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The Challenges of a Special PV Operation

The Challenges of a Special PV Operation. A special operation. 1. History 2. Customers & Organization 3. Daily challenges...and more 4. Operation Odyssey Dawn (ODD). History. 1998 - Subsistence Prime Vendor and Transportation support for GFM goods 2002 / 2003

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The Challenges of a Special PV Operation

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  1. The Challenges of a Special PV Operation

  2. A special operation.... 1. History 2. Customers & Organization 3. Daily challenges...and more 4. Operation Odyssey Dawn (ODD)

  3. History • 1998- Subsistence Prime Vendor and Transportation support for GFM goods • 2002 / 2003 • Setup logistical pipeline for Class I subsistence for ; • Operation Iraqi Freedom (OIF) • Operation Enduring Freedom (OEF) • PV in Kuwait and Iraq for OIF/OEF • FF&V & Water BPA for OIF/OEF in Kuwait and Iraq • 2004- FF&V BPA for Spain & Ships • 2010 • Ebrex Food Services becomes part of the ES-KO Group and can now draw on the Group’s support +

  4. Customers • All military services based in southern Europe • All vessels (including T-AFS) in ; • Mediterranean and Black Seas(6th fleet AOR)

  5. Geographical coverage • PV Southern Europe contract covers; • Italy, Spain, Portugal, The Azores, Greece, Turkey, Kosovo, South of France, Croatia, Slovenia, FYROM, Romania, Bulgaria • Coast line of Mediterranean and Black Seas for ship support (6th fleet AOR) • From Lajes AB to Incirlik AB 3,300 miles By Comparison • Boston to SF •  2,700 miles

  6. CentralisedOrder processing & Customer service AP AP RP RP Southern Europe-Locations • 4 Operational platforms : • ITALY - Forli • FYROM – Gevgelija • SPAIN - Alicante • THE AZORES - Isla Terceira

  7. Southern EuropeOur daily challenges • Geographical coverage: Distance, border crossing issues, EU veterinary laws are not uniformly applied throughout Europe • Customs and EU regulations • All our warehouses are bonded: the goods stored for the US forces have the “in transit” status and cannot enter the EU market (US troops are our only customers) • Full-time presence of Vets and regular customs inspections and different rules in different countries (Italy, Spain, Turkey, etc.) • Small volume adds challenge to attain minimum order quantities imposed by manufacturers • EFS’ order lead-time is 70-75 days, navy ships place their orders 6 days before the RDD, regular customers 2 days

  8. ….and more….. • Iraq and Afghanistan wars have dramatically reduced full time presence of Navy Ships in the Mediterranean and Black Seas • Navy Ships orders are highly unpredictable in terms of timing and volume • Items ordered varies within the same class of ships and the crew on board • The impact of Navy Ships’ orders increased over the course of the contract due to reduced volume from land based customers

  9. …However… • EFS demonstrated capability to quickly adapt to any new challenge • Operation Iraqi Freedom (OIF) • Operation Enduring Freedom (OEF) • Operation Odyssey Dawn (ODD) ONGOING

  10. Navy Ships/Land weekly orders 25K CASES 20K 15K 10K 5K Week #( January 2009-April 2011)

  11. Case StudyOperation Odyssey Dawn OOD : Operation Odyssey Dawn was the U.S. code name for the US part of the international military operation in Libya to enforce United Nations Security Council Resolution 1973 during the initial period of March 2011 and afterwards under NATO command as Operation Unified Protector (OUP).

  12. Case studyOOD FIRST WEEK • March 2nd - DLA requested EFS to bring its inventory in line to support Navy Sales in the area of $7M per month • DLA later revised the amount to $3.5M per month • Following the guideline, EFS placed orders at 3 main suppliers • In the first week, daily conference calls between DLA Troop Support and Ebrex were set in order to arrange for airlifts, as demand requirements due to Operation Odyssey Dawn are well above previous average demand

  13. OOD / OUP Support • Airliftswereorganized and are stillongoing to expeditewarehousereplenishmentin addition to ocean transportation

  14. OOD /OUP Support • Within 48 hours of surge warning from DLA, wedoubledouraverage pipeline in terms of cases/dollar value • To date, overall pipeline isapprox. $15 million • 500 % surge!! Week # Week # Typicallevelprior to OOD DLA surge warning DLA surge warning

  15. OOD /OUP Support February-April 2011

  16. OOD / OUP– Where we are going • Length and level of support is unclear • Required support for Operation Unified Protector could end abruptly and/or be phased out • The above results in a considerable financial risk for the company due to ; • Huge levels of inventory currently carried to support the surge • Shelf lives of the items • US troops being our only outlet

  17. OOD/ Keys for success • Timely communication of headcount/menu changes = reduced number of NIS and expired items • Navy ships orders placed with the longest possible lead-time can guarantee the availability of items with low historical demand • Special communication line for: • Challenges • Contingencies • Ensure that both surge/mobilization and demobilization are equally covered in the contract and support is equally provided

  18. Conclusions • A solid and well supported company • A 10 years proven record of experience • Know-how in a vast and complicated geographical area • Have met and dealt with all diverse and unpredictable arising challenges with exceptional results

  19. THANK YOU

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