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Home   About   Membership   Meetings   Government Affairs   Members Only May 14, 2010
Executive Briefing

American Logistics Association
63rd Annual Convention

October 19-21
Hyatt Regency
Bellevue, WA

President's Message

NORTHCOM Weighs in on Base Access:
Sometimes it appeared that having a FiXs ID card put a target on your back. This week in a clarifying message to all Base Commanders in CONUS, the Northern Command specifically addressed the FiXs program and the credentials issued in conjunction with the Defense Manpower Data Center (DMDC). This is not the home run we hoped for but it does send out notification to the world that the FiXs card is valid and secure and that DoD is a member of FiXs. In a letter to all FiXs credential holders, the following important information was conveyed:

The most important usage aspect for you, the FiXs credential holder, is that the FiXs credential is a trusted identity credential for use by DoD, HOWEVER, it does not carry any inherent privileges - for instance automatic base access - if you were to present or "flash" the card at an entrance gate. All decisions on "privileges," or entrance onto DoD facilities (or logical access to DoD systems), are at the discretion of the local installation commander, whether the credential is issued by DoD, another government agency, or by a commercial entity. Some commanders may decide to honor the credentials some may not. Ask the gate official, if FiXs credentials are being accepted at the installation, before presenting one as your identity credential. Be assured, however, that if the installation has authentication stations that have been equipped to check CAC and FiXs cards, that the FiXs certified credentials can be electronically authenticated on DoD applications like the Defense Cross-credentialing Identification System (DCCIS) and the Defense National Visitors Center (DNVC) system. DCCIS and the FiXs Network are currently interoperable for use with both DoD and FiXs certified authentication stations. However, even though the credentials can be electronically authenticated, they cannot be used via a "flash pass" for visual inspection. Also, you are reminded that the FiXs credential can still be used for logical applications within and across the DoD.
We have follow on meetings in mid-June to further develop the program and its acceptance.

That Light in the Tunnel is in Fact a Train!
In a widely covered speech delivered by the Defense Secretary during a visit to Kansas, Secretary Gates delivered his loudest alarm yet on military spending. Gates said he is looking for sustained savings and not merely a one time cut… in effect, he is putting all programs on the table for review. The links below will give you additional details on the Secretary’s speech and proposals. We will closely watch this issue as it unfolds into named reductions or consolidations.

Defense Chief's Efforts to Reshape Military Draws Conservative Criticism
Read the Full Story
FOXNews, Mike Emanuel
The head of the Defense Department says he wants to trim $15 billion worth of red tape from the Pentagon management. White House correspondent Mike Emanuel is at the Pentagon with some of the specifics and the pushback.

Gates Vows To Shrink Pentagon Bureaucracy
Read the Full Story
The Washington Post, Greg Jaffe
Defense Secretary Robert M. Gates vowed Saturday to lead an effort to cut as much as $15 billion in overhead costs from the Pentagon's $550 billion budget and warned that without the savings, the military will not be able to afford its current force.

The Gates Speech, Part One: The Context
By Tom Shoop Monday, May 10, 2010 8:47 AM

That was one big speech from Defense Secretary Robert Gates in Kansas on Saturday. (See the CongressDaily story and the transcript.) So big, in fact, that I'm going to use a series of posts to examine it.

First, let's look at the context: the address took place at the Dwight D. Eisenhower Presidential Library and Museum in Abilene, Kan. Eisenhower, of course, is a man known primarily for two things: victory in World War II and warning against the growth of the military-industrial complex. It was clearly no accident that Gates chose this location to make his case for cutting the Defense bureaucracy. He noted Eisenhower's efforts to rein in military spending, quoting him directly: "I say the patriot today is the fellow who can do the job with less money."

Of course, there's another context, too. Gates acknowledged that he was "fully aware of the fact that I am not the first in this office to make this case and or call for this effort." Indeed, he noted that his predecessor Donald Rumsfeld, had launched his own crusade against the Pentagon bureaucracy. Unfortunately, that endeavor was unveiled in speech on Sept. 10, 2001, and was pushed well beyond the back burner by the events of the following day.

Now, though, Gates just might be in a position to make some headway. He's got very little left to lose at this point. He had to be coaxed into taking the top Pentagon job during the Bush administration, and then to stay for the Obama transition. He doesn't need this job. Nor does he need to curry favor with anyone on Capitol Hill, in the defense industrial base - or in the White House, for that matter. So if anyone can take on all the forces arrayed against change in Defense operations, Gates just might be the guy.

Patrick B. Nixon
President, ALA

Washington Update

First lady announces study of military families
Army Times    Share    Share on FacebookTwitterShare on LinkedinE-mail article
More than 100,000 service members and their families will participate in a "landmark" study to help the administration understand the challenges these families face, first lady Michelle Obama recently announced. More

Gates talks of tough choices ahead
The Wall Street Journal    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Defense Secretary Robert Gates said the U.S.'s worsening economic problems meant the Pentagon had to slash its bloated bureaucracy and purchase cheaper weapons systems, moves that would dramatically change the Defense Department's normal ways of doing business. More

Adm. Mullen thanks spouses in surprise Norfolk speech
Hampton Roads    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The highest ranking officer in the United States military made an unannounced visit Monday night to Norfolk Naval Station, where he told a gathering of Navy spouses that their contribution to America's security has never been more important. More

Majority leader wants budget resolution by Memorial Day
Government Executive    Share    Share on FacebookTwitterShare on LinkedinE-mail article
House Majority Leader Rep. Steny Hoyer, D-Md., said he hopes to pass a fiscal 2011 budget resolution and the war supplemental appropriations bill for Iraq and Afghanistan by the Memorial Day recess. More

Army chief of staff will decide soon on troop increase
Government Executive    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Army Chief of Staff George Casey said he expects to make a decision before the end of June on whether to temporarily increase the size of his force by another 7,000 troops. More

Crush of defense workers headed for N.Va. creates challenges, opportunities
The Washington Post    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Plans to move more than 19,000 defense workers to far-flung sites along Interstate 95 in Northern Virginia by fall 2011 are expected to add thousands of car commuters to the region's road network, further clogging an area with the nation's second-worst traffic. More

Commissary News

Lettuce recall expands as FDA investigates E. coli
Associated Press via Yahoo! News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
A recall of romaine lettuce that has sickened students with E. coli poisoning is expanding as the government tries to find out where the contamination occurred. The Food and Drug Administration said late Monday that a food distributor in Moore, Okla., is recalling romaine lettuce that came from the same farm in Yuma, Ariz., that grew lettuce that sickened students in Michigan, Ohio and New York. Ohio-based Freshway Foods announced a 23-state recall of romaine lettuce last week related to those outbreaks. More

Gens X/Y, rich households hike private-label sales
Media Post    Share    Share on FacebookTwitterShare on LinkedinE-mail article
While blue-collar and large families have traditionally been some of the biggest stalwarts of private-label products, a new report from Nielsen shows some surprising new fans: Younger women, and families earning $100,000 a year or more. More

Obesity task force targets in-store ads, packaging
Supermarket News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The food and beverage industry should extend its self-regulatory program to cover all forms of marketing to children, and food retailers should avoid in-store marketing that promotes unhealthy products to children. More

Profit soars at Whole Foods
The Wall Street Journal    Share    Share on FacebookTwitterShare on LinkedinE-mail
Whole Foods Market Inc. reported Wednesday that fiscal second-quarter profits had more than doubled and raised its full-year earnings forecast. The company also shook up its management team, naming a co-chief executive, though current CEO and co-founder John Mackey said he expects to work "for another decade or so." More

Value leads store brand growth; promotion aids brand products
Media Post    Share    Share on FacebookTwitterShare on LinkedinE-mail article
According to a Nielsen study among 21 European and North American countries, reported by Todd Hale, Senior Vice President, Consumer & Shopper Insights, heavy store brand buyers are good for sales overall, leading the charge on unit growth, unit spending and trip frequency criteria. Store brands have won favor among younger households, boding well for long-term store brand prospects. More

Consumers Turning to Online Tools to Save on Groceries
Supermarket News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Consumers are increasingly turning to online tools to compare prices on grocery items, according to Deloitte's 2010 Consumer Food Safety Survey. More

Whole Foods boosts sales forecast as economy lifts specialty grocers
Cattle Network    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Whole Foods Market, Inc., said quarterly profit more than doubled and raised its 2010 sales forecast, reflecting an improving economy that's bolstering organic and specialty grocers. More

Swipe this card; shopping could be cheaper
The Associated Press    Share    Share on FacebookTwitterShare on LinkedinE-mail
Striking at a lucrative bank business, the Senate voted to force credit card companies to reduce fees for debit card transactions and permit merchants to offer customer discounts based on their payment method. More

Food industry groups back swipe fee reform amendment
Progressive Grocer    Share    Share on FacebookTwitterShare on LinkedinE-mail article
One hundred and thirty-four trade organizations, among them such food retailing industry stalwarts as Food Marketing Institute and the National Grocers Association have signed a letter addressed to all members of the U.S. Senate and endorsing an amendment to the Restoring American Financial Stability Act of 2010 sponsored by Senate Majority Whip Richard Durbin, D-Ill., that will address excessive debit card swipe fees and the practices of credit card companies and the banks that issue their cards. More

Commissary Web Posts

The following commissary items were posted to the ALA Web site as of 10 a.m., 13 May:

  • DP #12, Shipper & Promotion Quantities – CONUS
  • DP #13, Alaska Promotion & Shipper Quantities
  • 2010 Holiday Non-Food Promotion Package
  • 2010/2011 Holiday & Superbowl Promotion Package
  • DP #15, Promotion Package
  • Summer Club Pack Update #1
  • None Received
  • Adds/Changes/Deletes for week 10-19 and two 10-18 Corrected Copies
  • Guard & Reserve On-Site Sale Schedule updates
  • 46-10, Commissaries continue open, efficient, excellent accountability of taxpayer funds
  • 47-10, Commissaries honor best in meat merchandising

VCS Show and Sell 2010..The Best Ever!

(Iverson/Leahy Presentations posted)

Well the VCS Show and Sell 2010 event came and went last week. If you missed this event in St. Charles MO. you missed the Best Ever. VCS promised and delivered the most enjoyable and informative conference on record.

Attending this years event included 200 participants consisting of VCS Store Managers, Buyers, (there were lot’s of new buyers in attendance) Region Managers, and Headquarters Senior Management Personnel. On Thursday there was a Food and Vending Show, with nearly 50 exhibitors of food, vending, equipment and supplies. At the end of the week over $39 Million Dollars in new orders for merchandise was placed.

This year’s theme for the event was “Expanding Our Horizons: Our Future is Now! There was no doubt by any of this years participants the event lived up to the promise.

The Embassy Suites adjoining the St. Charles Conference Center offered World Class Service but rooms were limited and many of the vendors stayed at the Ameristar Casino Hotel about 1 Mile away. The Conference Center offered wide isles, comfortable carpeting to walk on and plenty of places for breaks and break out conferences. While it was very clear VCS is on a Roll with all but 14 of it’s just under 200 stores completely renovated, sales have doubled ($373 Million) in just a little over 3 years, and earnings are just about to break thru the same ceiling.

I walked away asking myself why anyone in Military Resale would not be a member of the American Logistics Association and not participating in events like these where both agencies partnered together to put on a World class event. If you are reading this and wondering the same thing and have questions about joining the ALA or participating in next year's event contact: Bob Ellis at, 817-201-9921.

Exchange News

Shell Oil, ConocoPhillips commend Senators for American Power Act
Convenience Store News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
In response to the introduction of the "American Power Act" by Senators John Kerry, D-Mass., and Joseph Lieberman, I-Conn., Shell released a statement commending the senators for the energy and climate bill designed to strengthen our economy, create jobs and enhance our energy security while reducing greenhouse gas emissions, the company reported. More

Costs of adding e-commerce to Brick-and-Mortar retailing
OPEN Forum    Share    Share on
FacebookTwitterShare on LinkedinE-mail article
If you're running a traditional retail store, you may be able to avoid certain expenses and use existing infrastructure in the e-commerce start-up phase. As your business grows, though, you'll find that expanding via the Web will be less expensive for certain P&L line items but require extra spending in other categories. More

McDonald's to use Facebook's upcoming location feature
Advertising Age    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Facebook is preparing to launch location-based status updates for its users. But the social network is also planning to offer it to marketers, including McDonald's. More

Report: Retailers concerned about top talent leaving their companies
Chain Store Age    Share    Share on FacebookTwitterShare on LinkedinE-mail article
As the recession eases and companies begin to add to strained staffs, retail employers are also taking action to retain existing top talent at their organizations. More

CVS to add fresh foods in urban stores    Share    Share on FacebookTwitterShare on LinkedinE-mail article
CVS Caremark Corp., the largest U.S. provider of prescription drugs, will expand its grocery section, adding fresh salads and sandwiches at urban stores to meet consumer demand and increase sales of non-pharmacy items. More

Retailers find sweet sales in pegged candy
Convenience Store News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Although convenience store candy and gum unit category sales slipped last year, pegged candy has been a sweet spot for retailers. More

Walgreens holds off on selling DNA kits amidst FDA concerns
FOX News    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The largest U.S. drugstore chain, Walgreen Co., says it is holding off selling genetic testing kits at its stores after the Food and Drug Administration raised concerns with the kits' manufacturer. More

Feeling secure?
CSP Net    Share    Share on FacebookTwitterShare on LinkedinE-mail article
July 1, 2010 is near and represents the day by which any merchant or service provider who stores, processes or transmits customer payment-card data must adhere to PCI-compliance standards. Here, "experts" help retailers withstand first wave of these compliance standards. More

National Retail Federation CEO Tracy Mullin retires
USA Today    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Tracy Mullin's is retiring her 34-year retail career. She's retiring as the 14-year president/CEO of the National Retail Federation, which represents retailers and chain restaurants. USA TODAY met with Mullin recently to talk about how retailing has changed, what stands out about Congress and the retail industry and why the world's biggest retailer isn't a member. More

NEXCOM Commander Admiral Romano Retiring — Change of Command in July

Rear Admiral (Select) Glenn C. Robillard Supply Corps
United States Navy Commanding Officer
Fleet and Industrial Supply Center, San Diego

Rear Admiral (Select) Robillard is a native of Worcester, Mass. He is a 1978 graduate of the University of Massachusetts with a Bachelor of Science in Mathematics. He received his commission through the Naval Officer Candidate School in 1983.

His initial sea tour was on board USS Simon Bolivar (SSBN 641) (Gold) as supply officer. Later sea duty assignments include supply officer, USS Woodrow Wilson (SSBN 624) (Gold), supply operations officer, USS Simon Lake (AS 33), and Military Detachment, officer in charge, USNS Saturn (T-AFS 10).

Shore assignments include Overhaul and Outfitting Department head, Polaris Material Office; officer in charge, Naval Supply Center Norfolk Detachment, Newport, R.I.; assistant director of Operations Research, Naval Inventory Control Point; Logistics Automation and Transformation officer, United States Joint Forces Command; head, Supply Detailing Branch, Office of Supply Corps Personnel; and director of Supply Corps Personnel. Robillard is now serving as commanding officer, Fleet and Industrial Supply Center, San Diego.

Robillard holds a Master's of Education degree in Mathematics from the University of Massachusetts (1982), a Master of Science in Operations Research from the Naval Postgraduate School (1994), and a Master of Arts in National Security and Strategic Studies from the Naval War College (1999). He is a distinguished graduate of both the Naval Postgraduate School and the Naval War College. Additionally, Robillard completed the Stanford Business School Executive Education Program in 2005.

His personal awards include the Legion of Merit, the Joint Meritorious Service Medal, the Meritorious Service Medal (three awards), the Joint Services Commendation Medal, and the Navy Commendation Medal (three awards). He is also a 1994 winner of the Stephen A. Tisdale Award from the Military Operations Research Society for graduate research with the most significant impact on military related issues.

Washington Update

President issues Military Spouse Appreciation Day proclamation
U.S. Air Force    Share    Share
on FacebookTwitterShare on LinkedinE-mail article
President Barack Obama has issued a proclamation declaring May 7 as Military Spouse Appreciation Day. Read a copy of the president's proclamation. More

Rolling Thunder, Wounded Warriors honor 9/11 victims
DoD    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Rolling Thunder motorcyclists joined Warrior Games athletes in a wreath-laying ceremony at the Pentagon Memorial here to honor the victims of Sept. 11, 2001. The two parties came together with the Pentagon Memorial Fund as a reminder of the possibilities to which one can aspire when faced with hardships. More

Disabled veterans face a faceless bureaucracy
NPR    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The Department of Veterans Affairs is struggling to cope with tens of thousands of veterans filing for disability benefits. Because there are applicants from two current wars — plus a new wave from the first Gulf War and Vietnam — thousands are now stuck in the clogged pipeline. More

Michelle Obama addresses military families at Georgetown
Georgetown Voice    Share    Share on FacebookTwitterShare on LinkedinE-mail article
In an address to a meeting of the National Military Family Association, First Lady Michelle Obama introduced plans for aiding the families of military members who are serving overseas. The conference - "When Parents Deploy: Understanding the Experience of Military Children and Spouses" — was held at the Georgetown University Conference Center. More

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Executive Briefing
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