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EDITORIAL COMMENT
DECEMBER 2008
 
ALA and Resale — Connected With Their 'Heroes' ...

After the recently concluded 61st American Logistics Association (ALA) Convention, held Oct. 20-23 at the OMNI Shoreham Hotel, Washington, D.C., attendees could look back at a fairly typical ALA meeting, but one that was punctuated by numerous highlights.

These included speeches by Gen. Richard Myers, USAF (Ret.), former chairman of the Joint Chiefs of Staff, Deputy Assistant Secretary of Defense for Internal Communications and Public Liaison Dr. Allison Barber, and motivational speakers Lt. Col. Greg Gadson, USA (Ret.), Petty Officer 1st Class Marcus Luttrell, USN (Ret.); presentations by the resale service leadership addressing the current positions of their respective services, and an animated and candid discussion of base access. (See page 20 and E&C News 11/08 Editorial.)

The presentations made by leaders of the military resale services on both Wednesday and Thursday of the conference demonstrated the resourcefulness of these services amid the trying financial situation our country is currently experiencing. They also demonstrated that while government and the military may not be recession proof, nor immune to their own versions of belt-tightening, they represent a vital collection of organizations that will continue to operate in spite of the dire state of an economy in recession.

On Wednesday, Navy Exchange Service Command (NEXCOM) Comm-ander Rear Adm. Robert J. Bianchi, SC, USN was the first resale chief to speak to attendees, and all we can say is, “God bless the Navy.” They have their sailing orders and guidance from the Chief of Naval Operations (CNO) and they sail along, performing their job with fair winds and following seas.

NEXCOM sales have increased by more than 6 percent as of October, and the McLane Co. experiment is no longer an experiment; even though it was controversial when first implemented, they made the right decision with the servicemember in mind. Like a ship's captain who, even if the electronic aids are down, can determine a course by the stars and sea charts, NEXCOM knows its course intuitively, and is clearly becoming more efficient for sailors and Navy families.

Following Bianchi on Wednesday was Maj. Gen. Timothy Larsen, USMC (Ret.), director of the Personal and Family Readiness Division (PFRD), which oversees Marine Corps Exchanges (MCX).

Larsen brought us up to date on the MCX and the phenomenal sales growth it has experienced as it continues to renovate and remodel both its large and small stores, with sales up 16 percent as of October, driving its capitalization and fueling Marine Corps Community Services (MCCS).

The MCX is dedicating itself to Marines and Marine families, and Larsen noted MCX is helping families by offering diapers, baby food and other items at cost.

On Thursday, Capt. Edward N. Eng, USCG, revealed that the Office of Exchange and Morale he leads will, sometime in the spring, stand up as the Coast Guard Community Services Command, signifying the importance attached to its mission by Coast Guard leadership. We truly believe Eng should be given a gold star for his efforts in energizing the Coast Guard Exchange System (CGES). With his customer base and types of stores he oversees, this is no small undertaking.

Sales have increased more than 5 percent as of October, and with the fact that the entire Coast Guard force is smaller in number than that of the New York City Police Department (NYPD), maybe Eng should offer to run stores for New York's Finest.

Chief Operating Officer (COO) Mike Howard delivered the Army & Air Force Exchange Service's (AAFES) presentation in place of Maj. Gen. Keith L. Thurgood, USA, who was called away by other duties. Howard explained the ways in which the exchange service continues to reinvent itself, and is doing so successfully, with sales as of October more than 5-percent better than prior year.

Howard spoke about the increased emphasis on lifestyle centers, and cooperative efforts between AAFES and Army Morale, Welfare and Recreation (MWR) in several areas, including transportation, warehousing and procurement.

The way AAFES does business is not unlike the way a football team sets up different formations based on the opponents they face. They adjust when they need to, making challenges easier to overcome. The future looks positive for AAFES.

The Defense Commissary Agency (DeCA) was represented by Director Philip E. Sakowitz Jr. and Chief Operating Officer (COO) Richard Page. Sakowitz spoke first, and for those of you who were not in attendance, we can tell you that there is no doubt who is in charge at the agency. Sakowitz summed up the agency's many accomplishments in support of service, Guard and reserve families during recent months, and was also clear about DeCA's patron orientation: “We make sure that servicemembers can count on that support — and you help us do that. They know we've got their backs, so that they can do their job over there.”

The former Army Installation Management Command (IMCOM) executive director explained that burgeoning military construction programs on Army bases, and new room formats that include stoves in “one-plus-one” housing quarters, expand the possibilities for the agency and its suppliers. Fiscal 2009, he said, should continue DeCA's strength in the marketplace. However, when it comes to the job of communicating the value of the benefit, “We're going to kick it up a notch,” he said.

Then Rick Page took his turn at the podium to testify to DeCA's robust 2008 performance and its sales objectives for 2009. He emphasized what he has been saying recently: that DeCA could hit the $6 billion sales mark — after posting $5.813 billion in sales in fiscal 2008, a 5-percent improvement — not only that, but that he is a firm believer in “stretch goals” beyond the $6 billion mark that the agency has within its grasp.

With the organization they have, they have a real good shot at reaching — and exceeding — every goal that they have in front of them.

Veterans Canteen Service (VCS) Director Marilyn Iverson followed with her passionate presentation on the state of the VCS and the role it plays in the Department of Veterans Affairs (VA). She is as dedicated an executive as there is. Her message was unambiguous: the VCS has a bright future serving our military veterans. Year-to-date October sales growth of 9.5 percent bears witness that the “Iverson effect” has been a catalyst to unleashing VCS's strengths and talents in new ways.

If anyone can extend the legacy of her predecessor, long-time Director James Donahoe, it is Iverson. She has begun to transform how the VCS does business, to the greater benefit of veterans, VA patients, their caregivers and families.

On Wednesday, a panel composed of MWR service procurement chiefs (see page 22) explained the ways in which institutional products are procured for a broad spectrum of MWR activities. While the panel was made up of great people who gave terrific presentations, we feel that it was directed at the wrong audience. Our two cents: it would have been better to present this panel at a meeting of MWR vendors and suppliers, as opposed to their companies' retail representatives. Anyone can nit-pick anything, but overall a fine job was done by all involved with ALA 2008.


What are your feelings on these subjects? Please drop us a line at
ebm-mail@ebmpubs.com.

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