Named ‘lead logistics provider’ for $8.9 billion military retailer
Global supply chain leader APL Logistics has been awarded the international import logistics and freight transportation business of the $8.9 billion Army & Air Force Exchange Service (AAFES).
Under terms of the deal, APL Logistics will serve as lead logistics provider for the 111-year-old military exchange. It will oversee consolidation/vendor management, air freight, ocean transport, Customs brokerage and in-transit visibility services. AAFES ships about 3,500 feus (forty-foot equivalent units) of ocean cargo and 1.27 million kilograms of air freight annually under the contract managed by APL Logistics.
The milestone arrangement caps a 12-year partnership between APL Logistics and AAFES and marks one of the supply chain manager’s largest-ever military logistics deals. ‘This is an important development for us,’ said APL Logistics President Brian Lutt. ‘Not only does it provide us with significant new business, it underscores the strength of our relationship with a critical customer.’
With facilities in 30 countries, the 45,000-employee AAFES is a joint military activity providing merchandise and services to active duty, guard and reserve members, military retirees and their families at low prices. AAFES returns earnings to the Army and Air Force to improve troops’ quality of life and to provide a dividend to support MWR (Morale, Welfare and Recreation) programs. AAFES operates 147 retail stores and more than 2,000 fast food restaurants worldwide.
Until recently AAFES relied on a collection of carriers and supply chain companies to handle transportation and import logistics. But under the new contract, it consolidates that responsibility with APL Logistics.
APL Logistics said it will deploy new technology at the exchange as it automates AAFES purchase order data for the first time and installs SeeChange, the company’s supply chain visibility and exception management system.