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1 Mr. Philip E. Sakowitz, Jr. Director & CEO Defense Commissary Agency Richmond May 2009 Richmond...
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Transcript of 1 Mr. Philip E. Sakowitz, Jr. Director & CEO Defense Commissary Agency Richmond May 2009 Richmond...
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Mr. Philip E. Sakowitz, Jr.Director & CEODefense Commissary Agency
RichmondMay 2009
RichmondMay 2009
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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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AreaCustomer
TransactionsPercent Change
East 40.1M + 1.5%Europe 10.8M - 1.2%
West 42.0M + 2.5%Total 92.9M + 1.6%
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AreaCustomer
TransactionsPercent Change
East 25.1M + 2.3%Europe 6.9M + 3.2%
West 26.2M + 1.8%Total 58.2M + 2.0%
Data as of May 14, 2009
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AreaDollar Sales
Percent Change
East $2.7B + 4.8%Europe $487M + 2.7%
West $2.6B + 5.6%Total $5.8B + 5.0%
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Area Dollar Sales
Percent Change
East $1.8B + 6.0%Europe 286M + 5.3%West 1.7B + 4.51%Total 3.7B + 5.2%
Data as of May 14, 2009
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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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800
900
1,000
1,100
1,200
1,300
1,400
Cost (Then Yr $) 1,019 1,011 1,053 1,094 1,123 1,165 1,203 1,202 1,263 1,280
Cost (FY 2000 $) 1,019 980 983 990 985 982 978 920 912 870
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
FY 2000 Constant Dollars ($M)
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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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Richards-Gebaur, MO
Dyess AFB, TX
Robins AFB, GA
Livorno, Camp Darby, ItalySaratoga Springs, NY
Fort Drum, NY
Opened Apr 14Grand opening: June 5
Opened Jan 27 Grand opening: May 28
Opened Apr 21Grand opening: June 30
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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– 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
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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 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
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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 – 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
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ENTIRELY RETHINK ITENTIRELY RETHINK IT
THE ONLY WAY TO IMPROVEUPON A MASTERPIECE?THE ONLY WAY TO IMPROVEUPON A MASTERPIECE?
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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 OutcomesStrategic 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
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39% subscribeto an RSS feed
TitleSocialMedia
83% Have watched video clips
55% Have uploaded photos
58% Have joined a social network
77% Of active usershave read a blog
45% Have started their own blog
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• Increased Focus on the Commissary Benefit Awareness
– DeCA personnel
– Industry partners
• All outreach must be successful
• Must be a good steward of taxpayer dollars
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• 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
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• 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”
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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 FTE’s
Phase V – Rollout
Implement by October 2010.
Target Completion Date
30 April 2009Completed
01 May 2009Completed
October 2009
February 2010
October 2010
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• Customers: Why should I shop the Commissary?– They’ve got CLASS!
• Employees: What can I use to advise me on my performance objectives?– We’ve got CLASS!
• 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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Together, We Will Meet Every
Challenge!
The Relentless Pursuit
of Excellence
The Relentless Pursuit
of Excellence
DoD Budget Scrutiny
The Economy
Competition
Relevance
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• Thanks for your Outstanding Support:– Every Day is Mom’s Day Campaign
– ‘The Commissary – It’s Worth the Trip!’ Campaign
– Commissary Commando Competition – May ’09
• 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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