Comments

I think that Walmart should set up a division that just sells it's logistics capabilities to governments and NGOs who need to deliver aid or products where natural disasters have occured.

Given the state of the earth today, and the way powers that be continue to ignore environmental issues, that division may actually turn a profit.

The TPG group in the Netherlands already does work like this in Africa. Very good for their image as a caring company, and builds up competences as well

That's what I call a win-win-win situation. The NGO or Government, the affected people and the company - all profit from such work.

What do you guys think?

Posted by Arun Sadhashivan at September 12, 2005 10:56 AM

Yes, you are right. Wal-Mart and other Supply Chain geniuses have got all the infrastructure and capability to reach the right things to the right places at the right time. Especially if you compare with any bureaucracy, including the good old government.

Posted by Mandar at September 12, 2005 12:16 PM

Katrina proved to be more of just a natural disaster. It proved a gross Incompentence at the .gov level.

I think "Mr.John Wayne" with boots on the ground said its best. "Logistics is the key to sustain Disaster recovery effforts" - or something like that.

Arun: the NGO and .gov will not adhere and invest at the right time ,in the right place and for the right event. They are a bunch of lunatics that belive that "terrorism" is "out there" and its their job to prevent it. Thats their personal mission and mandate and bugger the poor american citizen !!

Posted by /pd at September 12, 2005 12:20 PM

Thanks Tom and Arun - terrific post / ideas - and for some reason I'm more loyal to Wal*Mart now - even though Geraldo may not like it!

Posted by Sean at September 12, 2005 12:20 PM

Whatever concerns about the impact of Walmart on overall markets, I can admire their distribution and logistics capability. FedEx has similar abilities to put things on the ground very rapidly. Perhaps these two companies as well as others would be willing to contribute some of their expertise when response plans are refined in the future? Perhaps this is an outsourcing opportunity that government could give to private industry. Look at what FedEx has done with the Post Office.

Posted by walter white at September 12, 2005 12:50 PM

/pd - what you're writing goes along with one of the most famous sayings of one of our greatest presidents: "Government is not the solution to the problem, government IS the problem." (Ronald Reagan)

Katrina + New Orleans is not the only proof of that maxim, just the most blatant. Billions of $ had been allocated to fix the levees to Category 5, and it was mismanaged Louisiana-politics style. New Orleans put a disaster plan in place, and its city leaders conveniently forgot about it when crunch time hit. The mayor shrugged instead of ordering evacuation, until it was too late. School buses that could have hauled out the elderly and poorest were flooded. Bush prodded the state's governor to declare a state of emergency so the Feds could get involved, she said "give me 24 hours to think about it" - and then the levees broke. Several congress people played the race card instead of getting involved in relief efforts. Yep, our public servants in action - or is it inaction?

I'm all for Wal-Mart putting their logistics in place where necessary for natural disasters. And to do it on their own, without waiting for a government contract, because that will never come.

And I refuse to be a Wal-Mart basher!

Posted by Ron at September 12, 2005 1:06 PM

Why don't we just make Wal-Mart our government?

Posted by mike atkinson at September 12, 2005 1:24 PM

If Sam Walton were still around, I'd be all for it.

Posted by Noel Guinane at September 12, 2005 3:23 PM

Thanks tons for your post Tom.
What a fantastic point / story.
Maybe this can be a new addition to Aesop's fables.

Walmart, UPS, and Dell,
and their peers
could all act as consultants to the Feds
for honing their logistics skills
(do they even have any?).
It comes down to improving communications,
rapid implementation,
frequent re-assessment,
a little bit of “the beginner’s mind,”
and truly caring about what you do.
(Is “apathy-ectomy” a word?)

Posted by Jerry Brown at September 12, 2005 4:38 PM

And, don't forget FedEx! Somehow all these companies (and other companies and individuals) were able to step up and make a real difference. All comes back to the "boring but important" stuff. One reason Eisenhower was such a great WWII leader - and D-day was a success - was superb logistics planning (and, they did it without computers or cell phones!) I'd recommend FEMA and Homeland Security bring in some expert disaster prevention and recovery specialists from the IT world to do some fundamentals...and then ensure their managers and leaders are experienced (like the gentlemen who have now taken over the FEMA Katrina work). Finger pointing blather? No. Accountability and Lessons Learned? A resounding Yes.

Posted by Mary Schmidt at September 12, 2005 8:58 PM

I'd have to agree with all, wondering if/when that $20 million did any more good then much greater amounts spent by government agencies, and if it was/did actually get to where it was needed.

Of course, that's all an unknown. Great PR anyway, and cheap, as all that stuff was not going to be sold until their stores re-opened anyway.

So yes, thank you Wal-Mart - but Comedy Central ran their South Park spoof on Wal-Mart last night, and that set me straight again. It was simply a good business decision - nothing more.

Wal-Mart run the country? God help us all. Then again could it be any worse than what we have now?

Oh, logistics skills are pretty much useless - without logistics. Now if Wal-Mart trucks could fly and hover, I'd agree in full.

Until then, I've been Wal-Mart feel for six plus months now. It's a 12 Step Program! I sleep well.

Posted by Dave at September 12, 2005 9:50 PM

Very good post. I agree with Arun. I personally feel that disaster management is highly dependent on accurate information collection and interpretation. Disaster managers must therefore be familiar with how to collect, structure, and evaluate information in emergency situations. I believe this is done by establishing an information management system. Also, every disaster manager eventually becomes involved in logistics. Therefore, he or she must be familiar with basic logistics planning, inventory management, warehousing and stock control procedures, materials distribution methods, and accounting procedures.

Aerial Photography is extremely important in assessment of disaster. If used wisely is a valuable tool for disaster managers and can be an expensive tool if misused. Disaster managers must know how to interpret aerial photography and how to apply it to both pre-disaster planning and post-disaster response activities. The use of remote sensing in disaster management is increasing. Remote sensing is the acquisition of information about a subject that is at a distance from an information-gathering device.

Lastly. an effective disaster manager must above all know how to communicate, what to communicate, and with whom to communicate, using the different technologies available. A disaster manager must be familiar with communications equipment and their limitations. He or she must understand the effective use of communications networks both prior to and in the aftermath of a disaster.

Posted by K.Sriram at September 12, 2005 10:07 PM

I know WalMart feels it needs all the positive PR it can buy,,,,,,especially as more and more folks are realizing just what a disastrous effect they are having on the US economy. Think this makes up for their driving prices so low through the use of slave labor that it runs ALL competition out of town...and FORCES the use of illegal aliens? Somehow I doubt it. Think it makes up for their union busting, use of underage workers after hours, unbelievably terrible 'benefits' which place the cost for their profits on the American taxpayer as most of their employees are on multiple forms of government 'assistance' (look it up)...ohh heck the list is endless.
No, it doesn't. Have to say I really get a kick out of the kool-aid drinking 'free traders' who think WalMart is the epitome of capitalism.
Boycott WalMart

Posted by Gerry L at September 13, 2005 5:27 AM

Gerry, you're free to boycott Walmart or any other business. That some of us choose not to join your crusade does not make us "kool-aid drinking 'free traders'". It just means we disagree.

Posted by Noel Guinane at September 13, 2005 6:32 AM

I believe the main reason of Wall*Mart's success in this mission was it's every day training. If government would have such practice in SCM it wouldn't have failed. Wall*Mart DOES it every day, every minute... Whereas the government mainly relays on theoretical basis "what-if" scenarios without testing.

I would not be suprised to find out that CIA uses Google for pre-project information gathering...

Posted by mantautas at September 13, 2005 9:29 AM

Mantautas makes a good point. Often why the military is terrific in these cases: supply chain experts (just try to manage food/water for 500,000 people every day when you have to bring in 99% of it) as well as a disciplined comand,control & communications process.

The President's Management Agenda states that 50% of work done by federal workers is work readily done and available in the private sector; and at less cost.

viagra 50 mg drug prices

I wonder what processes that are critical to disaster relief are readily available in the private sector (logistics is obviously one and done as a service for large corporations by the likes of UPS and FedEX every day)?

Posted by Jeff at September 13, 2005 11:37 AM

Jeff - you'll get your answer over the next year, when individuals and businesses (yes, Gerry, including Wal-Mart) go to work rebuilding this part of the Gulf Coast and making it prosper again, while the bureaucrats and politicians form committees and waste billion$ designing a new Category 3 levee and ignoring Biloxi and pontificating on how George Bush directed the hurricane to murder the black people of New Orleans.

Posted by Ron at September 13, 2005 2:41 PM

Oh yes Kudos:

LOS ANGELES (Reuters) - Workers in six countries filed a class-action lawsuit against Wal-Mart Stores Inc. on Tuesday, claiming the world's largest retailer overlooks sweatshop conditions at toy and clothing factories from China to Nicaragua.

The suit, filed in California state court in Los Angeles, lists as plaintiffs 15 workers in Bangladesh, Swaziland, Indonesia, China and Nicaragua. They claim they were paid below minimum wage, forced to work unpaid overtime and in some cases even endured beatings by supervisors.

The lawsuit also lists four California plaintiffs, including two unionized workers at Kroger Co. unit Ralph's and Safeway Inc. grocery stores, who claim Wal-Mart's entry into Southern California forced their employers to reduce pay and benefits.

The suit could cover anywhere from 100,000 to 500,000 workers, according to attorney Terry Collingsworth of the International Labor Rights Fund, which represents the plaintiffs. Wal-Mart's potential liability could be in the hundreds of millions of dollars, he said.

Beth Keck, a spokeswoman for Wal-Mart's international operations, said the retailer had not been formally served with the lawsuit, but had received a copy from journalists who obtained it from the lawyers involved.

"It's really too early for us to be able to say anything about this particular complaint," Keck said. "It involves a number of companies and manufacturers and we're just beginning our research to learn more. We're just at that beginning research phase."

ALWAYS LOW PRICES

Wal-Mart became the world's largest retailer by buying cheap, foreign-made goods and selling them to consumers at rock-bottom prices every day. canadian pharmacy for viagra

Critics, however, say that low-price obsession has pressured store managers to overwork nonunion employees and the retailer has been hit with dozens of lawsuits claiming violations of wage-and-hour laws.

The company has also been the target of discrimination lawsuits. Last year, a judge said a lawsuit that charges the company discriminated against women in pay, promotions and training could proceed as a class action. That suit, the largest workplace bias lawsuit in U.S. history, covers as many as 1.6 million current and former female U.S. employees.

The mounting litigation has taken a toll on Wal-Mart's reputation and the Bentonville, Arkansas-based company has responded with a national advertising campaign aimed at repairing the image of its 5,100-store empire.

According to Tuesday's complaint, Wal-Mart breached its own agreement with foreign suppliers in its failure to monitor factory working conditions.

"Investigation after investigation of Wal-Mart's operations and suppliers reveal that Wal-Mart is an unrepentant and recidivist violator of human rights," the lawsuit said.

The plaintiffs allege Wal-Mart's "vast economic power" allows it to impose price and time requirements on supplier factories that result in sweatshop conditions.

The retailer "knew or reasonably should have known that its suppliers would violate" worker's rights, but continues to do business with those factories, the lawsuit said.

Wal-Mart's Keck declined to comment on the company's factory policies because of the pending lawsuit. In a statement on its Web site regarding sweatshop allegations -- though not specifically this lawsuit -- Wal-Mart said it "strives to do business only with factories run legally and ethically" and that it "is helping to improve working conditions and create economic opportunity for workers around the world."

Violations alleged to have occurred in Wal-Mart supplier factories include withheld pay, poor working conditions, reprisal firings for labor union activity and beatings.

In a Bangladeshi dress factory, a pregnant seamstress who paused on the production line was "kicked hard in her stomach" by her supervisor, according to the lawsuit. Another was slapped in the face with pants whenever she was unable to meet a quota of 120 pairs per hour.

In Indonesia, one worker in a facility producing "George" label clothing for Wal-Mart regularly saw company representatives visit the factory and overheard her supervisor saying "with Wal-Mart, we cannot have overtime (pay)."

The foreign plaintiffs are seeking a jury trial, compensatory damages and injunctive relief. Lawyers for the workers said their clients could not seek redress in their home countries because of corruption, the lack of independent judiciaries and for fear of reprisals.

Posted by ron at September 13, 2005 9:18 PM

The article above was censored by tp.com.

viagra from canada

Posted by Noel Guinane at September 16, 2005 11:35 AM