Transcript The Military Trade Channel - American Logistics Association

American Logistics Association
Military Market Facts
July 2011
American
Logistics
Association
A Brief Overview
Our History

1920 Incorporated as the Quartermaster’s 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 DoD’s 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 ALA’s 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 patriotism…we 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.
Programs and Services

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
Exchange
Market
A Closer Look
50 States
2 U.S. Territories
30 Foreign Countries
Military Patrons
Active Duty Demographics
Authorized Shoppers
Total Shoppers
Authorized 2010
12.3 Million
Source: AAFES Contingency Planning Offivce
Active Duty Military
Personnel Trend
2.5
2.10M
2.00M
2
1.80M
1.70M1.65M
1.60M
1.50M
1.42M1.40M1.37M1.37M1.44M 1.39M1.43M1.43M1.40M
1.39M1.38M
1.5
1.41
1
0.5
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: DMDC Dec 2008
Active Duty Demographics
Male
1,186,435
85.4%
Female
202,949
Officers
16.3%
Source: DMDC Updated Tri-anually
2011 Due
14.6%
Enlisted
83.6%
Age
<22
23%
22-26
29%
27-31
17%
32-36
13%
37-49
17%
50+
.01%
Military Resale Agencies
•
•
•
•
•
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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)
Exchange Sales Trends
In Billions
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
FY 2010 Sales: $8.476 Billion
Commander:
Major General Bruce A. Casella, USA
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
AAFES Regions (5)
European Region
Main
Exchanges
Pacific Region
Main
Exchanges
England
Italy
Alaska
Germany
Greenland
Eastern
Region
Main
Exchanges
Guam, Japan,
S. Korea, Okinawa
Hawaii
Western Region
Main Exchanges
Central Region
Main
Exchanges
Puerto
Rico
NEXCOM Profile
Established: 1946
Commander:
Employees: 15,000
Rear Admiral Glenn C. Robillard, SC, USN
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
FY 2010 Sales: $2.55 Billion
COO:
Michael Good, SES
Selected Operations and Services:
Retail Stores; Concessions
Food Facilities; Gas and Auto Repair
Authorized Uniform Stores
Vending Centers; Ship Stores
NEXCOM Districts (11)
European
District
Northwest
District
Northeast
District
Capitol
District
Western
District
Tidewater
District (HQ)
Japan
Guam
Hawaii
Hawaii
District
Cuba
Japan
District
Guam
District
Mid-South
District
Southeast
District
Puerto
Rico
MCX Profile
Established: 1897
Director:
MG. Gen Timothy R. Larson, USMC (Ret)
Employees: 3543
Headquarters:
3044 Catlin Ave.
Quantico, VA 23134-5103
Phone: (703) 784-3800
Web site: www.usmc-mccs.org
Major Distribution Facilities:
None
FY 2010 Sales: $925.3 Million
Deputy Director Business Operations:
Ms. Cindy Whitman Lacy
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.
MCX Facilities (17)
Henderson Hall
Quantico (MCX HQ)
Camp Allen
Barstow
Twentynine Palms
Camp Pendleton
Miramar
& MCRD San Diego Yuma
Beaufort
Parris Island
Albany
Hawaii
Japan
Iwakuni
Kaneohe
Bay
Cherry Point
Camp Lejeune
CGES Profile
Established: 1945
Commander:
Employees: 1,600
Captain Edward Eng
Headquarters:
Battlefield Technology Center 1
510 Independence Pkw. Ste 500
Chesapeake, VA 23320
Phone: (757) 8424901
Web site: www.uscg.mil/mwr
2009 MWR Revenue NAF $17.8 M
2009 APF $8.3M
Lodges 26
Food & Beverage 24
Golf Courses 2
Fitness Facilities 33
FY 2010 Sales: $147.8 Million
Director of Operations:
John Reiley
Selected Operations and Services:
Retail Stores
Gas Stations
MWR Programs
Food Operations (franchised)
Vending Centers
Kodiak
CGES High-Volume
Exchanges
Port
KetchikanAngeles
North
Coast,
Cleveland
Astoria
Seattle
South
Portland
North Bend
New London
Cod
Staten Cape
Island
Humbolt Bay
Petaluma
Baltimore
Yorktown
Cape May
Portsmouth
Alameda
Elizabeth City
Charleston
San Pedro
Mobile (2)
Honolulu
Hawaii
Galveston
New Orleans
St. Petersburg
Mayport
Clearwater
Miami
Puerto Rico
Borinque
San Juan
VCS Profile
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Central Buying Office
Core Customers:

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
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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.
VCS Profile
Established: 1946
Employees: 3,100
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
FY 2010 Sales: $219.7 Million
Director:
MS. Marilyn Iverson, SES
COO:
Ray Tober, SES
Selected Operations and Services:
Retail Stores, Food Operations (Cafeterias)
Personalized Services, Vending
Exchanges - Main Stores
CONUS
AAFES
OCONUS
TOTAL
116
59
175
NEXCOM
73
31
104
MCX
15
2
17
VCS
171
1
172
CGES
57
5
62
Total
432
98
530
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.
Exchange Sales vs.
America’s Top Retailers
Sales (Billions)
WalMart
CVS
$98.7
Costco
$71.4
Home Depot
$66.1
Target
$65.3
Walgreen
$63.3
Lowe’s
$47.2
Best Buy
$45.0
Sears
$44.04
Kohls
$17.1
U.S. Military Exchanges
Source: NRF online
2009
$408.214.
$14.04
Exchange Resale Systems
Business Drivers



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 . . .
Exchange Resale Systems
Business Drivers

Advertising funds for:
 Weekly tabloids, In-store flyers
 Special programs

Prepaid freight
Warehouse allowances
Business Processes
 Vendor Managed Inventory (VMI)
 Pre-ticketing for certain kinds of
merchandise


Ship Stores Profile
Established: 1909
Headquarters:
3280 Virginia Beach Blvd.
Virginia Beach, VA 23452
Phone: (757) 463-6200
Web site: www.navy-nex.com
Major Distribution Facility:
Yokosuka, Japan
FY 2010 Sales: $79.2 Million Source
Commander:
Rear Admiral Glenn C. Robillard , SC, USN
Vic President, Ship Stores Program:
Charlie Vaughn
Selected Operations and Services:
Retail Stores; Vending Machines
Laundries; Barber Shops
What Makes Ship Stores
Unique?






Investment in inventory is
constrained
 limited storage and display
space
Assortments reduced to best
selling SKU’s
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
“B”
Community Support
35% NAF
65% APF
Youth Program,
Child Dev. Center
Outdoor Rec., Rec. Pool
“C”
Business Operations
100% NAF*
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
Clubs, Golf,Bowling,
Retail Stores, Snack Bars
Restaurants, Lodging,
Marinas
*With some limited exceptions
** www.defenselink.mil
MWR’s Most Frequented
Facilities
Air Force
Army
Fitness Facilities
Libraries
Outdoor Rec.
Clubs and
Entertainment
Fitness Facilities
Gyms/fields
Bowling
Libraries
ITT
Navy
Marines
Fitness Facilities
ITT
Fast Food Venues
Outdoor Rec.
Gyms
Fitness Facilities
ITT
Fast Food Venues
Outdoor Rec.
Gyms
Army MWR Operations
Headquarters:
U. S. Army Community and Family
Support Center (CFSC)
4700 King Street
Alexandria, VA 22302
Commander: BG Reuben D. Jones, USA
COO: Rich Gorman, SES
Phone: (703) 681-7472
Web site: www.armymwr.com
General Information:
2009 Revenues:
$1.6 B APF
$1.1B NAF
Employees:
29,904
Contains data on: Lodging, Sports,
Recreation, Construction, Contracting (How
to Do Business), Contracting Officer Listing,
Armed Forces Recreation Centers, Child and
Youth Programs and more
Facilities:
Child Care 73
Lodging Operations N/A
Golf 56
Fitness 207
Clubs, food, beverage, entertainment 227
Army Installation Management Agency (IMA)
Chief, MWR & Family Support Branch: Arnie Cole
Phone: (703) 602-1812
Key HQ Phone Numbers:
Family Programs: (703) 681-5375
Soldier Programs: (703) 681-7398
Recreation: (703) 681-7226
Business Programs: (703) 681-5203
NAF Contracting: (703) 681-5244
NAF Construction: (703) 681-1506
Marine Corps MWR
Operations
Headquarters:
U.S. Marine Corps Personal
and Family Readiness Division
3280 Russell Road
Quantico, VA 22134-5103
Director: MG (Ret) Timothy Larsen
General Information:
Contains Data On: Semper Fit (rec./fitness),Family
Programs, Business Ops Programs, Personal Services
(child/youth), Construction, Contracts, MCX Sites,
Buyers Lists, Sales Reports, How to Do Business
2009 Revenues: $510,588M NAF *
$463,069M APF*
Employees:
6,167 Cat A & B
5,844 Cat C
2008 Recapitalization: $20.1M
Facilities:
Fitness 53
Food Ops 228 (84 NBFF)
Lodging 14
Golf 11
*estimated
Dep. Dir. Business Ops: Ms Cindy Whitman Lacy
Phone: (703) 784-9501/9816 (fax)
Web site: www.usmc-mccs.org
Key Phone Numbers:
Dep. Dir. Business Operations: (703) 784-3800
Public Affairs: (703) 783-9517
Retail Branch: (703) 784-3800
Services Branch: (703) 784-3800
Food & Lodging: (703) 784-3800
Navy MWR Operations
Commander, Navy Installations Command (CNIC)
Director, Fleet & Family Readiness Programs: John Baker
Phone: (202) 433-4544
Director, Fleet Readiness Programs: Christian Mehrer
Phone: (202) 433-4538
Headquarters:
Commander Navy Installations Command (N9)
2713 Mitscher Rd SW
Washington DC 20373-5802
General Information:
2009 Resources:
$493.3M NAF (includes NEX Dividends)
$344.5M APF (Direct)
Employees:15,336 (NAF, APF, FN, and MILPERS)
2009 NAF Recapitalization: $69.3M
Facilities:
Fitness 105
Golf Courses 34
RV Parks 487
Food Ops 423
Contains Data On: Fitness, motion pictures, ITT, Business
Activities, Facilities and Acquisition, Community Support
(child/youth), Public Affairs, (How to Do Business)
HQ POCs:
F&FR Support Center: (Tom McFadden)
(901) 874-6618/6812 (fax)
Web site: www.mwr.navy.mil
Other HQ POCs:
F&FR Service Center: (Tom McFadden)
(901) 874-6618/6803 (fax)
Marketing/Communications: (901) 874-4243
Fitness/Fleet Rec: (901) 874-6802
Media Resources/Motion Pictures: (901) 874-6537
Recreation: (901) 874-6640
Food Service: (202) 433-4640
Lodging Program: (202) 433-4621
Child and Youth Programs: (901) 874-6699
Facilities & Acquisition: (901) 874-6674
Computer Services: (901) 874-6520
Finance: (901) 874-6592
Personnel: (901) 874-6716
Training: (901)874-6735
Air Force Services
Operations
Headquarters:
U.S. Air Force Services
Directorate of Services
1770 Air Force Pentagon
Washington, DC 20330-1770
General Information:
2009 Revenues: $756.7M NAF
$813M APF
Employees:
47,247
Director: Charles E. Milam, SES
Deputy Dir: Horace L. Larry
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
2009 Recapitalization: $100.7M
Facilities:
Fitness Centers 115
Fast Food Ops 108 (Clubs Only)
HQ POCs:
Programs Policy: (703) 604-0738
Armed Forces Entertainment: (703) 604-2429
Child & Youth: (703) 604-6421
Golf Courses 66
Lodges 93
continued . . .
Air Force MWR Operations
Operations:
Air Force Services Agency
10100 Reunion Place, Suite 500
San Antonio, TX 78216-4138
Commander: Col. Sandy Adams, USAF
Phone: (210) 652-6207/7041 (fax)
www-p.afsv.af.mil
Web site: www.afnafpo.com
Includes How to Do Business, Acquisition
Data, Smart Buy Program
A.F. Services Agency POC’s
Community Prgms: (210) 652-3371
Rec & Business: (210) 652-3193
Fit & Sports: (210) 652-7021
Mkting & PAO: (210) 652-4945
Lodging: (210) 652-8875
Food: (210) 652-2619
A.F. NAF Purchasing
AFNAFPO
HQ AFSVA/SVC
10100 Reunion Place, Suite 304
San Antonio, TX 78216-4138
Director: (210) 652-5426
Purchasing Div: (210) 652-5426
The Military Market Facts
Presentation has been brought
to you by the
American Logistics Association.
Advocates for Military Total Quality of Life
www.ala-national.org