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February 5, 2019
Military Resale Community Solidifies Joint Buying Alliance with MOU
The military resale community has signed a memorandum of understanding to establish a joint buying alliance expected to provide even greater savings for authorized exchange and commissary shoppers.
“The establishment of a Joint Buying Alliance is an outgrowth of numerous cooperative efforts among the exchanges and commissaries,” said Capt. Bruce C. Brown, Commanding Officer of the Coast Guard Community Services Command.
On Jan. 31, the chief executive officers for the Army & Air Force Exchange Service (AAFES), Navy Exchange Service Command (NEXCOM), Marine Corps Community Services (MCX), Coast Guard Exchange (CGX) and Defense Commissary Agency (DeCA) signed the agreement that provides guidelines for a purchasing alliance involving retail merchandise and any other items sold by two or more of the organizations.
“Efforts including the MILITARY STAR card, private-label products through the Exchange Select brand and now our joint buying alliance are key to lowering overhead costs and maximizing savings,” said Tom Shull, AAFES Director/CEO.
The joint buying alliance will share common data and the cost of goods by maximizing combined buying power. Key retail areas that will kick off the purchasing alliance include electronics and health and beauty.
“The military resale organizations have had a long history of collaborative efforts on various businesses and customer initiatives, retired Rear Adm. Robert J. Bianchi, dual-hatted as the CEO of NEXCOM and the DOD Special Assistant for Commissary Operations. “The joint buying alliance represents the next phase of increased collaboration among NEX, DeCA, CGX, MCX and AAFES.”
Common ownership by the Department of Defense and Department of Homeland Security combined with separate organizational structures allows each entity to compare terms prior to signing a contract. This structure ensures Coast Guard members, Marines, Sailors, Airmen and Soldiers always receive the best possible price when shopping on a military installation or online at ShopMyExchange.com, MyNavyExchange.com or ShopCGX.com.
“Collaboration is key to improvement,” said Marine Corps Business and Support Services Division Director/CEO Cindy Whitman Lacy. “If a cooperative effort makes sense from a business perspective, the exchanges and commissaries are quick to partner to strengthen the benefit for those we are honored to serve.”
About NEXCOM
The Navy Exchange Service Command (NEXCOM) oversees 100 Navy Exchange (NEX) facilities and nearly 300 stores worldwide, 39 Navy Lodges, the Ships Store Program, the Uniform Program Management Office, the Navy Clothing and Textile Research Facility and the Telecommunications Program Office. NEXCOM's parent command is the Naval Supply Systems Command. NEXCOM’s mission is to provide authorized customers quality goods and services at a savings and to support Navy quality of life programs for active duty military, retirees, reservists and their families. NEXs and Navy Lodges operate primarily as a non-appropriated fund (NAF) business instrumentality. NEX revenues generated are used to support Navy Morale, Welfare, and Recreation (MWR) programs. In FY15, $2.5 billion in sales were generated with $22.3 million in dividends provided to Navy MWR programs.
