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Home   About   Membership   Meetings   Government Affairs   Members Only Oct. 15, 2010
Executive Briefing

American Logistics Association
63rd Annual Convention

October 19-21, 2010
Hyatt Regency, Bellevue, WA
Click HERE for details!

President's Message

Budget pressure heats up:

More weapons cuts, reductions expected
Read the Full Story
Boston Globe, Tony Capaccio, Bloomberg News
The Department of Defense will probably recommend another round of spending cuts or terminations in major weapons systems that are missing cost and schedule goals, the nation's top military official said.

Lawmaker group urges deep military spending cuts
Read the Full Story
Reuters, Jim Wolf
Fifty-seven of the 535 members of the Senate and House of Representatives urged a commission looking for ways to balance the federal budget to recommend substantial cuts in Defense Department spending.

U.S.A.F. chief makes stark budget predictions
Read the Full Story
Aerospace Daily & Defense Report, David A. Fulghum
The U.S. Air Force's financial and operational future lacks "complete certitude," but the auguries are nonetheless grim, says the chief of staff, Gen. Norton Schwartz.

Military families rate the top issues:

Survey: Pay and benefits remain an issue for military families
Read the Full Story
Government Executive, Norah Swanson
Pay and benefits, deployments and their effects on children weigh heavily on the minds of military families, according to a new survey. Eighteen percent of respondents to a May 2010 online survey by the nonprofit Blue Star Families reported pay and benefits as their chief concern, and 41 percent of respondents said it ranked among the top three issues associated with military life.

How can you help the troops:

Americans seek ways to contribute to war efforts
Read the Full Story
USA Today, Rick Hampson
From hoops to auctions, many find their niche. As the nation begins a 10th year of fighting in Afghanistan, Dave Cummings and other Americans are trying to express their patriotism in offbeat and idiosyncratic ways.

Shipping to troops? Watch the calendar
Read the Full Story
The Washington Post, Ed O'Keefe
Are you planning to mail holiday packages to troops in Afghanistan or Iraq? The U.S. Postal Service is urging customers to plan ahead.

Patrick B. Nixon
President, ALA

Washington Update

McDonnell anxious to discuss closing
The Washington Post    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Virginia Gov. Robert F. McDonnell says Defense Secretary Robert M. Gates has assured him of a future meeting to discuss the planned closing of the Joint Forces Command in Hampton Roads. Pentagon officials assured McDonnell last week that the meeting would occur. A date is still being worked out. More

Gates underscores US commitment to South Korea security
Reuters    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Defense Secretary Robert Gates underscored U.S. commitment to South Korea's security recently amid concerns about possible North Korean aggression after its ailing leader tapped his youngest son as his successor. Cooperation between the governments of South Korea and the United States "sends a clear message to North Korea that it's provocation and aggression will not be tolerated," Gates told a Pentagon news conference after a meeting with his South Korean counterpart. More

DoD to explore new energy-saving solutions
Army Times    Share    Share on
FacebookTwitterShare on LinkedinE-mail article
What's up: The Democratic chairman and the ranking Republican on the House Armed Services Committee agree that cutting energy costs is a good way for the Defense Department to save money. In a Sept. 29 letter to Defense Secretary Robert Gates, Rep. Ike Skelton, and Rep. Howard "Buck" McKeon, singled out operations-related energy use as a place for savings, suggesting converting tactical waste to energy and improving insulation on structures are ideas worth exploring.

What's next: A prime example of the potential is the Army's claim that it cut energy costs by 55 percent by covering a building in Baghdad in foam, something Skelton and McKeon said is a "low-technology solution" that reduced heating fuel consumption by 10,690 gallons a year. They want the Defense Department to deliver a list of energy-saving ideas to the House committee early next year, in advance of the 2012 budget.

Pentagon going green, because it has to
Yahoo! News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The U.S. military's heavy dependence on fossil fuels is a dangerous vulnerability, officials said recently as they made a fresh push to develop renewable energy solutions for the battlefield. In the wake of a spate of deadly attacks on tankers carrying fuel to foreign troops in Afghanistan, Admiral Mike Mullen, the chairman of the Joint Chiefs of Staff, spoke of a "strategic imperative" for the US military to become more efficient and find new sources of energy. More

Lawmakers urge deficit panel to back Defense cuts
Government Executive    Share    Share on FacebookTwitterShare on LinkedinE-mail article
House Financial Services Committee Chairman Rep. Barney Frank, and more than 50 other lawmakers sent a letter to the Commission on Fiscal Responsibility and Reform recently describing the "urgent need" to cut excess defense spending. "We're not just talking about reform, or doing more efficiently what we already do" Frank said in a conference call with reporters. "We're talking about how we don't need to do as much" when it comes to defense, he said. More

Commissary News

Little relief in sight for supermarket operators
Supermarket News    Share    Share on FacebookTwitterShare on LinkedinE-mail
Financial results in the second half of 2010 are likely to be very similar to what the industry experienced in the first half, with few indications the economy is recovering, industry analysts told Supermarket News. "A lot of it had to do with attempts to gain a competitive advantage, especially once Wal-Mart came out with its price rollbacks," Meredith Adler, managing director for Barclays Securities, New York, explained. More

NY food deserts allocated $30 million
Supermarket News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Gov. David A. Paterson has announced the availability of $30 million for the New York Healthy Food & Healthy Communities Fund to finance the building of food markets in underserved communities, also known as food deserts. "Today's announcement is a major step forward in ensuring the health and well-being of all New Yorkers," Paterson said. "As part of the state's broader Healthy Food/Healthy Communities Initiative, the New York Healthy Food & Healthy Communities Fund provides financing for infrastructure costs and credit needs not typically filled by conventional financial institutions. Through this unique model, the fund will increase the supply of affordable, fresh food in underserved areas, improve the diets and health outcomes of the state's residents, and spur economic development in these neighborhoods." More

Kings Super Markets selects 'Guiding Stars' to help busy shoppers identify nutritious foods
Earth Times    Share    Share on FacebookTwitterShare on LinkedinE-mail article
With many consumers seeking easy ways to achieve a healthier lifestyle, Kings Super Markets implemented Guiding Stars®, the world's first store-wide nutrition guidance program in all 24 grocery stores located in New Jersey and Long Island, NY. In conjunction with Kings' "Living Well" program, Guiding Stars will provide shoppers with a simple, at-a-glance tool that helps them quickly identify foods that offer the most nutrition for the calories. More

FreshDirect redesigns 4-minute meals department: Launches foodie fantasy sweepstakes
Biz Journals    Share    Share on FacebookTwitterShare on LinkedinE-mail article
FreshDirect, New York City's premier online grocer which has long helped customers save time and money, recently announced a new shopping experience for its popular 4-Minute Meals, offering customers a smarter, easier way to shop. 4-Minute Meals, prepared fresh daily in FreshDirect's kitchen, are crafted exclusively for FreshDirect from recipes by top chefs from Manhattan's finest restaurants. Customers can choose from over 80 options of restaurant-quality cuisine, using the highest quality of meats, fresh caught seafood and fresh from the farm vegetables. More

General Mills launches Spanish language app for iPad
Progressive Grocer    Share    Share on FacebookTwitterShare on LinkedinE-mail article
General Mills Inc. has launched its first Spanish-language application for the Apple iPad platform, which will provide Spanish-speaking consumers with instant access to more than 900 Latin-inspired recipes, in 12 different categories, such as appetizers and snacks, breakfasts, salads, garnishes, drinks, and beverages, breads, pastas, pastries and cookies, entrees, desserts, sauces, and soups. The app, Qué Rica Vida Recetario, is available at no charge on iTunes. "We think this technology is an excellent platform for showcasing our very popular recipes and our award-winning photography," said Rodolfo Rodriguez, multicultural marketing director for Minneapolis-based General Mills. More

Commissary Announcements

Commissary Web Posts

The following commissary items were posted to the ALA website as of 10 a.m., October 14, 2010:

  • DP #22, Update #1 & Alaska Promotion & Shipper Quantities.
  • DP #19, Update #3.
  • Fall Club Pack, Update #3.
  • Holiday Gift Packs HBC Gift Packs, Update #3.
  • Holiday Baking, Update #3.

  • 11-04, Dry Fruit.

  • Adds/Changes/Deletes, Week 10-41.
  • Guard & Reserve On-Site Sale Schedule updates.
  • Mix & Match Sale Excel Format 40-15, posted with NTT
  • 11-01 and also under DeCA Forms.

Exchange News

Nutrition info on fast-food menus may influence parent's choices for kids
TheHeart.Org    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The Obama administration's health-reform bill calls for fast-food chain restaurants nationwide to provide nutritional information on menu boards at the point of purchase — a policy expected to be fleshed out and implemented over the next few years. Just whether this will translate into patrons choosing lower-calorie items, potentially lowering the prevalence of overweight and obesity in the U.S., is unclear. More

In support of menu labeling, the National Restaurant Association turns to the Web for nutrition analysis
PR Web    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The National Restaurant Association has announced its official partnership with web-based nutrition analysis solutions pioneer FoodCALC, endorsing the company's revolutionary recipe nutrition analysis tool, MenuCalc, among its preferred analysis providers. The partnership comes at a timely period for the industry, with the recent passage of the national menu labeling law affecting a record number of restaurateurs across the country. More

Gasoline pump prices rise on oil and corn rallies
The Associated Press via Google News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Drivers have seen gas pump prices jump by nearly a dime a gallon recently because of a rally in prices for oil and corn, from which the gas additive ethanol is made. Yet, the price hike is probably temporary because traders will have a difficult time ignoring fundamentals — demand has fallen, supplies are plentiful and consumers are holding on to their cash as they continue to worry about the economy, said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. More

Gap asks consumers to recycle their jeans
Retailing Today    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Gap announced that through Oct. 20, it is teaming up with Cotton Incorporated to collect old denim, which will be given a "new life" by being converted into UltraTouch Denim Insulation by Bonded Logic Inc., and donated to communities in need. Shoppers can recycle their denim at more than 1,000 Gap stores in the United States and Canada, and those who donate their denim will receive 30 percent off new 1969 jeans purchases. More

Macy's announces energy-saving moves, including rollout of LED accent lighting
Chain Store Age    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Macy's has begun construction on a 3.5-megawatt high-efficiency solar power system on the roof of its online fulfillment center in Goodyear, Ariz. When completed in March 2011, the installation is expected to be the largest solar power system on a single rooftop in the United States. In other energy-saving moves, Macy's has become the first department store company to implement the use of LED accent lighting on a wide scale. More

Exchange Announcements

Dan Daniel D.C. visit questions:

  • Please explain OEF/OIF?
    It's an acronym that refers to the conflicts in Afganistan and Iraq. Specifically, OEF/OIF refers to "Operation Enduring Freedom" and "Operation Iraqi Freedom." In the meantime the OIF acronym has been changed to "OND," Operation New Dawn, with respect to the new mission now underway there. All future reference to any Exchange operation in Iraq will use the "OND" acronym.

  • Do you transship from here?
    Yes, there are 4 scenarios of transship that may pass through DDDC — Warehouse to Warehouse, Warehouse to Store, Supplier to Store/Whse, or Store to Store. System changes are moving Store to Store movements back to the stores, LG is helping in that transition.

  • Is cost per case inbound or outbound?
    Cost per case is our total is a metric used within the distribution center that accounts for all our operating expenses divided by the number of cases processed in a given month.

  • Would it be helpful if we could share goal to meet objective of $2.20 cost per case?
    This offer is attractive but would be difficult to administer on an overall basis. The best opportunity to drive down our supply chain costs for both sides is to work to achieve 100 percent compliance in your shipping, delivery, accuracy, and marking. Deviations or non-compliance ends up costing both of us significantly and in the long run slows down getting merchandise to the point of sale.

  • How can vendor's help get Tallies resolved?
    First and foremost, work not to create them. But if they do occur, bear in mind that the purchasing teams are required to clear these in 48 hours. There are many instances where they wait a week or more for a supplier's return authorization on a simple overage. Your commitment to react quickly to those errors that are identified will save time and reduce AAFES expenses

  • Is Qatar still a Navy Exchange?
    Yes, Qatar still operates with Navy Exchanges. AAFES has facilities that operate independently within Qatar as well.

  • Who absorbs the cost of container shipments that get lost or damage in OEF/OND?
    AAFES absorbs the cost, and if carrier/contractor is at fault, a claim(s) is processed to recoup loss.

  • Do you run on your own costs?
    DDDC is part of AAFES yet all costs that occur to operate DDDC remains in DDDC. No appropriated funds are used to support DDDC.

  • What is surcharge?
    Surcharge is a method which AAFES uses to allocate operational costs to both its internal and external customers. The method surcharge is applied is by warehouse handling type and not a cost per case number. Different physical methods to handle merchandise — repack, pallet pick, bulk pick and conveyor pick — all have different time requirements thus different costs.

  • Do you serve other services and how has that business grown?
    We service DECA with tobacco products, Coast Guards and MWR activities with general merchandise. Transship merchandise for MWR has steadily increased in addition to number of facilities served.

  • When will Ft. Gillem go away?
    Ft. Gillem will close 28 January 2011.

  • UPS/SCS is still there (Ft. Gillem) - will it stay?
    No AAFES no longer uses UPS/SCS in the Atlanta area as of July 2010. That part of the business has been moved internally to the Dan Daniel and West Coast DC based on vendor ship points.

  • Did anything change in Afghanistan because of the command changes?
    The Marines are supporting their new sites in Sothern Afghanistan — there have been no changes in AAFES operations.

  • Is DDDC the largest?
    Dan Daniel DC is the largest AAFES Distribution Center under one roof at 1.4M square feet.

  • Is Giessen the supplier for Europe?
    Actually the largest supplier for AAFES facilities in Europe is the Dan Daniel DC. GDC supports with limited very specific categories of merchandise.

  • What is the time-line when Giessen will close?
    Giessen is scheduled for closure and relocation to Germersheim in late 2014.

  • How far is Germersheim from Giessen?
    Approximately 100 miles.

  • What causes locations to freeze?
    Locations within a warehouse operation can be frozen for many reasons. The most common are damaged merchandise which includes expired product, rewarehousing of product, cyclic inventory counts and case pack changes. The DC works hard at minimizing this problem but again help from our vendor community can help reduce the number of these issues through compliance.

ALA inquiries regarding transportation

  1. Concerning the AAFES transportation network

    a. What are the opportunities, etc. relative to commercial carriers (and does that include less than a truckload, full truckloads and inter-modal?), your CDCs and AAFES' fleet?

    AAFES bases carrier selection on carriers that can provide the best service at the lowest price while meeting our basic carrier requirements — insurance coverage, safety records, financial stability and need. Carriers must also be able to work with the AAFES Transportation Management System. Currently the AAFES fleet is meeting most of the truckload needs and AAFES is not adding new carriers.

    b. Is there currently a list of preferred carriers with POCs and how do you secure such a list, if it exists?

    For FOB origin vendors, carrier assignment is either provided with the purchase order or through the TMS. For FOB destination orders, a preferred carrier is provided on the PO's. Local terminals operated by the carriers can be contacted for pickup.

    c. Do vendors/suppliers have to ship directly to the stores, your distribution centers, consolidation centers or ports?

    No. Ship-To locations are provided on the PO, with the exception of large shipments for OCONUS. Those PO's are stamped "call AAFES Logistics" and are routed by the LG export group either direct to an AAFES location.

    d. If a combination of routing possibilities exists, how is the supplier notified of the routing requirements/destination?

    Routing instructions are provided either by the Purchase Order or through the TMS and there is not a combination of routing possibilities, one routing is provided per PO.

    e. Do you have a routing guide or handbook available?

    No, all routing instructions are either provided on the PO or by the TMS. Logistics information is available in section 5 of the AAFES Suppliers Requirements publication. Don't we have a routing guide for non TMS cross dock vendors?

    f. How are items tracked once they enter the AAFES transportation network?

    Carriers provide EDI updates to the AAFES PO tracking system.

    g. Do suppliers have visibility of the transportation status of items once surrendered to AAFES transportation network? If so, how?

    Vendors do not have access to the AAFES PO track system. They can track shipments through carrier tracking systems from the carrier website. Or utilizing their TMS.

  2. Can you describe the AAFES transportation system(s) requirements?

    a. How are commercial carrier rates submitted?

    Rates are submitted to the AAFES Transportation office in Dallas, Texas on U.S. Government tender forms.

    b. Is an EDI system used for billing and shipment status?

    Orders routed through the TMS require carriers to update shipment status and billing is accomplished through the TMS as well. Some carriers use a system an electronic freight payment system run by US Bank called PowerTrack.

    c. Is there a single software/system in utilization or does each carrier have their own proprietary EDI/software system?

    AAFES utilizes industry standard EDI transactions. In addition, AAFES' TMS is a proprietary software system developed by Infor and can be utilized by authorized TMS carriers via the . How does your EDI system differ from that used by carriers serving military commissaries? Are they the same or different? If different, how?

    AAFES has no direct knowledge of DECA's transportation technology systems.

    d. If there is an AAFES preferred carrier list, do suppliers have to develop a relationship with one, some or all of the listed carriers in order to supply product to different locations as routed by AAFES?

    AAFES provides/assigns carriers on FOB Origin shipments. We also include those carriers as "preferred" on destination orders. We have found that if destination vendors utilize these carriers, service may improve. We do not require vendors to develop relationships with carriers.

  3. Can you provide us with a POC for additional transportation and logistical questions relative to doing business with AAFES?

    Tansportation: Kent Altom will be the POC effective 23 Aug. He can be reached via email at, or by telephone at (214) 312-2882.

    Note: Operational POC should be directed to your specific buyer who can make sure it is handed to appropriate Logistics Liaison.

Washington Update

Family and MWR Command seizes Social Media moment
Army MWR News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The use of was approved and encouraged by the Department of Defense almost eighteen months ago. The Family and MWR Command has been using this Social Media website ever since, creating a virtual community of Soldiers, their Families, Civilian Employees, Retirees, and authorized patrons of Army MWR programs and services. More

Grunt Apparel, Inc.

Grunt Apparel specializes in original military inspired designs in silk screen & embroidery at low prices. Licensed by all military branches.
More info

Hubert Company

Stimulate Holiday sales and create a festive atmosphere with Bountiful Thanksgiving kits and fall prop and décor. More

Tyson Foods, Inc.

Tyson Foods is dedicated to bringing you quality, service, and support you need to drive sales. More


Executive Briefing
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