DEFENSE COMMISSARY AGENCY Your Commissary … It’s Worth the Trip! Distribution Update ALA Commissary Roundtable, May 1, 2015 Mr. Eric Swayzee Director for Logistics

Your Commissary … It’s Worth the Trip! Defense Commissary Agency Distributor Discrepancy Rate (DDR)/Distributor Damage Program (DDP) – All FDS supported stores on programs and internal DeCA Validation Program implemented – 1st QTR validations completed, Distributors notified of results/negotiations in process – ROA requirement FDS Delivery Metrix – Volume Driven by Distributor -- Similar to Blue Ribbon – Finalizing parameters – “Enforceable” ROA requirement Fill Rates US and Overseas – Rates are being addressed by Sales with the manufactures/brokers, “DATA Driven” Call in Orders of FDS items to Distributors by store and vendors – Drive cost out of the system “DATA Driven” – Store Operations /Logistics monitoring compliance 2 Distribution Initiatives

Your Commissary … It’s Worth the Trip! Defense Commissary Agency Social Responsibility-Green Initiatives – Industry’s initiatives identified, many initiatives already used by DeCA. – Overseas Pallet Recovery--wooden pallet disposal cost and landfill closures Plastic pallets, Establishing No Cost Sales Agreements, Return to Pallets to Distributors in the US Full cost benefit analysis of alternatives Commercial Best Practices-Multiple Pulls – Drive Costs out of the system – Store Operations monitoring compliance Distributor Roundtable Meetings – Formalize Distributor/DeCA communications roundtable meetings. – DeCA plans to continue roundtables in FY Sharing Best Practices