Transcript Slide 1

Richmond
May 2009
Mr. Philip E. Sakowitz, Jr.
Director & CEO
Defense Commissary Agency 1
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• Sustain Customer Savings
– Benefit Value
– Mandate: 30%
– Actual: 31.1%
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• Commissary Customer Satisfaction Survey (CCSS)
– Patron Satisfaction 4.61 (out of 5.0)
• American Customer Satisfaction Index (ACSI)
– National average for commercial grocers: 76
– DeCA’s score: 76
• FDA Recalls
– Above average for commercial grocers
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Area
East
Europe
West
Total
Customer
Transactions
40.1M
10.8M
42.0M
92.9M
Percent
Change
+ 1.5%
- 1.2%
+ 2.5%
+ 1.6%
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Area
East
Europe
West
Total
Data as of May 14, 2009
Customer
Transactions
25.1M
6.9M
26.2M
58.2M
Percent
Change
+ 2.3%
+ 3.2%
+ 1.8%
+ 2.0%
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Area
Dollar
Sales
Percent
Change
East
Europe
West
Total
$2.7B
$487M
$2.6B
$5.8B
+ 4.8%
+ 2.7%
+ 5.6%
+ 5.0%
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Area
East
Europe
West
Total
Data as of May 14, 2009
Dollar
Sales
$1.8B
286M
1.7B
3.7B
Percent
Change
+ 6.0%
+ 5.3%
+ 4.51%
+ 5.2%
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• Audited Opinion of Financial Statements
– Clean Audit Opinion — 7th straight year
• Internal Controls over Financial Reporting
– In top three in DoD for FY 2008 Statement of Assurance for Internal
Controls
• Commercial Services Mgt (formerly Competitive Sourcing)
– "The Omnibus Appropriation Act prohibits funding A-76 during FY
2009."
• Constant Dollar Decline!!
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FY 2000 Constant Dollars ($M)
1,400
1,300
1,200
1,100
1,000
900
800
F Y00
F Y01
F Y02
F Y03
F Y04
F Y05
F Y06
F Y07
F Y08
F Y09
C o st (T hen Yr $ )
1,019
1,011
1,053
1,094
1,123
1,165
1,203
1,202
1,263
1,280
C o st (F Y 2000 $ )
1,019
980
983
990
985
982
978
920
912
870
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“The commissary benefit, administered by the Defense Commissary Agency
(DeCA), enhances military families' quality of life by providing them high
quality grocery and household products at significant savings.
DeCA continues to meet or exceed its performance goals, including increased
sales without increased non-inflation costs; superior stewardship of funds;
independent customer satisfaction ranking second among the U.S. largest
private sector supermarket chains; and grocery savings of at least 30 percent
compared to civilian supermarkets.
Military Personnel and families consistently rate the commissary among their
most highly valued non-pay benefits. The FY 2010 budget request for DeCA is
$1.3 billion and supports the delivery of the commissary benefit as an integral
part of the total compensation package for Military Personnel”.
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Highlights:
• Sustains commissary benefits for military members and their families
• Procures two T-AKE auxiliary cargo ships
• Fuel based on crude price of $60.98/barrel
– Lower than recent years
• Supports warfighter supply, depot and transportation needs at wartime
optempo
• Provides transformational Global Information Grid access for increased
bandwidth needs
• Supports continued progress as Pentagon Renovation project nears
completion
• Enhances anti-terrorism/force protection at Pentagon Reservation
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Groundbreaking: June 24, 2008
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Grand opening: May 28
Opened Jan 27
Richards-Gebaur, MO
Opened Apr 14
Saratoga Springs, NY
Opened Apr 21
Dyess AFB, TX
Robins AFB, GA
Grand opening: June 5
Livorno, Camp Darby, Italy
Grand opening: June 30
Fort Drum, NY
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FY
Location
Contract Award
Opening
2007
Chievres, Belgium
Sep 2007
Oct 2009
2008
New Orleans, LA
Sep 2008
Oct 2010
2008
Eglin, FL
Oct 2008
Dec 2010
2009
Fort Bliss, TX (BRAC)
May 2009
Jul 2011
2009
Fort Riley, KS (MILCON)
May 2009
May 2011
2009
Moody, GA
Aug 2009
Jul 2011
2009
Quantico, VA
Sep 2009
Aug 2011
2009
Fort Campbell, KY
Sep 2009
Oct 2011
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• 2008 Physical Activity Guidelines for Americans
– The first comprehensive guidelines on physical activity ever to be issued
by the Federal Government (HHS)
– Provides science-based guidance to help Americans aged 6 and
older improve their health through appropriate physical activity.
– “Eat Healthy and Be Active Your Way” Proclamation signed May 5
– Navy Lt. Andy Baldwin, MD, promoting physical activity in DeCA
– 150,000 copies of the guidelines distributed in 110 commissaries
worldwide
– DeCA participating in the President's Challenge May 1 - July 24 with more
than 3,500 employees registered
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• Production & Distribution of “How to Conduct a Commissary Tour” DVD
– Distribute DVD to DeCA regions, military and civilian dietitians
• Continue to work with the DoD Nutrition Environment Enhancement Team for
health promotion and promotion of the benefit.
• Target dietitians in the War College
– Outreach about the benefit and health promotion
– The Navy Health Promotion Course
– The Air Force Health and Wellness Centers
• Kit will be available on www.commissaries.com
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• DeCA is a federal partner in
promoting USDA’s initiative
to DoD community
• DeCA and its industry
partners to promote
healthier eating habits in
commissaries
• Children, military members,
seniors targeted for
reminders on healthy eating
options
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• Efforts to Improve
Your Text
here
– Re-commissioning at Mayport
Commissary
to reduce energy
use by optimizing refrigeration and air handling controls
– Preparing to conduct DeCA-wide equipment assessment to
meet FY 2015 energy and water goals
• New Initiatives
Your Text here
– Initiating Web-based refrigeration monitoring
– Low ambient “layered” lighting and daylighting at Little Creek
NAB Commissary
• Successes
– Energy reporting Web site
– Annual worldwide Facility Energy Supervisor energy
efficiency training
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• FY 2008: 104 on-site sales generated
– $4.5M in sales
– 41,347 Guard & Reserve customers
• FY 2009: 179 on-site sales scheduled (150 goal)
– 94 events have been accomplished
– $ 5.6M in sales
– 52,599 Guard & Reserve customers
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• DeCA’s new Point-of-Sale System supported by IBM
– 255 stores deployed = 100% of the total sales volume
– All stores deployed by summer 2008
–Meeting contract goal of downtime
–Exceeding Help Desk calls target
– Tremendous shift toward Self Check-Out (SCO) Technology
• SCOs account for 29% of the total lane count
• DeCA overall SCO % of store transactions average is: 31.75%
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• Our Options?
– Three legislative authorities
areText
available
Your
here for Public-Private Ventures
• Military Housing Privatization Initiative (MHPI)
• Enhanced Use Lease (EUL)
•Your
Build
tohere
Lease (BtL)
Text
– Only Build to Lease applies to DeCA – and ONLY if off-installation
• What are we doing in this arena?
– DeCA is currently studying the merits of pursuing legislative change
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• Current label operations
are labor intensive
• Technology has not
decreased the price as
expected
• Automatically installed
with all new commissary
construction
• We will replace all
commissary labels with ESL
with a 1/5 year ratio
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• Working in partnership with Industry
– Conduct meaningful dialogue and interchange of best business
practices and processes Your Text here
– Synergistic effort builds supply chain alliances and provides
vehicle for developing collaborative innovations
• Developing Industry Interchange Training Program
Your Text here
– Excellence through integration of government/commercial
processes to drive new business models
– Facilitates integrated multidisciplinary training opportunities
across core functional areas with international companies
– Key element of our Talent Development Program
• 10 Industry Partners; 6–12 month assignments
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THE ONLY WAY TO IMPROVE
UPON A MASTERPIECE?
ENTIRELY RETHINK IT
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Focus Items
• Corporate Communications Outreach efforts
• Workforce Development
• Guard and Reserve on-site sales
• Partnerships/cooperative efforts
• Business transformation
• Commissary construction/Build to Lease initiatives
• Going ‘Greener’
A model government organization providing
the marketplace of choice for the military family
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Transitioning from Opportunities to Outcomes
Strategic Opportunities
Strategic Outcomes
• Enhance the benefit in a
challenging economy
• Standardized, compliant and
documented processes
• Strengthen the benefit and its link
to recruitment, readiness and
retention
• Business priorities that drive
all solutions
• Develop a consistent and standard
approach to our business
processes
• Create a corporate culture of “One
DeCA”
• Seek the right metrics to drive
improved performance across the
enterprise
• A culture of innovation
• Investments for the future
• Leadership and workforce –
ready and able
• Infrastructure (facilities and
IT) – improve to be consistent
with our business needs
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39% subscribe
to an RSS feed
45% Have started
their own blog
55% Have
uploaded photos
83% Have watched
video clips
Social
Title
Media
77% Of active users
have read a blog
58% Have joined
a social network
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• Increased Focus on the Commissary Benefit Awareness
Your Text here
– DeCA personnel
– Industry partners
Your Text here
• All outreach
must be successful
• Must be a good steward of taxpayer dollars
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• Equitable, predictableYour
andText
consistent
levels of service
here
at all stores
• Capability to predict resources needed to meet
changing requirements
Your Text here
• Budgets based on unquestionable data and sound
analysis
• Cost and performance baseline from which to identify
improvement opportunities
• Right level of service at right cost
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•
70 Team Members - Stores, Regions and HQs
–
Your Text here
Six core business drivers:
1) Grocery
2) Meat
3) Produce
Your Text here
4) Customer Service
5) Admin/Management
6) Specialty Departments
•
The teams developed 69 ‘One DeCA’ standards”
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Phase Description
Target Completion Date
Phase I - Preparation
Service Analysis Teams (SAT) selected as experts in six services
The Champions were selected for leadership.
30 April 2009
Completed
Communities of Practice, using forums on OneNet.
Phase II – Identify and Capture
Teams met for a week long session April 20-24.
Team Champions prepared recommendations April 27 through 1 May.
01 May 2009
Completed
Phase III – Select and Model
May 13, 2009 “One DeCA” metrics are submitted & vetted
-Region deputies
-FPO
-ESC
October 2009
June-Oct. 09 Validate workload requirement to accomplish the duties, time and
work studies.
Phase IV – Solve and Deploy
Jan. 2010 Teams determine priorities within SSPs, Teams and Contractor develop
management tool.
February 2010
Feb. 2010 Cross Leveling of FTE’s
Phase V – Rollout
Implement by October 2010.
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October 2010
• Customers: Why should I shop the Commissary?
– They’ve got CLASS!
Your Text here
• Employees: What can I use to advise me on my
performance objectives?
– We’ve got CLASS!
Your Text here
• Industry: How do I know what business model
to use with the Commissary?
– They’ve got CLASS!
• Leadership: How do we validate a return on
investment of the Commissary Benefit?
– They’ve got CLASS!
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DoD Budget Scrutiny
The Economy
Competition
Together,
We Will Meet Every
Challenge!
Relevance
The
Relentless Pursuit
of Excellence
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• Thanks for your Outstanding Support:
Text here
– Every Day is Mom’s DayYour
Campaign
– ‘The Commissary – It’s Worth the Trip!’ Campaign
– Commissary Commando Competition – May ’09
Your Text here
• Upcoming
Programs & Events:
– Lil’ Heroes Baby Program – Summer ‘09
– DeCA’s $6 Billion Mark celebration – Sep ‘09
– Army 10-Miler Outreach Event – Oct ‘09
“Working Together for Synergy of Service to our Military Patrons”
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Your Text here
Your Text here
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