yellow blocks - ALL assets geographically dispersed
Green blocks - assets located at Ft Lee & geographically dispersed
Corporate Planning
Resource Management
CDC and CMPP
Blue blocks - ALL assets at Fort Lee
Executive Director
Business Enterprise
Human Resources
Information Technology
9
Organizational Refinement
Command requested review/revision of organization
Driving forces behind review:
– Focus on performance and results
– Restructure to balance loss of 4th Group SES
– Realign resources to achieve Vision & strategies
Future capabilities key factor in achieving the Vision
–
–
–
–
business systems – e-commerce
social media = engaging our customers
format changes
streamlined, less expensive processes
10
Organizational Realignment
Senior Enlisted Advisor
Director / Chief Executive Officer
Resource Management
General Counsel
Inspector General
Deputy / Chief Operating Officer
Washington Office
Strategic Planning
Chief Performance Officer
EEO
Executive Director
Store Operations
CONUS and
OCONUS Stores
(PAO, CPI and ESD)
Executive Director
Infrastructure Support
Executive Director
Sales, Marketing & Policy
Operations & Policy
Logistics
Business
Requirements Cell
Sales
Store Support
Human Resources
Business
Development
E-Commerce
Shopper Insights
Health & Safety
CDC and CMPP
Equip/Property Acct
& Environmental
Information Technology
Program
Management
Resale Contracting
Blue blocks - ALL assets at Fort Lee
Engineering
Yellow blocks - ALL assets geographically dispersed
Green blocks - assets located at Ft Lee & geographically
dispersed
Acquisition
Management
11
Store Operations Group
Executive Director
Store Operations
Store Operations
Support
East Area
Central Area
Zones – 6
Stores – 49
Zones – 5
Stores – 47
Fort Lee, VA
Europe Area
Zones – 4
Stores – 40
Kapaun AS, GE
West Area
Zones – 7
Stores – 68
Pacific Area
Zones – 4
Stores – 43
McClellan, CA
12
New Store Openings
Fort Carson, CO – May 9
K-16, ROK – May 17
Fort Campbell, KY – June 13
13
DeCA Profile
 DeCA sells groceries at cost plus 5% surcharge
 Savings over 30% vs. commercial stores DeCA-wide
– Family of Four can save over $4,500 annually
– Family of Three can save over $3,500 annually
– A Couple can save over $2,800 annually
– Singles can save over $1,500 annually
 Savings over 48.5% vs. commercial stores in Hawaii
14
Defense Commissary Agency
By the numbers:
248 Commissaries
13 Countries
2 Territories
17,000 + Employees
$5.96 Billion annual sales
32% Average savings
Ranked 18th in Grocery Retail*
Your Commissary … It’s Worth the Trip!
*Progressive Grocer’s Super 50 for 2011
15
15
We Go Where the Troops Are!
60%
50%
134
134 small stores (54%)
in remote or overseas
locations deliver only
20% of sales
40%
16 (6%) of the
largest stores
generate 20%
of total sales
30%
20%
46
30
10%
22
16
0%
% of Sales
% of Stores
Data based on FY 2012 Sales thru June 2012 for 248 Open Commissaries
16
Commissary Operational Efficiencies
FY 1992-2016
Baseline had no efficiencies been
achieved
2,500
2,250
Actual Costs w/Reductions
Efficiencies
FY1992 – FY2016:
$702M
2,000
1,750
1,500
1,250
Inflation
FY1992 – FY2010:
$759M
1,000
750
500
Cost (FY 1992 Constant $)
250
0
Baseline w/o Reductions
FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16
1,063 1,221 1,287 1,306 1,373 1,517 1,659 1,793 1,911 2,010 2,105 2,151 2,205
Actual Costs w/Reductions 1,028 1,088 982
971 1,019 1,053 1,123 1,203 1,263 1,318 1,403 1,449 1,503
Cost (FY 1992 Constant $)
774
730
695
696
676
611
607
646
630
623
336
354
464
536
591
648
692
702
702
702
Efficiencies
1,028 1,029 844
35
133
305
*Savings from BRAC & OCONUS CFE are not included in above
17
Military Related Employment
As of 03-31-2012*
 Military Spouses – 4095 or 26.94%
 Dependents – 1818 or 11.96%
 Sponsors:
- Retirees – 1695 or 11.15%
- Guard and Reserve – 287 or 1.89%
64.09%
 Other Veterans – 1847 or 12.15%
*Population – DeCA U.S. Civilian Employees - 15198
June 25, 2012
18
DeCA’s Environmental Policy
 DeCA is committed to:
– Pollution Prevention
– Compliance with Legal and Other Requirements
– Continual Improvement
– Environmental Leadership
 Awards
– 2010 Federal Electronics Challenge Bronze Level Award
– 2010 Federal Energy and Water Management Award
19
Fiscal Accountability & Internal Controls
 FY 2011 Clean Audit Opinion for the tenth straight year
 Internal Controls over Financial Reporting
– DeCA declared “Gold Standard” throughout DOD for FY 2011
Statement of Assurance for Internal Controls
 For every dollar of taxpayer funds invested in the
commissary benefit, authorized shoppers received
$2.08 in savings
Great Stewards of Taxpayer Dollars!
20
Customer Service
 American Customer Satisfaction Index (ACSI)
– ACSI Supermarket Industry Average: 76
– DeCA’s ACSI: 81
Commissary Customer Service Survey (CCSS)
– Patron Satisfaction
– 4.72 (out of 5.0)
Customer Service at All Time High!
21
Commissary Customer Service Survey
DeCA
2011
2010
2009
West
4.73
4.73
4.70
East
4.68
4.62
4.63
Europe
4.83
4.79
4.78
Overall
4.72
4.68
4.67
22
Commissary Customer Service Survey
Survey Questions
FY 2011
FY 2010
FY 2009
Q1
Low Prices/Overall Savings
4.72
4.72
4.70
Q2
Well Stocked, Full Shelves
4.66
4.64
4.59
Q3
Convenient Hours
4.77
4.75
4.73
Q4
Entrance/Sales Area/Restroom Cleanliness
4.74
4.73
4.70
Q5
Produce Quality/Selection
4.66
4.65
4.62
Q6
Meat Quality/Selection
4.78
4.76
4.73
Q7
Deli Quality/Selection
4.70
4.68
4.65
Q8
Bakery Quality/Selection
4.67
4.64
4.61
Q9
Other Food Items (dry, frozen & dairy selection)
4.76
4.75
4.72
Q10
Store Layout and Time Required to Shop
4.72
4.75
4.72
Q11
Checkout Waiting Time
4.70
4.71
4.68
Q12
Attractive Displays/Store Décor
4.72
4.73
4.70
Q13
Courteous, Friendly and Helpful Employees
4.85
4.85
4.83
Q14
Overall Satisfaction (How did we do?)
4.83
4.82
4.80
23
Agency Initiatives
Feds Feed Families
Scholarships for Military Children
Commissary Levels of Standardized Service
Throw Down Merchandising
Comparison Boards
- Meat and produce focus
24
Feds Feed Families
 Background
- DeCA is participating with DoD in the OPM sponsored 2012 Feds
Feed Families Campaign from 1 Jun to 31 Aug
- Children and families across the US are in great need of donated
food due to food bank stocks being depleted by the economic
downturn and natural disasters
 DeCA Participation
- 180 Commissaries in 46 states and one territory (Puerto Rico) are
collecting donations on their installations
- DeCA Total : As of 31 Jul 12 - 137,000
- DoD Goal: 1.5M lbs
- Total DoD Donations: As of 31 Jul 12 – 576,000
25
Scholarships for Military Children
 Program is funded by donations made by DeCA business
partners
 Fisher House Foundation, Inc. administers the program
 Program is in its 12th year
– Total Recipients: 6,742
– Total Scholarship Grants Awarded: $10,321,000
Total Scholarship
Grants Awarded
Academic Year
# of Recipients
2009-10
625
$937,500
2010-11
645
$967,500
2011-12
670
$1,005,000
2012-13
670
$1,005,000
26
“CLASS”
Commissary Levels of Authorized Standard Services (CLASS)
 A decision process that enables uniform delivery of services
provided by all stores within available funds
- Ensures authorized patrons receive equitable, predictable,
and consistent levels of service at all Commissaries
worldwide
 Focuses resources that drive the quality, consistency and
predictability of programs and services
- ‘Right Level of Service at the Right Cost”
- Equitable funding to all commissaries
27
“CLASS”
Commissary Levels of Authorized Standard Services (CLASS)
 Customers will know what level of service to expect at
every commissary they visit
 Employees will know what level of service they are
expected to provide
 Management will know funding is adequate to provide
those services
 Leadership will know what level of service all stores
are providing
28
CLASS Update
 CLASS will be deployed to all 248 Commissaries
 Joint effort SO, HR, IT and RM
 Deployment
- Began April 23, 2012 in Zone 28
- 60 store operations and store personnel trained to deploy
 Completed deployments
- As of Aug 17 – 87 stores
- Currently 6 teams on-site in 6 zones
 Projected Completion Date
- June 2013
29
29
Throw Down Merchandising
 Replaces all former Merchandising contests
- No more scrapbooks
 Placement based solely on percentage of growth/lift
versus last year on targeted commodities
 2012/2013 contest targets Perimeter or Perishable
growth/lift
 Zone Managers are contestants
- One winning zone manager for each category:
Produce, Meat and Grocery Chill/Frozen
- One overall winner for greatest growth in all
categories
30
Comparison Boards
31
FY 2011 Agency Sales
$
Billion!
32
DeCA Sales Comparison
FY 2011 vs. FY 2010
Area
Sales
% Change
Central
$1.25B
2.22%
East
$1.55B
2.41%
Europe
$0.52B
2.35%
Pacific
$0.94B
2.73%
West
$1.70B
0.75%
DeCA Overall
$5.96B
1.94%
33
DeCA Sales Comparison
FYTD 2012 (thru June 2012)
Area
Sales
% Change
$964.07M
2.97%
$1,188.80M
2.93%
Europe
$404.69M
4.23%
Pacific
$725.81M
3.61%
West
$1,305.69M
2.89%
DeCA Overall
$4,589.05M
3.15%
Central
East
34
Customer Transactions
FY 2011 vs. FY 2010
Area
Transactions
% Change
Central
18.97M
0.94%
East
21.99M
1.48%
Europe
11.75M
3.69%
Pacific
15.99M
1.86%
West
27.45M
0.57%
DeCA Overall
96.16M
1.44%
35
Customer Transactions
FYTD 2012 (thru June 2012)
Area
Transactions
% Change
Central
14.37M
1.22%
East
16.79M
2.47%
Europe
9.10M
3.47%
Pacific
12.14M
1.75%
West
20.99M
2.49%
DeCA Overall
73.39M
2.23%
36
DeCA Percent of Sales by Areas
FYTD 2012 (thru June 2012)
Central
21%
East
26%
West
28%
Europe
9%
Pacific
16%
37
Facility Inventory
 248 Commissary Facilities
– 14.9 million gross square feet
–
6.7 million square feet of sales area
–
Average age is 25.6 years
 12 Central Distribution Center Facilities
– Korea, Guam, Japan, Germany
– 1.7 million gross square feet
38
Pacific Area Profile
39
DeCA Pacific Sales Comparison
FYTD 2012 (thru June 2012)
Zone
Sales
% Change
NORTHWEST / ALASKA
$243.26M
0.09%
HAWAII
$192.45M
5.24%
JAPAN
$159.68M
5.96%
KOREA
$130.42M
5.29%
PACIFIC AREA Overall
$725.81M
3.61%
40
Pacific Area Customer Transactions
FYTD 2012 (thru June 2012)
Zone
Transactions
% Change
NORTHWEST / ALASKA
3,731,352
- 1.58%
HAWAII
2,983,473
2.63%
JAPAN
3,236,810
4.27%
KOREA
2,188,151
2.81%
PACIFIC AREA Overall
12,139,786
1.75%
41
Guard and Reserve FY 12
Pacific Area
 On-site sales events
 Patrons served
 Sales
6
4,428
$866,808
Location/Island
Event Dates
Hawaii
October 7-9, 2011
American Samoa
November 1-3, 2011
Kauai
November 10-12, 2011
Hawaii
March 9-11, 2012
Kauai
May 31 - June 3, 2012
Maui
June 15-17, 2012
42
Containers Departing Oakland, California
43
DeCA Overall
CY 2011 Total Containers Shipped
20,203
44
Total Containers Shipped to
Pacific Theater - CY 2011
9,833
45
Containers by Port
CY 2011 Total Shipped to Pacific Theater
Port
Northwest
Total Containers
953
Oakland
7,807
Southwest
1,073
Total
9,833
46
Pacific Area Projects
Approved Construction Projects
Store
Anchorage Area
Type
Projected Completion Date
Architectural/Refrigeration Upgrade
Spring 2013
Approved Design Projects
Store
Type
% Design
Camp Humphreys CDC
New CDC (ROK funded)
Charrette complete
Camp Humphreys
New Store (ROK funded)
10%
Iwakuni
New Store (GOJ funded)
10%
Iwakuni CDC
Architectural/Structural Repairs
Sagamihara
Architectural/Refrigeration Upgrade
100%
Schofield Barracks
Architectural/Refrigeration Upgrade
100%
Guam CDC
Architectural/Refrigeration Upgrade
95%
Advertised
New/Expanded Stores Opening in CY 2012/2013
Store
Type
K-16
New Store
Chinhae
New Store
Projected Opening
Opened May 2012
Fall 2013
47
Best Commissary Award Winners
 Fort Bliss, Texas
 Director's Award Best Superstore
 Malmstrom AFB, Montana
 Bill Nichols Award Best Large Commissary
 Osan AB, South Korea
 Dan Daniel Award Best Large Commissary Overseas
– 2nd Consectutive Year!
 Camp Casey, South Korea
 L. Mendel Rivers Award Best Small Commissary Overseas
– 2nd Consecutive Year
 Camp Merrill, Georgia
 Richard M. Paget Award Best Small Commissary
.
48
Camp Merrill, Georgia
Richard M. Paget Award Best Small Store
49
Camp Casey, South Korea
L. Mendal Rivers Award Best Small Store Overseas
50
Osan AB, South Korea
Dan Daniel Award Best Large Store Overseas
51
Malmstrom AFB, Montana
Bill Nichols Award Best Large Store
52
Fort Bliss, Texas
Director’s Award Best Superstore
53
54
DeCA Store Operations
Senior Leadership
Keith C. Hagenbuch
Executive Director
 E-mail address: [email protected]
 Commercial phone: (804) 734-8000 ext 48513
 DSN 687-8513
James J. Hudson Jr.
Principal Deputy Director
 E-mail address: [email protected]
 Commercial phone: (804) 734-8000 ext 48513
 DSN 687-8513
55
DeCA Store Operations
Senior Leadership – Pacific Area
David C. Carey, Jr.
Pacific Area Director
 E-mail address: [email protected]
 Commercial phone: (916) 569-4978
 DSN 839-4978
Martin J. Jackson
Pacific Area Deputy Director
 E-mail address: [email protected]
 Commercial phone: (916) 569-4697
 DSN 839-4697
56
Pacific Area Zone Managers
Victoria M. Best-Rush
Alaska and Washington Zone Manager
 E-mail address: [email protected]
 Commercial phone: (253) 982-6697
 DSN 382-6697
Charles B. McMinn, Jr.
Hawaii Zone Manager
 E-mail address: [email protected]
 Commercial phone: (808) 448-4669
 DSN 448-4669
57
Pacific Area Zone Managers
Bruce E. Graf
Japan (Okinawa) Zone Manager
 E-mail address: [email protected]
 Commercial phone: 011-81-98-961-1786
 DSN 634-1786
Wayne S. Walk
Korea & Guam Zone Manager
 E-mail address: [email protected]
 Commercial phone: 011-82-2-7916-7136
 DSN 736-7136
58
Questions

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