April 21, 2023 1

BG Thurgood Commander & CEO

A Winning Partnership Team!

Overview

April 21, 2023

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The Pessimist see difficulties in every opportunity.

The Optimist sees opportunity in every difficulty.

Churchill

The Pessimist see difficulties in every opportunity.

The Optimist sees opportunity in every difficulty.

Churchill

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Yesterday

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70% Troops on Base No Wal-Mart 100 Retail Shopping Choices Families an afterthought Fulfillment….”Fish in the Boat”

70% Troops off Base 6 Wal-Mart Stores 1000 Retail Shopping Choices Families at the forefront Marketing…..”Find the Fish”

Today

It’s Not Your Father’s PX Anymore! It’s Not Your Father’s PX Anymore!

1970’s vs 2000’s

It’s Your Exchange!

Fort Hood

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Trends in Retail Trends in RetailChanging marketplace

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Lifestyle Centers

Enhance Quality of Life

Offers Great Collaboration with MWR, DeCA and the Installation

Develop Sense of Place

Support Military Families with increase Dividends

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Our scale can be advantageousOur scale can be advantageous

Thinking about our business models will create new and Thinking about our business models will create new and different opportunitiesdifferent opportunities

SuppliersSuppliers

Customer Visibility Re-Rationalization Full enterprise Integration Dynamic Optimization Automation Supplier Integration New Metrics Functional Optimization

Manual processes Traditional Performance Metrics Continuous Improvement Leverage some synergies

Do Better within Box Buy as “one off” Optimize team function Focus on basics

Do – Better Within Box Improve Regional Box Dynamic EnterpriseIntegration – Remove Box

Functional Local Team Cross -Functional Regional Team Enterprise-wide Collaboration

Collaborative Efforts Will Fundamentally Change the Performance Curve…..Together

The Early Years

The Future Years

The Interim Years

Traditional Ideas35%

Transformational Ideas65%

Our own thinking and functional walls stop us

Source: SC Management Review, Dec 2004

Functional/Processes

Intra-Enterprise

Inter-Enterprise

External Total BusinessSystem

IEnterpriseIntegration

IICorporateExcellence

IIIPartner

Collaboration

IVValue Chain

Collaboration

VFull NetworkConnectivity

New business models needed…a new paradigm

Functional/Processes

Inter-Enterprise

External Total BusinessSystem

Enterprise wide collaboration drives us towards higher levels of value add activities

I

EnterpriseIntegration

IICorporateExcellence

IIIPartner

Collaboration

IVValue Chain

Collaboration

VFull NetworkConnectivity

Source: SC Management Review, Dec 2004

This is a BIG IDEA!!!

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At The End of The Day

LEADERS MAKE A DIFFERENCE

Supply Chain Objective: Partner across the supply chain to

lower costs by increasing volume or gaining process efficiencies.

Current or Potential Partners: NEXCOM, MCX, Army MWR, Air Force Services, DECA.

Gift Cards Objective: Improve Customer Service by

cross accepting gift cards. Current or Potential Partners: NEXCOM,

MCX and DECA. Completed w/ NEXCOM & MCX in Nov 07

Enterprise Architecture Objective: Conduct baseline analysis of the

operation, technical and systems architectures, to develop a road map for future operations.

Current or Potential Partners: NEXCOM and MCX.

Indirect Procurement Objective: Leverage combined spend on

commodity items to lower costs. Current or Potential Partners: NEXCOM,

MCX, Army MWR, Air Force Services.

Cooperative EffortsCooperative Efforts

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Going Green Initiatives

Energy Savings Products

Reusable Bags

Waste Stream Review

Food Energy Management Systems

New Vending Machines

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Collaborative Efforts

“Bringing the Benefit To You” initiative 43 off-site Joint Reserve and National

Guard events projected in 2008

AAFES Commodity and Region support

Bi-Annual DeCA Truck Load Events

Everyday in small ways at the local level….THANKS!

A Winning Partnership Team!

At the End of The Day…..

Leaders Make A Difference

We all make choices….We all leave a legacy

GREATNESSGREATNESS

MEDIOCRITYMEDIOCRITY

We Are Here!!!

Two roads diverged in a wood. And I, I took the one less traveled by. And that has made all the difference.Frost

Where We Are

Going!!

The small rudder that turns the big rudder that turns the ship

Trim Tab Leadership…..You Make the Difference

On the wall of the basement of the United States Capital in On the wall of the basement of the United States Capital in Washington, a base-relief depicts a Greek warrior engaged in moral Washington, a base-relief depicts a Greek warrior engaged in moral combat with a snake. The artist captures the moment when the combat with a snake. The artist captures the moment when the man raises his sword to strike the deathblow. Across the tableau is man raises his sword to strike the deathblow. Across the tableau is one word: Courageone word: Courage

Artistically, physical courage is easy to depict. Moral courage is Artistically, physical courage is easy to depict. Moral courage is another matter. Moral courage requires a taking a cold, hard look another matter. Moral courage requires a taking a cold, hard look at the world and then acting, accepting the consequences, and at the world and then acting, accepting the consequences, and knowing that the greatest good will ultimately be served. Moral knowing that the greatest good will ultimately be served. Moral courage demands sacrifice, the subordination self-interest to the courage demands sacrifice, the subordination self-interest to the interests of others. To be morally or intellectually courageous requiresinterests of others. To be morally or intellectually courageous requires a basic sense of honesty and integrity coupled with the will to act a basic sense of honesty and integrity coupled with the will to act decisively on those principles. Moral character is of great matter in decisively on those principles. Moral character is of great matter in a leader and will inevitably affect the substance of his performance. a leader and will inevitably affect the substance of his performance.

Courage, character, and performance cannot be separated.Courage, character, and performance cannot be separated.

CHARACTER + RESULTS = EFFECTIVE LEADERSHIPCHARACTER + RESULTS = EFFECTIVE LEADERSHIP

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Delighting Our Customers…

…Improving Their Benefits