Alexandra, Virginia - Agility, a global logistics leader, was awarded a tender by the Army and Air Force Exchange Service (AAFES) - a government agency within the Department of Defense. AAFES operates retail stores, restaurants, movie theaters, gas stations, and other businesses on military installations around the globe. The competitive commercial services business will open a new supply chain route through Jordan to service AAFES retail centers in Western Iraq.

Agility will provide an integrated supply chain solution for the clearance and transportation of general department store merchandise destined for AAFES customers in Iraq by utilizing its operations in Jordan. Headquartered in Dallas, Texas, AAFES is a joint-service military organization serving soldiers and sailors that offers brand-name retail merchandise to active and retired military personnel and their families. With more than $9 billion in annual revenues, AAFES operates as one of the world’s top 40 largest retail companies.

In order to help AAFES find operational efficiencies while ensuring the highest levels of service quality, Agility will integrate best practices from its award-winning Retail Center of Excellence and Defense & Government Services (DGS) operations. AAFES will have the benefit of Agility’s experience in supporting world-class commercial retailers, optimized for use in a military environment.

AAFES retail operations in Iraq are currently being serviced by a distribution operation in Germany. This has historically left the retail sites in Western Iraq with minimal accessibility and the hardest challenges for re-supply. By partnering with Agility to open a new supply route through Jordan, these Western Iraq sites will realize major improvements in re-supply for the first time.

"As a leader in global retail supply chain services, Agility has the expertise to create customized logistics solutions to meet the unique needs of our retail customers," said Rosa Hakala, Senior Vice President of Agility Retail Group. "For AAFES, Agility is building a worldwide performance-based logistics (PBL) solution combining our global supply chain infrastructure with a deep knowledge of commercial retail and defense customers’ needs."

Agility’s role in helping AAFES save operational costs directly benefits U.S. service members, as AAFES returns the overwhelming majority of its earnings—more than $240 million in 2005—to funding the military’s Morale, Welfare and Recreation (MWR) programs.

"By working with AAFES to streamline the supply chain for general department store merchandise, Agility is helping to advance the efficiency of product delivery while improving the quality of life for today’s soldiers and sailors around the globe," said Maj. Gen. Dan Mongeon, USA (Ret), President of Agility DGS – U.S.

The AAFES contract award follows other significant wins by the Agility Retail Center of Excellence and DGS. The two business units have secured recent contracts with key retail and defense market customers including, Timex, Daimler Chrysler, and the U.S. Air Force.