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18 OUR MISSION The American Logistics Associationpromotes, protects and enhances the militaryresale and quality of life benefits on behalf ofour members and the military community.
AmericanLogisticsASSOCIATION
Increasing revenue has not been easy. Membership dues and meeting attendance are the top two incomegenerators and are in direct correlation with each member’s business. We have worked hard to try to make themeetings more informational in content. This is demonstrated by the attendance by several of the top Pentagonofficials involved in change management at this year’s convention. Trying to have the annual convention in moredesirable yet affordable locations in the coming years should also bring more people to the ALA NationalConventions in the future.
Publicizing past accomplishments is probably the most important of the three objectives. The averagemember takes the hard work the ALA does for granted. Steve Rossetti and Pat Nixon have arranged for the ALA tohave a seat at the table with the top Pentagon personnel as they study consolidation in the future. They have done agreat job penetrating the many Congressional Offices and Senate staffers to keep the Resale Benefit top of mind.They continue to do a great job keeping the funding for all of the agencies in place as budgets get tighter and tighterfor all government agencies every year. Russ Moffett does a great job representing each member in the halls ofDeCA, and Bob Ellis does the same with the Exchanges. Tracey Durand does a great job with meetings, and Mauricedoes a fantastic job of keeping all of this together. It has been one of my greatest honors to work with each of thesepeople over the past year.
These three priorities are interwoven. The membership needs to know how much the ALA staff has done forthem in both the past and the present. Walking the halls of the Pentagon and Congress is not cheap, and it takesrevenue to have these meetings and provide them the data they need to continuously defend this benefit. The fundsfor doing this comes from growing sales in the future and these three things together create the “Triangle for Success”
The 2017-2018 Board of Directors met these challenges head on and were determined to affect these changesat every level. The process will continue with Marty Johnson taking over as your new Chairman and we will continueto make inroads in 2019 and beyond.
JeffJeff White, Chairman, ALA Board of Directors
The “Triangle for Success” The year has flown by and it has been my honor to serve asthe American Logistics Association’s Chairman of the Board for the2017-2018 year. This year was full of many challenges as we allcontinue to weather the storms of outside competition, new systems,changes in leadership, and the possibility of consolidation at alllevels.
Your ALA Board of Directors had three major yet simpleobjectives set at the beginning of the fiscal year:
1. Do what we can to help each Resale Group improve sales; 2. Increase revenue to enable the ALA to do more in the halls
of the Pentagon and Congress; and3. Publicize the many accomplishments the ALA has created
in both the past and present.Increasing sales for the commissaries is something we are all
working toward. The ALA in conjunction with the CommissaryCouncil was instrumental in putting together the Joint BusinessPlanning Meeting and are working with DeCA leadership to adoptJoint Business Planning as the standard for the future. This will be aslow process, but will benefit everyone when it is fully operational.
The 2017-2018 Board of Directors also met with the CEO’sof the Exchanges and discussed what the ALA could do to help themincrease sales and improve their individual businesses. Each groupshared their business plans they had in place that have led to theirgrowth and success over the past year.
LEAD
“This year was full of manychallenges as we allcontinue to weather thestorms of outsidecompetition, new systems,changes in leadership, andthe possibility ofconsolidation at all levels.”
-- Jeff White, Chairman, ALA Board of Directors
provided the fuel to expand ouradvocacy and outreach with: 4 Congress, 4 Department of Defense4 Defense leaders4 Veteran organizations 4 Military patrons4 Coalition valued associates
our membership Y
“The system is strong, but fragile.We have so many advantages: on-
base real estate, favorable taxstatus, and a commissary and
exchange brand that patrons haveidentified with for years. We must
build on these fundamentals toprovide a platform for growth and
vitality.”
-- Steve Rossetti, ALA GovernmentAffairs Advisor
member companies149
LEAD
FY ending June 30, 2018
Photo l to r: Steve Rossetti, Congressman Joe Wilson
ALA is than amembership.
It is a
moremore
partnership.partnership.
STRE
NGTH
ENSTRE
NGTH
EN
2018 Overview$total assets$3,098,241total liabiities$1,159,313total unrestricted net assets$1,639,950total change in net assets-$256,723cash and cashequivalents year-end$187,136
2018 income bytype
2018 expenditures by function
40%
40%
13%7%
meetings
conventionmembership dues
other
publications
55%15%
14%
2% 14%
From the Treasurer
meetings
patronadvocacy
publications
administration
As Treasurer, I see first hand and appreciate the role you, our members, play in supporting theassociation. Through dues, sponsorships, and meetings registration support, I cannot possibly expressenough gratitude for that support.
In summary, FY 2018 saw a decline in revenues, but also a reduction in expenses. Overall, theAssociation performed $49K better than the planned budget. I am also happy to report yet another clean,unmodified audit opinion.
We all are aware that positive results do not just happen. They are the outcome of a well thought outplan. The financial goals we set out to realize are consistently tied to the needs of the association, and aredriven off its mission to preserve and protect the benefit. We cannot achieve those objectives without yourfervent support, in good times as well as the bad.
Again, I want to personally thank those of you that have so graciously sponsored our conferencesand events over the past year.
DennisDennis JonesTreasurer, ALA Board of Directors
STRENGTHEN
“You have my assurancethat I remain committed tocommissary and exchange
programs.”
-- Congresswoman MadeleineBordallo (D-Guam)
Iwould like to thank the membership for theopportunity to serve on the ALA Board of Directors andact as its Treasurer for the past year.
This has been an exceptionally challenging year asthe same financial pressures facing our Government andthe benefit at its core, has had an inextricable impact onthe ALA, its overall role, and certainly its finances. Ourassociation has invested heavily this past year to do itsutmost in the protection of “the benefit”.
Photo (l to r): Congresswoman Madeleine Bordallo(D-Guam), Dennis Jones, Fletcher Dawson
“The Caucus was a goodintroduction to thelegislative players that areshaping our industry.From Congress to theAdministration, I have abetter understanding of thechalleges facing us.”
-- Attendee, 2017 ALACongressional Caucus & PublicPolicy Forum
ALA successfully conductedsix events this year, providingattendees:
industry best practices
expert insight into rapid changes in the retail businessincreased one on one interaction deeper insight into issuesaffecting the management,funding and structure of military resale
1234partipants gained new
insights into themilitary resale industry
688
EDUC
ATE
Photo (l to r): Congressman Walter B. Jones (D-NC), Jed Becker, Ken Sieloff, Mike Skinner
EDUCATE
Our Sponsors
ALA motivated Congress to establish the MilitaryResale Patron Benefits Advisory Commission, providingpatrons with the opportunity to express their views toCongress and the Department of Defense.
ALA engaged an expert in category management toassist us in ensuring that CPI negotiations and otherinitiatives do not further damage sales.
ALA continues to work with Department of Defenseleadership to provide our views on the path theDepartment should take with regard to all issues thatwill affect the military resale system.
ALA met the challenges of reduced funding forcommissaries and exchanges and commissary andexchange privatization head-on; and we were able toblunt changes that would have devastated thesystem.
ALA continues to transform itself -- taking on theissues that are front and center with the membership.
ALA is working with the commissary agency to aid intheir transformation with regular, frequent meetingswith their leadership.
ALA is supporting the exchanges in their drive toimprove offerings, including e-commerce.
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VIGILA
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“ALA is bullish on theresale system...with theaddition of 45 millionveterans and families tothe exchange shoppingranks and more authorizedfor commissary benefits.”
-- ALA Member
This year...
And, let’s notforget, volumefloats all boats.
annual military resale market sales$18.5 billion
ALA will be working to keep you informed on theimpact of changes in the leadership, whether inCongress or in the Administration, as well assupporting people and policies that reflects theinterests of our membership.
ALA will work to ensure that Congress or theAdminstration does not impede the exchangebusiness, allowing the exchanges to enjoy theadvantages of government with the businessflexibility.
ALA will continue work as a proponent to givepatrons the shopping convenience they experienceoutside the gate.
ALA will work to unchain the system from archaicrestrictions on personel and management, providingresale leaders and managers the tools they need tobe more agile and market responsive.
a
a
a
a
VIGILANT
“Throughout thetransformation, themarketplace remainsvibrant. Each day morethan 13 million servicemembers and their familiesshop at military exchangeand commissary outlets.”
-- ALA Member
Looking forward...
ALA membership support and participation continues to be vital,and collectively the ALA membership can work to ensure ahealthy and vibrant marketplace for products and services. Weurge our members: Stay engaged...and Stay tuned for a veryinteresting year.
13 millionservice members and their familiesshop at military exchanges and
commissary outlets.
t’s hard to believeanother year has comeand gone. Once again, we are meeting toreflect on the rapid pace of change inmilitary resale, and its impact on ourassociation and how the association conducts
its business. I can report that the association continues to improve on itsrelationships with the Administration and Congress as well as the ResaleAgencies and MWR Services.
At the same time, the more familiar challenges remain: recruiting andretaining members, generating new revenue streams, creating compellingmeeting experiences, and delivering learning opportunities in formats and attimes that serve members best. We need to do all this while remaining acutelyaware of longer-term drivers of change that will usher in a future that looksvery different from the present. We have an enormous responsibility to takethe ALA to another level and to leave our footprints in the sands of time.Membership engagement is critical to reaching that accomplishment. As always, I am deeply grateful to the ALA membership for your profoundcommitment to the Military Resale System. Your dedicated involvementmoves the ALA forward. Our mission is clear— Only the best for those thathave served, those that continue to serve, and their families!
MauriceMaurice Branch, President, ALA
Above: Maurice Branch, President
I
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A Bo
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STAFFALA
Chair, Jeff White, The J.M. Smucker CompanyVice Chair, Marty Johnson, E&J Gallo WinerySecretary, Joanna Boeckl, Prime Team ServicesTreasurer, Dennis Jones, Tyson FoodsChair Emeritus, Kurt Hall, UnileverDirector, Dennis Chambers, Eurpac Strategic PartnersDirector, Tommie Draper, OSC-WEBcoDirector, Rick Jones, Acosta Sales & MarketingDirector, Marc Knowles, Procter & GambleDirector, Peter Murphy, S&K Sales Co.Director, Mike Owart, SupervaluDirector, Rick Page, Coastal Pacific Food DistributorsDirector, Mike Sleighter, Advantage Military
Maurice Branch, PresidentBob Ellis, Vice President,
Exchange Affairs & Member ServicesRuss Moffett, Vice President,
Commissary Affairs & Member ServicesTracey Durand, Director, Meetings
Robin Sampson, Accounting Manager
Your businessbusinessYour partnerpartnerYour ALA!
PROMOTE PROTECTENHANCEMIL ITARYQ U A L I T YO F L I F EBENEFITS
American Logistics Association1101 Vermont Avenue, NW Suite 1002Washington, DC 20005(202) 466-2520
