PRODUCE HIGHLIGHTS RoseMarie Latimore

PRODUCE CLASSES 2007 ClassLocation Date DOPQDeCA WestAug DOPQDeCA WestAug DOPQ is an advanced quality class (not for new produce managers) DOPMDeCA West July DOPM is the Department Manager Class

3 RD ANNUAL POTATO LOVER’S CONTEST WINNERS!  1 ST PLACE: March AFB  2 ND PLACE: Offutt AFB  3 RD PLACE: Fort Sill

8 TH ANNUAL PRODUCE MERCHANDISING CONTEST  100% MANDATORY PARTICIPATION!  THEME:  Fruits & Veggies-More Matters  POINT SCORING:  Displays & Merchandising = 60 points  Consumer Education Programs = 20 points  Store Metric Data = 10 points  Presentation of Entry = 10 points

8 TH ANNUAL PRODUCE MERCHANDISING CONTEST  All presentations must be in PowerPoint format.  DeCA West mandated all entries be sent to Rosemarie Latimore NLT October 1st,  Please send when entry is sent.  ADDRESS: DeCA West Region 3401 Acacia Street 3401 Acacia Street Suite 115 Suite 115 McClellan, CA McClellan, CA

FY07 YTD Produce Sales and % Change for Region OCONUS total includes Zones 12 and 13 FY07 YTD Difference % Change CONUS$63,433,761$2,692, % OCONUS$41,245,681$2,700, % TOTAL$104,679,442$5,393, % (Apr 07 Final)

FY07 YTD Produce and % Change Zone 06 Commissary FY07 YTD Difference % Change Corpus Christi NAS $390,440$13, % Dyess AFB $348,432($42,832)-10.95% Ft Hood I $1,215,749($3,909)-0.32% Ft Hood II $592,197($58,499)-8.99% Ft Sam Houston $1,818,445($9,840)-0.54% Goodfellow AFB $271,408($52,932)-16.32% (Apr 07 Final)

Commissary FY07 YTD Difference % Change Kingsville NAS $26,771($2,033)-7.06% Lackland AFB $1,725,841$22, % Laughlin AFB $140,802($3,021)-2.10% Randolph AFB $1,876,414$207, % TOTALS$8,406,499$69, % (Apr 07 Final) FY07 YTD Produce and % Change Zone 06

Commissary FY07 YTD Difference% Change Altus AFB $311,099($17,577)-5.35% Cannon AFB $248,973$11, % Ft Bliss $2,023,381$175, % Ft Sill $1,197,271$285, % Holloman AFB $509,048$64, % Kirtland AFB $1,575,589$144, % (Apr 07 Final) FY07 YTD Produce and % Change Zone 08

(Apr 07 Final) FY07 YTD Produce and % Change Zone 08 Commissary FY07 YTD Difference% Change McConnell AFB $718,536$69, % Sheppard AFB $658,595($40,832)-5.84% Tinker AFB $1,527,531($69,026)-4.32% Vance AFB $235,610$4, % White Sands $93,964$6, % TOTALS$9,099,597$634, %

Commissary FY07 YTD Difference % Change Buckley AFB $1,598,887$87, % Ellsworth AFB $465,477$33, % F.E. Warren AFB $508,208($9,263)-1.79% Ft Carson $1,791,776$119, % Ft Leavenworth $1,196,652$139, % Ft Riley $879,390$96, % (Apr 07 Final) FY07 YTD Produce and % Change Zone 09

Commissary FY07 YTD Difference % Change Grand Forks AFB $277,052($19,504)-6.58% Minot AFB $450,349($36,120)-7.42% Offutt AFB $1,386,468$49, % Peterson AFB $2,015,938$238, % USAF Academy $1,300,784$47, % TOTALS$11,870,979$746, % (Apr 07 Final) FY07 YTD Produce and % Change Zone 09

MERCHANDISING??

MERCHANDISING??

MERCHANDISING!!

MERCHANDISING!!

Sold 99 cases which equals $ in added SALES !

Sold 101 cases which equals $1, in added SALES !

Sold 292 cases which equals $4, in added SALES !

Sold 531 cases which equals $8, in added SALES !

CHALK ART SIGNAGE  DeCA West Region mandated this signage approximately 4 years ago.  PRICE COMPARISON BOARDS – Required to be updated IAW W/P Policy Letter  Remember to order nutritional inserts.  DeCA Senior Mgmt. expect to see this signage and updated price comparison boards on store visits.  ORGANICS – New Chalk Art Signage.  Washington Poster & Decal - (800) or

ORDER QUANTITY SHORTAGES  3(d): The contractor is responsible for delivery of all quantities ordered. For order quantity shortages, it is the store’s discretion to determine the urgency of the item(s) shorted by the contractor. The store must determine if the shorted item(s) are required before the next delivery (i.e. an out of stock core item) or if the store can wait until the next delivery of the item(s). If the shorted quantity is required before the next delivery, the store must contact the contractor for delivery of the shorted item(s). The contractor is responsible for maintaining a sufficient number of alternate sources of supply and the procurement of any shorted quantity. The contractor may contact the store for a recommended local source. Payment of the invoice from the alternate source of supply shall be the responsibility of the contractor. Any additional costs (i.e. difference in price from the current week’s pricing) for the shorted item(s) from the contractor’s alternate source of supply shall be borne by the contractor. Failure to fulfill order requirements will be documented and filed, and evaluated as part of the Contractor's past performance record.

EMERGENCY/ OUT OF CYCLE/ CHANGE ORDERS  3(e): Occasionally, commissary ordering personnel may need to place emergency orders or out-of-cycle orders at which time the contractor may not be given the benefit of the full order lead time, i.e. 24 hours. The Hawaii locations may require additional order lead- time to fulfill emergency/out-of-cycle/change orders. The contractor is expected to accept these orders in accordance with FAR Clause (e). Emergency and out of cycle orders may require an additional delivery that may require commissary personnel to issue the contractor a new call order number. If out-of-cycle or emergency orders are USDA inspected as a normal course of business, then they are not exempt from the USDA inspection requirement of the TDS. However, out-of-cycle or emergency orders are exempt from the USDA inspection requirement if they are not inspected as a normal course of business. NOTE: May be charged an additional fee.

DELIVERY SCHEDULE 7(a): The contractor shall provide on-time delivery of fresh fruits and vegetables (FF&V) in accordance with the Delivery Schedule at Attachment B for Area 6 including Hawaii. Any permanent changes to the delivery schedule must be executed following mutual written agreement of all parties concerned (Store Director, Region Produce Specialist, Headquarters, and Contracting Officer). The contractor shall deliver on the required delivery days as specified on the schedule and within the required timeframe for receiving produce at each commissary. The commissary store shall coordinate any unscheduled closing (i.e. inclement weather) with the contractor for alternate delivery arrangements. For the most up-to-date store information (i.e. phone numbers, directions), see Locations on DeCA’s website: The contractor will ensure consistent delivery service is provided to each location during holidays and weekends, as required by the delivery schedule.

INSPECTION/ ACCEPTANCE  8(a): Nonconforming supplies are supplies that are defective in appearance (i.e. sales appeal) or workmanship or are otherwise not in conformity with quality standards or contract requirements (i.e. ordered quantities).  8(d): For non-conforming products, the commissary has 24 hours to call the contractor’s customer service office to request that the product be picked up OR request a credit/price adjustment. The contractor’s customer service representative will evaluate each request and arrange for the product to be picked up or issue a case price reduction. Pick up of non-conforming product must be made by the next delivery or disposition of the product will be at the discretion of the Store Director or designee.

PRODUCT EXCLUSIONS/ UNAUTHORIZED ITEMS  12: Any item that is available on a grocery contract/agreement shall not be provided by the produce contractor, unless prior written approval is received by the Region Produce Specialist and Headquarters Produce Program Manager. These items include, but not limited to: hummus, jarred products (olives, garlic, grape leaves, fruit, salsa, etc.), candy (bulk, prepackaged), product “wash” items, apple chips, apple cider (shelf stable), croutons, kimchee, wrappers (wonton and egg roll), tofu, soy products (cheese, meat, etc.) and salad dressings (chilled).

ORDER QUANTITY SHORTAGES  3(d): The contractor is responsible for delivery of all quantities ordered. For order quantity shortages, it is the store’s discretion to determine the urgency of the item(s) shorted by the contractor. The store must determine if the shorted item(s) are required before the next delivery (i.e. an out of stock core item) or if the store can wait until the next delivery of the item(s). If the shorted quantity is required before the next delivery, the store must contact the contractor for delivery of the shorted item(s). The contractor is responsible for maintaining a sufficient number of alternate sources of supply and the procurement of any shorted quantity. The contractor may contact the store for a recommended local source. Payment of the invoice from the alternate source of supply shall be the responsibility of the contractor. Any additional costs (i.e. difference in price from the current week’s pricing) for the shorted item(s) from the contractor’s alternate source of supply shall be borne by the contractor. Failure to fulfill order requirements will be documented and filed, and evaluated as part of the Contractor's past performance record.

EMERGENCY/ OUT OF CYCLE/ CHANGE ORDERS  3(e): Occasionally, commissary ordering personnel may need to place emergency orders or out-of-cycle orders at which time the contractor may not be given the benefit of the full order lead time, i.e. 24 hours. The Hawaii locations may require additional order lead- time to fulfill emergency/out-of-cycle/change orders. The contractor is expected to accept these orders in accordance with FAR Clause (e). Emergency and out of cycle orders may require an additional delivery that may require commissary personnel to issue the contractor a new call order number. If out-of-cycle or emergency orders are USDA inspected as a normal course of business, then they are not exempt from the USDA inspection requirement of the TDS. However, out-of-cycle or emergency orders are exempt from the USDA inspection requirement if they are not inspected as a normal course of business. NOTE: May be charged an additional fee.

DELIVERY SCHEDULE 7(a): The contractor shall provide on-time delivery of fresh fruits and vegetables (FF&V) in accordance with the Delivery Schedule at Attachment B for Area 6 including Hawaii. Any permanent changes to the delivery schedule must be executed following mutual written agreement of all parties concerned (Store Director, Region Produce Specialist, Headquarters, and Contracting Officer). The contractor shall deliver on the required delivery days as specified on the schedule and within the required timeframe for receiving produce at each commissary. The commissary store shall coordinate any unscheduled closing (i.e. inclement weather) with the contractor for alternate delivery arrangements. For the most up-to-date store information (i.e. phone numbers, directions), see Locations on DeCA’s website: The contractor will ensure consistent delivery service is provided to each location during holidays and weekends, as required by the delivery schedule.

INSPECTION/ ACCEPTANCE  8(a): Nonconforming supplies are supplies that are defective in appearance (i.e. sales appeal) or workmanship or are otherwise not in conformity with quality standards or contract requirements (i.e. ordered quantities).  8(d): For non-conforming products, the commissary has 24 hours to call the contractor’s customer service office to request that the product be picked up OR request a credit/price adjustment. The contractor’s customer service representative will evaluate each request and arrange for the product to be picked up or issue a case price reduction. Pick up of non-conforming product must be made by the next delivery or disposition of the product will be at the discretion of the Store Director or designee.

ACCOUNTABLITY  MANAGER’S SPECIAL – It is required to have one of the weekly produce contractor provided Manager’s specials at zero % mark up at all times and all others Manager’s specials may have up to 7% markup. INVENTORY TOLERANCE – Monthly 2% loss or gain, cumulative 1% gain or no loss. SALVAGE LOG – Recommended to track daily loss by using the spreadsheet recently provided to all stores. Recommend using the spreadsheet recently provided to all stores. PRODUCE SPOT CHECKS - It is still a requirement in DeCAD 40-4 for SD’s to do documented weekly spot check of produce product deliveries. END OF MONTH MEMO ENTRIES – Stores need to track credits and do an end of month memo entry for credits still due by the produce contractor. Recommend using the spreadsheet recently provided to all stores.

CREDIT TRACKING Date Original Invoice/Call # Credit Invoice/Call # Credit Due Credit Received Difference $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 TOTALS $0.00$0.00$0.00

SALVAGE TRACKING PRODUCT PRICE PER CURRENTEXT. NAME LB or EACH PRICEVALUE APPLES GRANNY 10 $0.00 PLUMS TOMATO 5$0.70$3.50 GREEN PEPPERS 40$0.40$16.00 REDUCED APPLES $2.00$0.00 CUCUMBER ENGLISH 10 $0.00 REDUCEDLETTUCE17$0.35$5.95 HONEY DEW 9$3.18$28.62 LETTUCE HEADS 17$0.96$16.32 NAVEL ORANGES 1.34$0.70$0.94 BUTTER NUT SQUASH $0.00 REDUCED APPLES 2$2.00$4.00 LETTUCE HEADS 125$0.95$ ROMA TOMATOES $0.00 ENGLISH CUM 10$1.57$15.70 $0.00 TOTALS246.34$12.81$209.78

PRODUCT STORAGE  Temperature Requirements and Storage Recent change to all refrigeration contracts Processing rooms temperatures changed from no more than 50º to from 55º to 68º Processing rooms temperatures changed from no more than 50º to from 55º to 68º 58º recommended for processing room58º recommended for processing room 35 to 40º for back-up storage rooms35 to 40º for back-up storage rooms Ensure Ethylene and non-ethylene products are segregated in back room and sales floor.Ensure Ethylene and non-ethylene products are segregated in back room and sales floor.  Bulk Nuts Should be displayed in containers with lids. Should be displayed in containers with lids.

MATERIAL HANDLING EQUIPMENT  Knives w/holder, Safety Box Cutters, Cutting Gloves, Goggles & Boots/Shoes – Are required mandatory safety gear for all produce department personnel. Additionally it is required to provide training on proper usage of these this items. ( Item# 47301) ( Item# 47301)  Forklifts & Power Jacks – Training & certification are required BEFORE use!!! Ensure documentation is recorded on form in each employee’s personnel folder.

INCREASING SALES  SUGGESTIONS: 1. Utilize Farmers Market sales. 2. Ensure all weekly Manager’s Special provided by your produce contractor are signed. 3. Utilize passive and non-passive demo on your weekly Manager’s Specials. 4. Set an Organic section. 5. Communicate with your customers to see what new items they’d like to see, then ask you produce contractor to bring it in for you. 6. Merchandise, merchandise, merchandise!!!

FINAL THOUGHTS  These new contracts are only as good as you make them by enforcing all elements. Produce is not grocery, but produce sales can be increased by following basic good business practices. You have got to communicate your needs, plan and execute sales, and document performance both good and bad. The contracts must be enforced and product quality standards held, or it will never get any better.

CONCLUSION QUESTIONS???