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Subsistence PRIME VENDOR Southern EUROPE 1 The Challenges of a Special PV Operation.

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Presentation on theme: "Subsistence PRIME VENDOR Southern EUROPE 1 The Challenges of a Special PV Operation."— Presentation transcript:

1 Subsistence PRIME VENDOR Southern EUROPE 1 The Challenges of a Special PV Operation

2 Subsistence PRIME VENDOR Southern EUROPE A special operation History 2. Customers & Organization 3. Daily challenges...and more 4. Operation Odyssey Dawn (ODD) 2

3 Subsistence PRIME VENDOR Southern EUROPE History Subsistence Prime Vendor and Transportation support for GFM goods 2002 / 2003 –Setup logistical pipeline for Class I subsistence for ; Operation Iraqi Freedom (OIF) Operation Enduring Freedom (OEF) –PV in Kuwait and Iraq for OIF/OEF –FF&V & Water BPA for OIF/OEF in Kuwait and Iraq FF&V BPA for Spain & Ships 2010 –Ebrex Food Services becomes part of the ES-KO Group and can now draw on the Group’s support

4 Subsistence PRIME VENDOR Southern EUROPE Customers All military services based in southern Europe All vessels (including T-AFS) in ; –Mediterranean and Black Seas ( 6th fleet AOR) 4

5 Subsistence PRIME VENDOR Southern EUROPE Geographical coverage PV Southern Europe contract covers; –Italy, Spain, Portugal, The Azores, Greece, Turkey, Kosovo, South of France, Croatia, Slovenia, FYROM, Romania, Bulgaria –Coast line of Mediterranean and Black Seas for ship support (6th fleet AOR) From Lajes AB to Incirlik AB  3,300 miles Boston to SF  2,700 miles 5 By Comparison

6 Subsistence PRIME VENDOR Southern EUROPE Centralised Order processing & Customer service Southern Europe-Locations 4 Operational platforms : –ITALY - Forli –FYROM – Gevgelija –SPAIN - Alicante –THE AZORES - Isla Terceira 6 RP AP RP

7 Subsistence PRIME VENDOR Southern EUROPE Southern Europe Our daily challenges Geographical coverage: Distance, border crossing issues, EU veterinary laws are not uniformly applied throughout Europe Customs and EU regulations All our warehouses are bonded: the goods stored for the US forces have the “in transit” status and cannot enter the EU market (US troops are our only customers) Full-time presence of Vets and regular customs inspections and different rules in different countries (Italy, Spain, Turkey, etc.) Small volume adds challenge to attain minimum order quantities imposed by manufacturers EFS’ order lead-time is days, navy ships place their orders 6 days before the RDD, regular customers 2 days 7

8 Subsistence PRIME VENDOR Southern EUROPE ….and more….. Iraq and Afghanistan wars have dramatically reduced full time presence of Navy Ships in the Mediterranean and Black Seas Navy Ships orders are highly unpredictable in terms of timing and volume Items ordered varies within the same class of ships and the crew on board The impact of Navy Ships’ orders increased over the course of the contract due to reduced volume from land based customers 8

9 Subsistence PRIME VENDOR Southern EUROPE …However… EFS demonstrated capability to quickly adapt to any new challenge –Operation Iraqi Freedom (OIF) –Operation Enduring Freedom (OEF) –Operation Odyssey Dawn (ODD) ONGOING 9

10 Subsistence PRIME VENDOR Southern EUROPE Navy Ships/Land weekly orders 10 20K 25K 15K 10K 5K CASES Week #( January 2009-April 2011)

11 Subsistence PRIME VENDOR Southern EUROPE Case Study Operation Odyssey Dawn 11 OOD : Operation Odyssey Dawn was the U.S. code name for the US part of the international military operation in Libya to enforce United Nations Security Council Resolution 1973 during the initial period of March 2011 and afterwards under NATO command as Operation Unified Protector (OUP).

12 Subsistence PRIME VENDOR Southern EUROPE Case study OOD 12 March 2 nd - DLA requested EFS to bring its inventory in line to support Navy Sales in the area of $7M per month DLA later revised the amount to $3.5M per month Following the guideline, EFS placed orders at 3 main suppliers In the first week, daily conference calls between DLA Troop Support and Ebrex were set in order to arrange for airlifts, as demand requirements due to Operation Odyssey Dawn are well above previous average demand FIRST WEEK

13 Subsistence PRIME VENDOR Southern EUROPE Airlifts were organized and are still ongoing to expedite warehouse replenishment in addition to ocean transportation 13 OOD / OUP Support

14 Subsistence PRIME VENDOR Southern EUROPE OOD / OUP Support Within 48 hours of surge warning from DLA, we doubled our average pipeline in terms of cases/dollar value To date, overall pipeline is approx. $15 million 500 % surge!! Typical level prior to OOD 14 Week # DLA surge warning

15 Subsistence PRIME VENDOR Southern EUROPE 15 OOD / OUP Support February-April 2011

16 Subsistence PRIME VENDOR Southern EUROPE Length and level of support is unclear Required support for Operation Unified Protector could end abruptly and/or be phased out The above results in a considerable financial risk for the company due to ; –Huge levels of inventory currently carried to support the surge –Shelf lives of the items –US troops being our only outlet 16 OOD / OUP – Where we are going

17 Subsistence PRIME VENDOR Southern EUROPE OOD/ Keys for success Timely communication of headcount/menu changes = reduced number of NIS and expired items Navy ships orders placed with the longest possible lead-time can guarantee the availability of items with low historical demand Special communication line for: –Challenges –Contingencies –Ensure that both surge/mobilization and demobilization are equally covered in the contract and support is equally provided 17

18 Subsistence PRIME VENDOR Southern EUROPE A solid and well supported company A 10 years proven record of experience Know-how in a vast and complicated geographical area Have met and dealt with all diverse and unpredictable arising challenges with exceptional results 18 Conclusions

19 Subsistence PRIME VENDOR Southern EUROPE 19 THANK YOU


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