5 Commissary Customer Satisfaction Survey (CCSS) – Patron Satisfaction 4.61 (out of 5.0) American Customer Satisfaction Index (ACSI) – National average for commercial grocers: 76 – DeCAs score: 76 FDA Recalls – Above average for commercial grocers
7 Area Customer Transactions Percent Change East25.1M+ 2.3% Europe6.9M+ 3.2% West26.2M+ 1.8% Total58.2M+ 2.0% Data as of May 14, 2009
8 Area Dollar Sales Percent Change East$2.7B+ 4.8% Europe$487M+ 2.7% West$2.6B+ 5.6% Total$5.8B+ 5.0%
9 Area Dollar Sales Percent Change East$1.8B+ 6.0% Europe286M+ 5.3% West1.7B+ 4.51% Total3.7B+ 5.2% Data as of May 14, 2009
10 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!!
12 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.
13 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
16 Richards-Gebaur, MO Dyess AFB, TX Robins AFB, GA Livorno, Camp Darby, Italy Saratoga Springs, NY Fort Drum, NY Opened Apr 14 Grand opening: June 5 Opened Jan 27 Grand opening: May 28 Opened Apr 21 Grand opening: June 30
17 FYLocation Contract Award Opening 2007Chievres, BelgiumSep 2007 Oct 2009 2008New Orleans, LASep 2008 Oct 2010 2008Eglin, FLOct 2008 Dec 2010 2009Fort Bliss, TX (BRAC)May 2009 Jul 2011 2009Fort Riley, KS (MILCON)May 2009 May 2011 2009Moody, GAAug 2009 Jul 2011 2009Quantico, VASep 2009 Aug 2011 2009Fort Campbell, KYSep 2009 Oct 2011
18 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
19 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.comwww.commissaries.com
20 DeCA is a federal partner in promoting USDAs 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
21 Your Text here Efforts to Improve –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 –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 Your Text here
23 DeCAs 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%
25 Your Text here Our Options? –Three legislative authorities are available for Public-Private Ventures Military Housing Privatization Initiative (MHPI) Enhanced Use Lease (EUL) Build to Lease (BtL) –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
26 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
27 Your Text here Working in partnership with Industry –Conduct meaningful dialogue and interchange of best business practices and processes –Synergistic effort builds supply chain alliances and provides vehicle for developing collaborative innovations Developing Industry Interchange Training Program –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
28 ENTIRELY RETHINK IT THE ONLY WAY TO IMPROVE UPON A MASTERPIECE?
29 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
30 Transitioning from Opportunities to Outcomes Strategic Opportunities Enhance the benefit in a challenging economy Strengthen the benefit and its link to recruitment, readiness and retention 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 Strategic Outcomes Standardized, compliant and documented processes Business priorities that drive all solutions 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
32 39% subscribe to an RSS feed Title Social Media 83% Have watched video clips 55% Have uploaded photos 58% Have joined a social network 77% Of active users have read a blog 45% Have started their own blog
33 Your Text here Increased Focus on the Commissary Benefit Awareness –DeCA personnel –Industry partners All outreach must be successful Must be a good steward of taxpayer dollars
35 Your Text here Equitable, predictable and consistent levels of service at all stores Capability to predict resources needed to meet changing requirements 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
36 Your Text here 70 Team Members - Stores, Regions and HQs –Six core business drivers : 1)Grocery 2)Meat 3)Produce 4)Customer Service 5)Admin/Management 6)Specialty Departments The teams developed 69 One DeCA standards
37 Phase Description Phase I - Preparation Service Analysis Teams (SAT) selected as experts in six services The Champions were selected for leadership. 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. Phase III – Select and Model May 13, 2009 One DeCA metrics are submitted & vetted -Region deputies -FPO -ESC 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. Feb. 2010 Cross Leveling of FTEs Phase V – Rollout Implement by October 2010. Target Completion Date 30 April 2009 Completed 01 May 2009 Completed October 2009 February 2010 October 2010
38 Your Text here Customers: Why should I shop the Commissary? –Theyve got CLASS! Employees: What can I use to advise me on my performance objectives? –Weve got CLASS! Industry: How do I know what business model to use with the Commissary? –Theyve got CLASS! Leadership: How do we validate a return on investment of the Commissary Benefit? –Theyve got CLASS!
39 Together, We Will Meet Every Challenge! The Relentless Pursuit of Excellence The Relentless Pursuit of Excellence DoD Budget Scrutiny The Economy Competition Relevance
40 Your Text here Thanks for your Outstanding Support: –Every Day is Moms Day Campaign –The Commissary – Its Worth the Trip! Campaign –Commissary Commando Competition – May 09 Upcoming Programs & Events: –Lil Heroes Baby Program – Summer 09 –DeCAs $6 Billion Mark celebration – Sep 09 –Army 10-Miler Outreach Event – Oct 09 Working Together for Synergy of Service to our Military Patrons