2013-2014 Chairman of the Board, ALA

American Logistics Association Chairman’s Update 2014 National Convention Ed Brunot 2013-2014 Chairman of the Board, ALA

American Logistics Association Effective Legitimate Progressive • This year’s Chairman’s Update will be in two parts: • The year in review: Chairman Ed Brunot • “We were prepared for the assault on the benefits!” • The Challenge Ahead: Chairman Joe Campagna • “Moving forward it is strength in numbers!” A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive ALA Mission Promote, Protect and Enhance the military resale and quality of life benefits on behalf of our members and the military community … never before has it had such meaning! A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive The Year in Review: Unprecedented attacks! • The 2013 National Convention kicked off with a government shut-down • The closure and following workforce furloughs sent shock waves through military resale • Cancelled orders and curtailed sales demonstrated the reliance on the supply chain but its fragile nature • Closed commissaries dramatically impacted exchanges and the patron traffic model that supports military resale • The 2015 Administration budget virtually proposed eliminating appropriated support for the commissary. • Without decisive action, the military resale system was set up to fail and three years of ALA strategic preparation was brought to bear. • A Modern Best Practice Trade Association Professionalism In all Association interactions with members, colleagues, customers and the public Responsibility To fiscal programming and execution and accountability for results. Insist on and exercise only the soundest business practices Integrity In communications, representation and relationships. Loyalty to the Association and its members in all business dealings Dedication To improve, adapt, inform and represent. Enthusiastic and informed representation! ExpertiseIn responsible advocacy. Seek to be the single source of truth in business dealings and representation “PRIDE” The values of the Association, when applied to daily business dealings will set the foundation of a modern best practice trade association. This solid foundation, coupled with the compelling goal of improving quality of life, forges a powerful engine for positive change and meaningful results. Professionalism In all Association interactions with members, colleagues, customers and the public Responsibility To fiscal programming and execution and accountability for results. Insist on and exercise only the soundest business practices Integrity In communications, representation and relationships. Loyalty to the Association and its members in all business dealings Dedication To improve, adapt, inform and represent. Enthusiastic and informed representation! ExpertiseIn responsible advocacy. Seek to be the single source of truth in business dealings and representation “PRIDE” The values of the Association, when applied to daily business dealings will set the foundation of a modern best practice trade association. This solid foundation, coupled with the compelling goal of improving quality of life, forges a powerful engine for positive change and meaningful results.

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • ALA Created a Coalition of support : • Leveraged more than 50 partnerships: Military, media, Veterans, Employees • Expanded Advocacy Outreach: reached over 2 million service members through the network of valued associates • Engaged and educated patrons through a social media campaign on the “value of” and the “ threats to” their benefits • The Coalition was established years ago to face this challenge A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • ALA supported key White House Initiatives: • Joining Forces • ALA Member Companies pledged to hire 25,000 veterans and military spouses in 2011 • This ALA commitment was 25% of the White House Goal • The President and First Lady recognized ALA at Langley AFB • ALA was one of the first private sector associations to join this initiative • ALA and military resale was recognized as the largest employer of veterans and military spouses • ALA was recognized by the White House and Congress earlier this year for reaching that goal A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • ALA supported key White House Initiatives: Healthier America • Healthy Base Initiative under DoD leadership is a flagship program of this FLOTUS led initiative • Military Resale Community supporting the HBI initiative • 14 demonstration sites in the pilot program • Military resale recognized as an essential partner in promoting a healthy lifestyle • HBI topic was a major focus issue at the Congressional Caucus and Public Policy Forum • ALA is working closely with DoD to help them realize their goals while protecting the interest of member companies A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • Protecting Military Resale is no accident: • ALA recognized early the emergence of the defense spending cuts and that we needed to stress economics along with compassion and mission support • ALA took immediate action to educate lawmakers and patrons on the impacts of proposed reductions • ALA engaged in the only effective dialogue when dealing with budget discussions: Analysis • ALA established the Military Resale and MWR Center for Research • ALA issued key report: Cost and Benefits of the DoD Resale System • First of its kind report briefed to key congressional leaders, key committee chairs and Pentagon leaders • ALA issued a comprehensive White Paper: The Defense Commissary System, Understanding Commissary Value, Benefits, and Impacts A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • Protecting Military Resale is no accident: • ALA’s planning and decisive action: • Helped Prevent a $1 Billion dollar cut to the DeCA budget • Helped prevent a major disruption and elimination of industry support • Helped prevent dismantling of the commissary benefit • Helped prevent a 30% reduction in exchange revenue- equating to a loss of over $1 billion in sales, and a loss of $200 million in earnings • Helped prevent decreased dividends vital to supporting MWR programs for the military community • Prevented the elimination of critical savings for military families • ALA executed a strategy to protect our member’s revenue streams by proactively defending the military resale system value proposition with Congress, DoD and the patrons A Modern Best Practice Trade Association

American Logistics Association Chairman’s Update 2014 National Convention Joe Campagna 2014-2015 Chairman of the Board, ALA

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • The Challenges will continue • The 4 November mid-term elections could reshape the face of congress and the key leaders we deal with as a system • The current published DoD budget request shows a $600 million dollar reduction in the DeCA budget • The conference deliberations surrounding the yet to be passed defense bills provided an uncertain future • And the elephant in the room is: • Everyone has pushed the hopes for a compensation resolution to the Military Retirement Modernization and Compensation Commission A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • The Challenges will continue • The effective actions over the last several years prove we have the right staff, key initiatives and understanding of the issues in place • The new Board of Directors are proven leaders, strategic thinkers and action oriented • We must continue to deliver our message with increased effectiveness: Content is the King but distribution is the Emperor • There are three things we need to focus on during the upcoming year: • Membership…Membership…Membership A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • How do we enhance the value of Association Membership • Membership Committee will address key issues and seek feedback • How to better leverage meetings • How to leverage our Valued Associates as missionaries • How to utilize the existing member network to educate and recruit • How to engage our councils and our chapters as standing recruitment committees • How to strengthen the business partnership with initiatives like the recent Blue Ribbon Panel • We will aggressively seek member feed back on the good and the bad of current initiatives A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Strategic Planning + Decisive Action = Positive Results • How do we enhance the value of Association Membership • Key Committees will be set up to enhance our portfolio of services and communication tools • ALA Website • Worldwide Directory • Meeting frequency and formats • ALA Executive Briefing • ALA 365 • Chapters and councils • We need to make sure our efforts are clear, issue focused and recognized as best value A Modern Best Practice Trade Association

American Logistics Association Effective Legitimate Progressive Your Business. Your ALA • ALA helps our members succeed: • Only association that understands all aspects of the resale market • Over 90 years as the spokesperson for military resale • Our number one priority is helping ALA members succeed • There is no better way to promote, protect, and enhance your business than by being an ALA Member • Your ALA membership is an investment that protects your business and the military resale channel • Together we Succeed! A Modern Best Practice Trade Association

2013-2014 Chairman of the Board, ALA