Transcript Final

American Logistics Association
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DeCA/ALA Training Conference
Commissary Council Brief
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American Logistics Association
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DeCA / ALA Commissary Council Update
◊ The Commissary Council is YOUR ALA representation to DeCA, on all
matters within the Commissary system…get involved!
◊ Our Mantra – “Issued Oriented . . . Solution Driven!”
◊ The Council is comprised of 23 members from across all Industry forms:
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Manufacturers
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Distributors
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Brokers
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Media/Data Providers
 The working Committees include another 48 Industry Reps working
side-by-side with DeCA POCs to collaboratively move the benefit and the
business forward.
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2009 Commissary Council
Co-Chair:
Pete Murphy
Randy Chandler
David McMurtry
CAT
Bill Mehler
Sheila Linn
Ops/Systems
Gordon Jones
Ron Ritchie
Cat. Management
Michelle Frost
Randy Hardee
Perishables
Brad McMinn
Joe Kovac
Store Support
Jay Hudson
Steve Lamkin
Promotions
Charlie Dowlen
Paul Keating
Consumer Trends
Industry Trends
Innovations
Outreach
Data Accuracy
System Changes
System Updates
Virtual Com.
VCM Automation
Cat Reviews
Training
Standards –
Templates
Meat
Produce
Freeze/Chill
Dairy
Deli-Bakery
Vendor Stocking
Execution
Swell Allowance
Category Resets
Speed To Shelf
Club Packs
Displays
HBC
Shippers
Compliance
New Items
Co-Chair:
Ainsley Everhart
Co-Chair:
Jim Herring
Co-Chair:
Tommie Draper
DeCA/Commissary Council
2009 Objectives
Committee
Primary
Secondary
CAT Team
Bill Mehler
Sheila Linn
Marketing
Consumer Outreach
Coupon Books ‘09
Consumer Awareness Month
Insights
CAT Golf Tournament
Ops/Systems
Gordon Jones
Ron Ritchie
VCM Automation
Global Data Synchronization
Improve Replenishment Process
Automate Key Business Processes
Store Access Credentialing
Category Management/Plano-o-grams
Michelle Frost
Randy Hardee
Ft. Bragg Test
CAT Review – Standardized Template
Club Pack Evolution
Perishables
Brad McMinn
Joe Kovac
Elevate Perishable Promotions
Club Pack and Case Lot Promotions
Industry Promotions & Cross-Merchandising
Merchandising Investments
Store Support
Steve Lamkin
Jay Hudson
Vendors Stocking
Execution
Resets
Swell Allowance
Promotions
Charlie Dowlen
Paul Keating
Mom’s Day Campaign
Expanded HBC Promotions
Club Packs
Extended Pricing Periods (45-day)
Multiples
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Consumer Awareness Team (CAT)
Commissary Consumer Awareness – Sheila Linn, Campbell Soup Company
• Commissary Awareness Month – May – Commissary Commando Competition – DeCA challenging
all single enlisted soldier, sailor, airman, Marine and Coast Guard customer to discover their
commissary benefit. CAT sponsoring giveaways.
• Insights – Commissaries have shown an increase market basket size, core and occasional
spending, grew frequency and improved loyalty.
• Outreach Events – Coordinated industry support of AUSA luncheon – Sponsored supplies for
Microwave 101 barracks cooking show - Sponsored the purchasing of outreach giveaways for use
at DeCA outreach events - sponsors top enlisted awards program – coordinated the collection of
donated certifichecks provided to NGB Chief for the Thanksgiving Holiday
•Marketing – Since DeCA can not advertise – CAT sponsors ad space in military publications, for
DeCA, to reach potential shoppers not currently using the commissary benefit.
•Coupon Booklet –– produced 200,000 high volume Commissary coupon books for DeCA’s
outreach events. Distributed spring and fall.
• For additional information on supporting CAT initiatives – see Sheila Linn – CAT Chair or Ainsley
Everhart – Co-Chair
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2009 Marketing - CAT
Mar – Guard & Reserve
Mar – Guard & Reserve
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Operating Systems
Key Objectives for 2009
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Review current process for VCM’s & identify potential system
enhancements to reduce costs and realign associated workload.
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Implement Global Data Synchronization (GDS) initiative (Quality of
data from industry continues to be major concern).
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Improve business process for:
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Exchanging information (ALA WEB site now being updated)
Tracking random weight data ( Awaiting Test )
Computer assisted ordering (Next update June 2009)
Updating data for Plan-o-grams (Requires GDS)
DeCA’s Accounting System (Waiting for DoD guidance)
DeCA’s Enterprise Business System (Bus. Trans. review process)
DeCA contractor credential for store access (Defer to ALA BOD)
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Category Management / Plan-o-grams
Committee Chairpersons: Michelle Frost - DeCA HQ / Randy Hardee – DMI
• Fort
Bragg North Merchandising Test Concept – Start Date: March 2009
Goal: This committee will offer assistance in evaluating this test concept.
Minimum 13 weeks to expire before any preliminary sales evaluations begin.
• Category
Review Template Development
Goal: Standardize the information and format presented during Category Reviews to offer
efficiencies and effectiveness for both DeCA and industry.
Template Features:
• Pre Review Plan provided to industry by Category Manager detailing critical information to
be evaluated during review.
• Excel based template that incorporates DeCA and Retail performance, from Category,
Segment, Sub Segment, Brand and UPC level data.
• Post Review Scorecard to evaluate review execution and impact.
• Template is currently in draft format with expected completion early summer.
• Template will likely be released as a suggested template for industry use.
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Perishables
END CAP TEST FOR FROZEN / CHILL
Objectives
Provide Increased Merchandising Capability for Perishable Mandates
Insure Shelf Presence for Power Buys and Manager Specials
Decision factors:
* Patron Savings (History); Recognizable Values; High Volume and Turns; Frequently Mandated Items
* Industry Commitment to Vendor Stock and Maintain Availability
Proposed Unit and Allocation of Use
* End Cap Unit Should Have Dual Temperature Capability to Display Frozen and Chill Mandates
* Number of Weeks by Company Mandated by Weighted Factors
* Purchase Cost and Maintenance Cost Shared by Industry Based on Percentage of Mandated Weeks Allocated
* Units become property of DeCA at the end of a Two Year Program Period
Determining Weekly Promotional Allowance
* Nielsen data; Category Movers; Performance History; Seasonal factors; Patron Savings
* Industry will submit Promotional Plan, All factors Weighted and Decision Rendered by DeCA MBU.
Brad McMinn approached the Regions for stores that would like and could handle an additional an additional end
cap. 23 stores responded.
MBU will have say on placement of end caps and weeks that companies will have on end caps. Cost estimate of
program being developed. Industry to pay for end caps. Cost to be shared for Equipment and Maintenance
NTT to trade for bids is suggested
Intent: Show Regions and Agency that if Perishables has more space, we will have more sales.
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American Logistics Association
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Perishables
2009 Initiatives
Elevate Perishable Promotions
Investigate increasing perishable Power Buys, Primaries and Manager Specials and recommend the best mix for
effectively increasing sales.
Club Pack & Case Lot Promotions
Seek opportunities to increase perishable participation in case lot sales.
Industry Promotions/Cross Merchandising
Group will research ways to formalize cross merchandising efforts between perishable & semi perishable categories.
Merchandising Investments
End Caps – test program—23 stores to gain new Frozen / Chill end caps. Cost shared by industry.
Explore Opportunities for Sales Advances
The Committee will suggest to DeCA opportunities to achieve their 2009 dollar goals and objectives.
Examine Current Retail Trends
The Committee will examine current retail trends; report findings and make suggestions to keep pace.
Sub Committee Representation
The group will have sub Committee representation for Meat, Del, Frozen / Chill and Produce to ensure that all
categories are represented.
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Store Support
2009 Initiatives
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Vendor Stocking – Emphasize Current Policy
• One store at a time!
• Work / help DeCA on Scorecard process / policy.
VCM Automation
• Help DeCA with heavy VCM stores & cutting back on VCM’s written.
Execution – Improved Store Support Merchandising
• Club Pack Process
• OTB / Shipper Promotions – Work with stores on case commitments.
Resets – Develop Process:
• To Set Sections Quicker
• Maintenance of Sets Is Essential
Swell Allowance
• Refresh 1% Policy
Phase Out Policy
• Help to notify distributors.
• Work with stores on continuing to pull until distributors are depleted.
Continue Enforcement of Existing NTTs
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Promotions
Expanding Sales Opportunities
• “NEW” Themed Campaigns/Events:
• Mom’s Day Campaign - Reoccurring spring event (March-May dates tentative for 2010)
• Healthy Lifestyle Events - May through October, reoccurring
• Little Hero’s Themed Events - June through October ‘09; future years
• $6 Billion Sales Event - 3rd & 4th weeks of September
• Matrix and Promotional Calendars for 2009/2010 - Release dates:
• Matrix- released to industry May 6, input back to Russ Moffett; final to industry end of June
• Promo Calendars and themes - target release NTT July 15 for Jan. - Dec. 2010
• # of 45-day pricing periods for 2010
• Club Pack Quarterly Programs - Strong growth opportunities
• Top 70-100 volume CP items being identified -Starting with Summer Club Pack 09
• Forecasting by stores-needed in order to continue growth trends
• Cross Merchandising Programs - Center Store tie-in with Produce and Meat departments
• VCM Automation - Systems Ops taking lead - Promotions working with this committee
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