Professional Documents
Culture Documents
A Brief Overview
Our History
1920 Incorporated as the Quartermasters Association (QMA) QMA was composed of officers of the Regular Army, the National Guard, the Organized Reserves, key civilians in the federal government and leaders of industry. QMA disseminated professional information concerning all Quartermaster and related activities, and fostered and promoted a spirit of cooperation and friendly exchange of ideas among the members. 1961 QMA becomes the Defense Supply Association (DSA) The name was changed in response to the establishment of the Defense Supply Agency, as well as the increasing responsibilities being placed upon the U.S. Army Quartermaster Corps to provide food, clothing and general supplies to all the Armed Forces under DoDs single manager concept. The Association was composed of officers of the Armed Forces, key civilians in the federal government and leaders of industry. 1972 DSA becomes the American Logistics Association (ALA) To eliminate confusion with the Defense Supply Agency, the Association changed its name to the American Logistics Association and adopted the eagle in the oval logo. The new ALA carried forward the same objectives of the Quartermaster and Defense Supply Associations. According to an editorial in the July/August 1972 issue of ALAs Review Magazine, the new name was chosen to show clearly who we are, what we do and how we intend to function. American must always exalt the pride of patriotismwe believe in our country, in its customs, in its ideas and in its business efforts. Logistics is defined as that branch of the military art which embraces the details of transport and supply. Association is a union; a connection of persons or things, or a union of persons in a company or society for some particular purpose.
Our History
1974 ALA reorganizes into a national trade association Led by a Board of Directors comprised of representatives from industry, the newly organized association was designed to serve industry and its related interests in military and other government activities.
2005 The ALA Board of Directors revised the mission of ALA to include a focus on Total Quality of Life and MWR/Services. The American Logistics Association
promotes, protects, and enhances the military resale and quality of life benefits on behalf of our members and the military community.
It is our goal to provide valuable programs and services that enable all members to operate effectively and efficiently with the military resale system and services. ALA is the only organization that can give you the resources and the information you need to succeed. We strive to increase the visibility of the Association and enhance the services that ALA provides its members.
Contact Information
American Logistics Association 1133 Fifteenth Street, N.W. Suite 640 Washington, DC 20005 (202) 466-2520, Fax (202) 296-4419 www.ala-national.org
Military Market
A Closer Look
49 States 2 U.S. Territories 30 Foreign Countries
18.3 17.8 17.3 16.8 16.3 15.8 15.3 14.8 14.3 13.8 13.3
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 15.3 14.7 14.7 14.8 15 14.6 15 15 16.3 15.8 16.3 16.6 17.8
Military Patrons
Active Duty Demographics
Authorized Shoppers
Total Shoppers 11.6Million
DoD Civilian Employees 0.67M Active Duty 1.3860M
Retirees 2.1M
Guards/Reserves 2.0M
2.10M 2.00M
2
1.60M 1.50M 1.44M 1.43M 1.40M 1.39M 1.42M 1.40M 1.39M1.43M 1.38M 1.37M 1.37M
0.5
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: DMDC
Age
23% 29% 17% 13% 17%
.01%
Officers
16.3%
Enlisted
83.6%
Source: DMDC
Defense Commissary Agency (DeCA) Army and Air Force Exchange Service (AAFES) Navy Exchange Service Command (NEXCOM) Marine Corps Exchange (MCX) Coast Guard Exchange Systems (CGES) Veterans Canteen Service (VCS)
DeCA Profile
Established: 1991 Employees: 16,358 Headquarters: 1300 E Avenue Fort Lee, VA 23801-1800 Phone: (804) 734-8253 Web site: www.commissaries.com Major Distribution Facilities: - CONUS Civilian Distributor Network - Overseas DeCA Central Distribution Centers
Director: Vacant
Chief Executive Officer: Richard S. Page, SES Selected Operations and Services: Grocery; Freeze; Chill; Produce Meat; Dairy Deli/Bakery
Mission Statement
Community - To enhance
recruiting, retention and readiness by efficiently and effectively providing exceptional savings and
DeCA Facts
Annual operating Budget- Congressionally Funded Headquarters- Fort Lee, Virginia FY 2007 Sales- $5.65 Billion 258 stores (171 in CONUS and 87 OCONUS) Merchandise sold at cost plus 1% to cover shrinkage, plus 5% surcharge applied at register Vendor Stocking-required for some categories Estimated that 45% of DeCA shoppers are retirees Commissaries recognized as the #1 non-pay benefit
$5.1
$4.9
$4.9
$5
$5
$4.97 $5.04
$5.65
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
6. Ahold USA
7. Publix 8. Supervalu 9. Delhaise America 10. Meijer 11. H.E. Butt 12. Winn-Dixie 13. BJ Wholesale 14. Defense Commissary Agency
$22.6
$20.1 $19.9 $16.5 $6.7 $14.4 $8.5 $5.8 $5.4
13
$297,496 $27,344 $30.86
14.7
$506,968 $34,452 $60.76
Square Foot
$7.12
45,000 118 hours 15.3
$16.15
16,829 59 22.1
Avg. Number of Items Stocked Avg. Hours Open per Week Inventory Turns
$27.34
$58.57
DeCA Sales
Store Rank Sales #1 Fort Belvoir, VA #5 San Diego NB 2007 Sales $95,680,209 $70,273,055 2007 Transactions 1,096,567 1,057,251
$63,292,723
$50,485,933 $37,882,636
985,652
677,811 733,812
#100 Ft Wainwright, AK
$21,993,270
386,591
No Slotting fees or co-op advertising 100% of all deal money is passed to the patron
An ideal test market scenario since the effect of trade funds can truly be monitored
The average Commissary is 2.5 times as far from home as the local grocery store However, by a 2 to 1 margin, patrons are willing to put up with inconveniences to save 30% on their grocery bill
126.4 Million coupons redeemed in FY 2007. Total coupon value was $98.8 Million. DeCA earns approximately $10.1 Million in handling fees per year. Redemption percentages are generally higher in the military market. Average coupon face value is 78 cents.
Manager Specials: Category leaders, high volume items, deep discounts, normally 7 days, mandated display, administered via automated VCM at Headquarters Power Buy Display: High volume items, excellent prices, mandated quantities and display Primary Display: Required displays (K1 & K2 display these to the maximum extent possible) Secondary Display: Optional displays (store discretion) One Time Buys/Shippers: Highly consumable, impulse items
Continued
Case Lot Sales: Special events to sell patrons in case increments Dollar Days: Dollar price points and dollar multiples on brand name food items Coupons: On-shelf manufacturer coupons, FSI coupons & Internet coupons all accepted Demos: Very effective and cost efficient Advertising: Several effective Military specific vehicles available In-store DeCA Radio: In most major DeCA stores In-store Floor Advertising: Available for most DeCA stores
$9.8 $10 $11.1 11.04 $10 $10.5 $9.8 $9.3 $9.7 $9.7 $9.7 $10.1$10.1
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Exchanges
AAFES, NEXCOM and Marine Corps Exchanges Operate as Federal Instrumentalities - unique organizations within the DoD Self-funded, using few tax dollars Exchanges pay their own operating costs from Revenues Return earnings to Customers through payments to Morale, Welfare and Recreation Activities and investments in new, renovated exchange facilities Coast Guard Exchanges An MWR activity; Coast Guard is part of the Department of Homeland Security
Veterans Canteens Operates under the authority of the Department of Veterans Affairs
AAFES Profile
Established: 1895 Employees: 43,000 Headquarters: 3911 S. Walton Walker Blvd. Dallas, TX 75236-1598 Phone: (214) 312-2001 Web site: www.aafes.com Major Distribution Facilities: Forest Park, GA; Newport News, VA; French Camp, CA; Waco, TX; Giessen, Germany; Tokyo, Japan; Yakota, Japan; Inchon, Korea; Okinawa, Japan; Honolulu, Hawaii Commander: Brigadier General Keith L. Thurgood, USAF
COO: Mike Howard Selected Operations and Services: Retail Stores; On-line Shopping Concessions; Catalog Services Food Facilities; Gas and Auto Repair Military Clothing Stores; Movie Theaters Vending Centers, State Department Commissaries
Italy
Greenland
Puerto Rico
NEXCOM Profile
Established: 1946 Employees: 15,000 Headquarters: 3280 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: (757) 463-6200 Web site: www.navy-nex.com Major Distribution Facilities: Norfolk, VA; Chino, CA Pensacola, FL; Naples, Italy Honolulu, Hawaii; Yokosuka, Japan Commander: Rear Admiral Robert J. Biachi, SC, USN COO: Michael Good, SES Selected Operations and Services: Retail Stores; Concessions Food Facilities; Gas and Auto Repair Authorized Uniform Stores Vending Centers; Ship Stores
Hawaii
Hawaii District
Japan District
Guam District
Mid-South District
Southeast District
Puerto Rico
MCX Profile
Established: 1897 Employees: 3543 Headquarters: 3044 Catlin Ave. Quantico, VA 23134-5103 Phone: (703) 784-3800 Web site: www.usmc-mccs.org Major Distribution Facilities: None Deputy Director Business Operations: Michael T. Tharrington Selected Operations and Services: Retail Stores; Concessions Vending Centers; Gas and Auto Repair Food and Hospitality Facilities MWR Programs Marine Corps Exchanges (MCX) are a part of the Marine Corps Community Services (MCCS) on the Marine Corps bases. FY 2007 *Estimated Sales: $793.3 Million *Cooperative format Director: MG. Gen Timothy R. Larson, USMC (Ret)
Henderson Hall Quantico (MCX HQ) Camp Allen Barstow Twentynine Palms Camp Pendleton Miramar & MCRD San Diego Yuma Cherry Point Camp Lejeune Beaufort Parris Island Albany
Hawaii
Japan
Iwakuni Kaneohe Bay
CGES Profile
Established: 1945 Employees: 1,600 Headquarters: 870 Greenbrier Circle Greenbrier Tower II Suite 502 Chesapeake, VA 23320-2681 Phone: (757) 420-2480 Web site: www.uscg.mil/mwr Major Distribution Facilities: None Commander: Captain Edward Eng Director of Operations: Bob McGinty Selected Operations and Services: Retail Stores Gas Stations MWR Programs Food Operations (franchised) Vending Centers
Petaluma Alameda
San Pedro
Charleston
Hawaii
Puerto Rico
Borinque San Juan
VCS Profile
Established: 1946 Employees: 3,100 Director: MS. Marilyn Iverson, SES COO: Ralph Shalda, SES
Headquarters: #1 Jefferson Barracks Road Building #25 St. Louis, MO 63125-4194 Phone: (314) 894-1200 Web site: www.vcscanteen.com Major Distribution Facilities: None
Selected Operations and Services: Retail Stores, Food Operations (Cafeterias) Personalized Services, Vending
VCS Profile
Patients (including relatives and friends) Staff and Medical workers Volunteers
Average Retail Store size: 1,500-1,800 sq. ft. Approved items are placed in VCS Automated Merchandise Catalog (AMC). Items on AMC are available to each canteen for ordering merchandise.
AAFES
NEXCOM MCX
109
45 17
51
32 2
160
77 17
VCS
CGES Total
170
66 405
0
10 95
170
76 500
NOTE: Resale systems combined operate thousands of retail operations including Main Stores, Shoppettes, Troop Stores, Package Stores, Sport Shops, Lawn and Garden, Fast Food, Military Clothing Stores, Gas Stations, etc.
Kohls
U.S. Military Exchanges Dillards Nordstrom
Source: NRF online
$13.4
$11.6 $7.7 $7.1
Pricing equal to or lower than best customer Voluntary Price Reduction (VPR) Favorable payment terms
Marketing funds for: In-store demos Premiums, give-a-ways Truckload and parking lot sales Contests, sweepstakes Clerk training Scholarships
continued . . .
Advertising funds for: Weekly tabloids, In-store flyers Special programs Prepaid freight Warehouse allowances Business Processes Vendor Managed Inventory (VMI) Same UPC code # for Bonus Packs Pre-ticketing for certain kinds of merchandise
Commander:
Rear Admiral Robert J. Bianchi, SC, USN
Vic President, Ship Stores Program: Charlie Vaughn Selected Operations and Services: Retail Stores; Vending Machines Laundries; Barber Shops
Investment in inventory is constrained limited storage and display space Assortments reduced to best selling SKUs Majority of sales occur while deployed Captive market when at sea Store hours restricted while in port or repair yards Requires 24-72 hour turnaround for deliveries
MWR/ Services
MWR, GSA, Department of State
MWR Operations
Morale, Welfare and Recreation
MWR
MWR is a term given to a complete range of community support, quality of life programs, services, and activities that are provided to members of the Armed Forces and their families on military installations throughout the world.
Operations
Each of the military services operates MWR activities Each military service has its own MWR organization, and while they manage similar activities, each does so in its own manner within the broad policy mandates of DoD Operations are generally decentralized, but there is growing trend toward regional operations in Army & Navy.
Program Funding
MWR operations are funded with a combination of tax payer funds (appropriated) and self generated funds (non-appropriated) referred to as APF and NAF respectively NAF is generated through the sale of goods and services by both MWR operations and the Exchanges (dividends)
Programs Categories
Categories A Title Mission Essential Funds 100% APF Program Examples Fitness Center, Intramural Sports, Libraries, Rec. Centers Child Dev. Center 35% NAF Outdoor Rec., Rec. Pool C Business Operations 100% NAF* Clubs, Golf,Bowling, Retail Stores, Snack Bars Restaurants, Lodging, Marinas
65% APF
Category may determine type of contracting procedures utilized APF: Defense Federal Acquisition Regulations Supplemental NAF: DoD and Service Specific Regulations ** DoD Directive 4105.67 DoD Instruction 4105.71
Source: DMDC
Army
Fitness Facilities Gyms/fields Bowling Libraries ITT
Navy
Fitness Facilities ITT Fast Food Venues Outdoor Rec. Gyms
Marines
Fitness Facilities ITT Fast Food Venues Outdoor Rec. Gyms
Army Installation Management Agency (IMA) Chief, MWR & Family Support Branch: Arnie Cole Phone: (703) 602-1812
Director: Arthur Myers, SES Deputy Dir: Linda Egentowich, YC-03 Phone: (703) 604-0010/0321 (fax) Web site: www.afsv.af.mil Contains data on: Aero Clubs, Child and Youth, Fitness and Sports, Tops in Blue, Lodging, ITT, Mortuary Affairs, Survivor Assistance, Career Program, Faculty Design Guides, Libraries, Golf, Clubs, AFNAFPO, Public Affairs and News
Facilities: Lodge 30 (excludes RV) Golf Courses 2 Food & Bev Ops 26 Fitness Ops 31 (excludes stand-alone equipment)
GSA
Regional Small Business Centers
GSAs 12 Regional Small Business Centers (SBCs) can help your small business locate contracting opportunities. They are in place to help small businesses locate GSA buyers for their products and services and understand GSA contracting and schedule procedures. Sales total approximately $25 billion annually.
Region 3 Mid-Atlantic Strawbridge Bldg., 20 North 8th Street (215) 446-4928 Philadelphia, PA 19107 Delaware, Maryland (except Prince Georges and Montgomery Counties), Pennsylvania, Virginia (except Arlington, Fairfax, Loudoun and Prince William Counties, and the City of Alexandria), West Virginia Region 4 Southeast Sunbelt 77 Forsyth St. Atlanta, GA 30303 (404) 331-5103 Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee
Region 7 Greater Southwest 1500 East Bannister Road 819 Taylor Street Fort Worth, TX 76102 (817) 978-0800 Arkansas, Louisiana, New Mexico, Oklahoma, Texas
Region 8 Rocky Mountain Building 41, Room 145 Denver Federal Center P.O. Box 25006 Denver, CO 80225 (303) 236-7408 Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming
Region 10 North West/Artic Room 2413 400 Fifteenth Street, SW Auburn, WA 98001 (253) 931-7956 Alaska, Idaho, Oregon, Washington
Northern Capital Region (NCR) Room 1050 301 7th St., SW Washington, DC 20405 (202) 708-5804 District of Columbia, Maryland (Prince Gorges and Montgomery Counties), Virginia (Arlington, Fairfax, Loudoun and Prince William Counties and the City of Alexandria)
Continued
The Military Market Facts Presentation has been brought to you by the American Logistics Association.