ALA Commissary RoundtableRichmond, Virginia

May 1, 2014Mr. Joseph H. Jeu

DeCA Director

Agenda• The video highlights that we are in the midst of

changing and challenging times• Presentation topics include:

– DoD budget overview

– Transformational focus items

– Supporting initiatives

– Final thoughts

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DoD Budget Proposal Overview• Streamlines legislative provisions to enable DeCA

to become partially self-sustaining– Phased budgetary reduction by $1B over three years

• $200M in FY15, $600M in FY16, and $1B in FY17

– Become partially self-sustaining by ending current “sell at cost” model and instead sell items at mark-up

– DeCA will continue to receive approximately $400M annually

– Patron savings reduced from 30%

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Taking Care of Military Families• Ongoing business transformation proceeds

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− Enterprise Business Solution

– CLICK2GO

− Category Management

− Rewards Card

− Alternate Store Formats

− Shopper Insights

Enterprise Business Solution• Most important transformation

– Comprehensive worldwide & across the supply chain business process engineering

– Standardize and improve processes

– Adopt “retail business suite” as used in commercial grocery

– Modernize DeCA’s supply chain in 4 increments

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Essential for continued support of military familiesEssential for continued support of military families

Taking Care of Military Families• Working together, we have a tremendous

opportunity to better support our nation’s military families through focus on:

– Fresh & healthy alternatives

– Case lot sales

– Guard & Reserve sales

– Manufacturer & distributor fill rates

– Improved vendor stocking support

– Timely introduction of new items

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Final Thoughts & The Way Ahead

• Tough times for DoD as it balances resources to readiness

• DeCA continuing with transformation and modernization of the commissary business

• We appreciate your continued support of our nation's military families

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Thank you for all you do for our valued patrons!Thank you for all you do for our valued patrons!

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