1. "Ensuring Our Patrons' Benefits for Years to Come"
Defense Commissary Agency
October 25, 2017

2. Topics New Stores Hurricane Relief EBS Update Congressional Direction
Department of Defense Direction
Improving the Customer Experience
Supply Chain
MSO/VSO Engagement and Outreach

3. NAS Jacksonville, Florida
New Stores
NAS Jacksonville, Florida
Surcharge-Funded
Grand Opening held February 2, 2017
Click2Go capability incorporated

4. New Stores Fort Belvoir, Virginia Surcharge-Funded
Grand Opening held March 30, 2017
Click2Go capability incorporated

5. Camp Humphreys, South Korea
New Stores
Camp Humphreys, South Korea
Host Nation Funded
Opening 2nd Qtr 2018

6. Thank you industry partners!
Hurricane Relief
Triple threat of Harvey, Irma and Maria impacted more than 30 stores
Emergency Operations Center and COOP activated August 24
Commissaries were often the last support activity to close during mandatory evacuations & one of first to re-open
Great team effort from dedicated employees & industry partners to take care of customers
Returning to normalcy & accolades from the military community
Thank you industry partners!

7. EBS Timeline
2016
2017
2018
2019
Month 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2
Power HQ
deployment
Increment One
Bill Back Manager deployment
Category Analyzer
deployment
Vendor Portal
Phase 1 deployment
Galleria deployment
Vendor Portal
Phase 2 deployment
Power Inventory Management
deployment
Increment Two
Power DAX deployment
Increment Three
Retail One deployment
R10 deployment
Power Financials
deployment
Increment Four
Power Enterprise deployment

8. EBS Update
NCR provided on-site training at Fort Lee in support of the Vendor Portal
A total of 17 Vendor Training and Onboarding sessions have been offered to date
Training evaluation survey yielded positive feedback
- 83% excellent
- 12% good
- 5% fair
All participants were on-boarded into Vendor Portal after training

9. Congressional Direction
2016 & 2017 NDAAs
Reduce reliance on appropriation through offsetting operating cost & recognized some level of appropriation is required to maintain customer savings
- Variable pricing
- CPI
- Private Label
- Consider NAF
Establish & adhere to customer
savings baseline
- Quarterly reporting to Congress required

10. DOD Direction Reduce reliance on appropriation
- Military Services concerned with cost of providing the benefit
- Department is reviewing all compensation for possible savings
Cooperative efforts
- Supply chain
- Joint merchandising
- E-commerce
- Acquisition
NAF
Invest in business with strategic focus – benefit, timeline, ROI

11. Supply Chain and Vendor Stocking
Challenges
Complex system involving different stakeholders
- Difficult to stay aligned and maintain efficiencies
- May create costs that flow through patrons and tax payers
- Ultimately not keeping us at the in stock rates our patrons deserve
- Supply chain structure study is underway

12. Bringing Back Customers Through Business Transformation
Cost plus model lessened competitiveness resulting in customer loss
Large retailers like Walmart (National Brands), Aldi and Lidl (Store Brands) are the recognized price leaders in the grocery business aggressively investing in lowering prices
DeCA will consider multiple factors to determine strategic price (e.g., market price, cost of product, importance to customer)
Our pricing strategy will maintain the patron savings baseline and generate margin to offset operating costs

13. Bringing Back Customers Through Improvement of Customer Experience
Renewed focus on patron outreach & resale system being the “hub” for the installation
Continued focus on optimization of perishable/perimeter departments
- Meat quality
- Produce quality
- Meal solutions
Maximize center store
- Stock availability and stock rate
- Tailoring stock assortment and resetting stores

14. Bringing Back Customers Through Improvement of Customer Experience
Expand e-commerce starting with curb side pickup
Continued collaboration initiatives with industry
Resale system collaborative efforts on one stop shopping
Become consumer centric
- Focus on Fresh
- The health halo – nutrition guide program
- Instant gratification on the go (convenience)
- New is nice - Experiences, products, brands

15. Stakeholder outreach moving forward
More frequent MSO/ VSO engagement
- Large scale format
- ASD level and DeCA Director level - status and update oriented
- Smaller scale format
- DeCA senior level – more in-depth discussion oriented
- Topics not limited to transformation
Local engagement with Patrons (hub stores)
- Will solicit patron feedback and ideas regarding how to improve the shopping experience

16. Working together to grow
the business!!
Thank you!!