Mr. Joseph H. JeuDeCA Director

Mr. Joseph H. JeuDeCA Director

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• Commitment to the Benefit

• Sound business acumen

• Dedicated workforce

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“Innovation is the ability to see change as an opportunity – not a

threat”

     

“Excellence is not a skill. It is an attitude.”

Store Focus

Collaboration

Excellence in Service

Entrepreneurial Spirit

Innovation

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• Performance Management

– Outcome Focused

– Accountability

– Decisions Based on

Empirical Evidence

– Not Business as Usual

     

Stretch Goals Will Take Us to the Next LevelStretch Goals Will Take Us to the Next Level

•Quality of Life– Savings totaled $2.69B in FY 2010

– Ancillary Support: industry contributions to installations, give-aways, scholarship program totaling $244M

– Military-Related Employment: 62.5% of DeCA workforce• Industry also employees military family members

•Military Readiness– Peace of Mind: focus on mission vs. family/sense of community

– Recruitment: family member advocacy

– Retention: GAO Report NSIAD-99-197

•Cost Avoidance– Defense Transportation System: a leading peacetime shipper of

military goods overseas

– Cost of Living Allowance: reduced for commissary presence

•Emergency Support6

•FY 2010

–Events: 156

–Sales: $8.68 Million

–Savings: $4.0 Million

–Patrons served: 70,244

• YTD FY 2011

–Events: 103

–Sales: $6.07 Million

–Savings: $2.81 Million

–Patrons served: 44,186

Providing the Benefit On-Site to Our Guard & ReserveProviding the Benefit On-Site to Our Guard & Reserve

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• Current savings figures for commissary shoppers

– FAMILY of FOUR can save over $4,476

– FAMILY of THREE can save nearly $3,494

– A COUPLE can save over $2,827

– SINGLE can save over $1,542

Your Commissary – It’s Worth the Trip!Your Commissary – It’s Worth the Trip!

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• Thank you!

• Partnerships – Win/Win

– Growing Business

– Pricing

• Mature Business

– Evolving

– Manufacturers

• Welcome Suggestions

     

• Suspends the exemption allowed on sales to Federal Government– Assesses 4% tax

• Allowed for continued exemption if contract prohibits passing of tax– DeCA Hawaii based contracts amended

• It is the vendor’s responsibility to determine it’s liability for the tax

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• Commissary Customer Service Survey (CCSS)

– Patron Satisfaction

– 4.68 (out of 5.0)

• American Customer Satisfaction Index (ACSI)

– ACSI Supermarket Industry Average: 75

– DeCA’s ACSI: 80

Customer Service at All Time High!Customer Service at All Time High!

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* DeCA sales data based on CY 2010 data for U.S. stores (including Puerto Rico) over $2 million in CY 2010 (176 Commissaries) to compare with industry

** Savings % used was the 2010 DeCA U.S. (50 State) savings of 29.9% after tax and surcharge. This % is applicable to U.S. data as used in these computations. Overall 2010 DeCA Worldwide savings after tax and surcharge was 31.5%

***Supermarket data from Food Marketing Institute (FMI) Web site www.fmi.org (Supermarket Facts - Figures - Industry Overview)

Measure DeCA Actual*DeCA**

Adjusted for DeCA Savings

Supermarket***

Weekly Sales/Square Foot $16.96 $24.18 $11.78

Weekly Sales $542,576 $773,620 $466,011

Customer Purchase $64.87 $92.49 $26.78

Square Feet/Store 31,996 31,996 46,000

Sales $4.966B $7.081B $562.746B

DeCA Compares Well with Leading Supermarket Chains!DeCA Compares Well with Leading Supermarket Chains!

Total 62.5

%

Total 62.5

%

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• Military Spouses – 4,254 or 27.3%

• Dependents – 1,970 or 12.6%

• Sponsors:

– Retirees – 1,648 or 10.6%

– Guard and Reserve – 268 or 1.7%

• Other Veterans – 1,602 or 10.3%

*Population – DeCA U.S. Civilian Employees – 15,579

• “Unqualified” opinion of financial statements for 9th

straight year!

• Tied for first place along with DLA and SOCOM for

FY 2010 Statement of Assurance

• Designated as DoD “Gold Standard” for Managers’

Internal Control Program

Great Stewards of Taxpayer Dollars!Great Stewards of Taxpayer Dollars!

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• Turn key gift card program

– Rolled out program June 29, 2011

– Fort Bliss Commissary Grand Opening

• Available in two denominations

– $25.00 and $50.00

• Purchase at store or via Internet

• Replaced paper voucher program

– No longer available for sale

– Redeemable through August 2016

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• Background:

–DeCA selected Inmar, Inc. as the provider of the rewards card

– Negotiations are ongoing

• Benefits:

–Program will allow savings via digital coupons as a new medium

–Reduces fraudulent coupons

–Reduces redemption errors

–Reduces packing and shipping of coupons

• Moving forward:

–To participate, Industry must partner directly with Inmar, Inc.

– Estimated program deployment: 1st Quarter FY 2012

– Program name – “Commissary Rewards Card”

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• Commissary Connection–More than 33,500 subscribers

• Facebook–Interactive medium with over 10,060 fans

–Averaging 500,000 views per month

• Guard & Reserve Sales Schedule Newsletter–More than 2,100 subscribers

• YouTube

• Flickr

• Radio

Social Media Presence Supplements Print, Broadcast, and Internet Media

for Greater Audience Reach

Increasing DeCA’s Reach in a Short Time!Increasing DeCA’s Reach in a Short Time!

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• Future campaigns tied to promotion calendar

• “Your Family is Our Family” customer

appreciation campaign

• “Shop After Work” campaign

• “Great Inside the Gate” campaign

• Commissary Commando competition

Eglin AFB, FL

Moody AFB, GA

Fort Riley, KS

NAS-JRB, New Orleans, LA

Fort Campbell, KY

Fort Bliss, TX

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• Energy– 0.4% annual reduction FY 2010 (4.2% cost increase)– Expect 0.5% in FY 2011– Implementing additional projects to meet FY 2015 goal

• Water– 17.6% reduction from FY 2007 baseline (FY 2011 Goal 8%)

• Waste Management – Cardboard recycling (FY 2010: 53,004 tons/FY 2011 goal 56,613)– FY 2010 Surcharge revenue $5 million/DWCF cost avoidance $62,876

• High Performance Sustainable Buildings– Designing to LEED standards

• Environmental Management System certified as conformant with ISO 14001

• DeCA initiatives resulted in two awards presented in October, 2010– Federal Electronics Challenge Bronze level– Federal Energy and Water Management Award

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• Why restructure now?

– Secretary Gates’ memorandums directing reduction of

overhead costs

– Directed budget reductions

– Known duplication of work activities above store level

– Impact of Global Transformation to serviced population

– Continued impact of automation and growing complexity

on mission

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* Denotes SES position (6)

*CHIEF OPERATING OFFICER/DEPUTY DIRECTOR

*DIRECTOR DeCA WEST

(MCCLELLAN, CA)

ZONES(12)

STORES

*DIRECTOR DeCA EUROPE(KAPAUN AS, GE)

ZONES (4)

STORES

*DIRECTOR DeCA EAST

(FORT LEE, VA)

ZONES(11)

STORES

HEADQUARTERSSUPPORT OFFICE

*DIRECTOR/CHIEF EXECUTIVE OFFICER

*CHIEF OF STAFF

OFFICE OF THE GENERAL COUNSEL

INFORMATION TECHNOLOGYDIRECTORATE

RESOURCEMANAGEMENTDIRECTORATE

HUMAN RESOURCES

DIRECTORATE

PERFORMANCE& POLICY

DIRECTORATE

CORPORATEPLANNING

DIRECTORATE

CORPORATECOMMUNICATIONS

DIRECTORATE

SALES DIRECTORATE

PUBLIC HEALTH& SAFETY

DIRECTORATE

OFFICE OF THE INSPECTOR GENERAL

OFFICE OF INTERNAL AUDIT

DeCAWASHINGTON OFFICE

CSM/SEA

CONTRACTINGDIRECTORATE

EEO DIRECTORATE

WORKFORCEDEVELOPMENTDIRECTORATE

As of FY 2010Total 14,681 civilian auth FTEs (includes US Direct Hires and Foreign National Direct and Indirect Hires)Total 5 military authorized billets

Current Organizational Chart

Director / Chief Executive Officer

Deputy / Chief Operating Officer

Executive Director Store Operations

Executive DirectorSales, Marketing & Policy

Executive DirectorLogistics and Engineering Executive Director

Business Enterprise

Requirements and Strategic Integration

Resource Management

Human Resources

Information Technology

Engineering

Logistics

Sales

Store Support Health & Safety

General Counsel

Washington Office

CONUS and OCONUS Stores

Senior Enlisted Advisor

Inspector General/Security

Acquisition Management

Operations & Policy

Resale Contracting

EEOExecutive Services Division

Internal Audit

Corporate Planning

CDC and CMPP

Corporate Communications

Green blocks - assets located at Ft Lee & geographically dispersed

Yellow blocks - ALL assets geographically dispersed

Blue blocks - ALL assets at Fort Lee

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