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Learning from Wal-Mart
TownHall ^ | 02.24.06 | Edwin J. Feulner

Posted on 02/25/2006 4:37:19 PM PST by Coleus

Anyone who's ever filed a tax return or visited the Department of Motor Vehicles understands that government does two things well: spend our money and waste our time. Unfortunately, both traits were on display during the response to Hurricane Katrina. A House select committee headed by Rep. Tom Davis, R-Va., says the government displayed "fecklessness, flailing and organizational paralysis." The committee report lays out 90 flaws in the Katrina response and notes that all levels of government failed. Oh, plenty of money was going out. Last September, the federal government was spending about $1 billion per day -- and it generated plenty of waste. The Federal Emergency Management Agency handed thousands of checks (for $2,000 each) to charlatans.

FEMA also wasted money on housing. It spent $236 million to rent three cruise ships for evacuees. The ships were never more than half full. And don't forget the manufactured homes, some 10,777 of which are rotting away in Arkansas because FEMA ordered more than it needed. As Sen. Susan Collins, R-Maine, explained, the waste happened because the government took a "pay first, ask questions later" approach. The federal government has promised to fix its problems. Michael Chertoff, secretary of Homeland Security, says he'll deliver "a fully integrated and unified" department before the next hurricane season. Fine. But let's remember, not all answers can be found in Washington.

It would be better to look toward an institution that didn't fail during Katrina: Wal-Mart.

The world's largest retailer had 171 facilities in the path of the storm. But as Jason Jackson, the company's director of business continuity, told a Senate committee, "We were able to recover and reopen 83 percent of our facilities in the Gulf area within six days." One key reason for Wal-Mart's success, Jackson said, is "associates who are dedicated to their communities." That local connection helped it deliver goods when government failed. As Investor's Business Daily reported in September, "While local and federal groups suffered communications problems and bickered over who was in charge, Wal-Mart sprang into action."

And while Chertoff admits Katrina caught the government flat-footed, Wal-Mart is always ready. In his book "The World is Flat," New York Times columnist Thomas Friedman wrote, "The minute Wal-Mart's meteorologists tell headquarters a hurricane is bearing down on Florida, its supply chain automatically adjusts to a hurricane mix in the Florida stores." That means plenty of non-perishable food and critical items such as generators appear in stores even before disaster strikes.

Wal-Mart has plenty to teach the government. "When FEMA or another agency places a blanket order of 100 trailers of water, we often question if the person placing the order really knows what 100 trailers of merchandise looks like," Jackson testified. "Usually the answer to this is that the person making the order was given a dollar amount to spend, and they do not comprehend the size of this order or what it means."

Wal-Mart does what government intervention can't: It drives down prices and makes life better -- in New Orleans and, soon, in Chicago. The company opened a store last month in Evergreen Park (where I was born), after the city council refused to allow it inside the city limits. Some 25,000 people applied for the store's 325 jobs, which suggests Wal-Mart is popular with employees as well as consumers. After Katrina, even Wal-Mart's critics sang its praises. "It's hard to imagine any government program matching the efficiency of a Wal-Mart," wrote consulting firm Lynch Ryan on its Weblog, adding, "Government has a lot to learn from Wal-Mart." Unless we change our approach -- bringing in more private, local expertise and less federal bureaucracy -- we'll be reminded of that the next time disaster strikes.

Dr. Edwin Feulner is president of The Heritage Foundation, a Townhall.com Gold Partner.



TOPICS: Business/Economy; Government; US: Louisiana
KEYWORDS: fema; feulner; katrina; nola; tomdavis; walmart
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To: Coleus
We need to make the government more like Wal-mart. That should make all the liberal jaws drop open in astonishment.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

41 posted on 02/25/2006 8:48:10 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: 4butnomorethan30characters

I don't know about the West Bank but in the Lake Charles area they were open and stocked well before the others after Rita. They still aren't open 24/7 but all of the stores here are open til 10.

One thing to keep in mind is that until the housing issue is addressed then the worker shortage is going to be an issue and it's not just with Walmart. Workers need a place to live. It takes time to recover after a hurricane.

Why is it people think that everything will be back to normal in a few days? With two major storms wiping out a good portion of the state it is simply foolish to think that we can just snap our fingers and everything will be hunky dory.

The article is also making the point that perhaps we shouldn't give FEMA the checkbook because they will waste an inordinate amount of money and provide less services than the private sector could. One other thing, Walmart also utilized their meteorologists to preposition the supplies unlike FEMA and the state.


42 posted on 02/25/2006 8:54:01 PM PST by CajunConservative (Don't Blame Me, I Voted for Jindal.)
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To: Coleus

Walmart is the envy of the retail world, with great selection, arrangement and pricing.

I've given up on main-line retails like JC Penney's and Sears. They're newspaper ad sales are full of exceptions that rip off the consumer big-time, and their (appliance) sales people have no problem lying to your face.

Sorry, I'll take Walmart's straight forward approach any time.


44 posted on 02/25/2006 9:04:45 PM PST by Wiseghy ("You want to break this army? Then break your word to it.")
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To: 4butnomorethan30characters

I lived in Harvey when the first Walmart opened there but that was years ago and I haven't kept up with things there. Like I said Walmart has problems but when it came to the way they handled Katrina and then Rita they did things right and it is okay to say that I like how they did things. Like having ways into the area to get much needed supplies in to the people who needed them.

You can bash Walmart for whatever reason but it doesn't take away from the fact that they were well organized and efficient compared to the government. If your life depends on the actions of say FEMA or the state and local government, maybe they need to look at how Walmart was able to get things done pronto and take notes.


45 posted on 02/25/2006 9:08:53 PM PST by CajunConservative (Don't Blame Me, I Voted for Jindal.)
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To: palmer

Interesting. I didn't know they were doing this!


46 posted on 02/25/2006 9:10:56 PM PST by Jorge
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To: 4butnomorethan30characters

Don't forget the fact that the stores are filthy.

And they take back used underwear and bathing suits.

Blech.


48 posted on 02/25/2006 9:17:21 PM PST by Xenalyte (Make the homeys say HO and the girlies wanna scream!)
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To: Coleus

"Government has a lot to learn from Wal-Mart."

It should read "Residents have a lot to learn from Wal-Mart."


49 posted on 02/25/2006 9:18:13 PM PST by peggybac (Tolerance is the virtue of believing in nothing)
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To: 4butnomorethan30characters

And they take back used underwear and bathing suits.

Nordstrom's does too.


53 posted on 02/25/2006 9:28:20 PM PST by peggybac (Tolerance is the virtue of believing in nothing)
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To: 4butnomorethan30characters
And before anyone starts to ramble about "It's Wal-Mart...they could never go out of business", just look at K-Mart :) No-one would have ever predicted their demise 25 years ago.

KMart retrenched because of Wal-Mart. KMart's inventory is dreadful and their merchandising selection is dull. In addition, Wal-Mart's supply chain and information system is the Rolls-Royce in the retail industry.

The only thing that will stop Wal-Mart is an inability to grow or a competitor.

The barriers to entry for a competitor are extremely high.

54 posted on 02/25/2006 9:32:47 PM PST by sinkspur
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To: 4butnomorethan30characters
But, I can see customer service issues, competition and a major shift in US Trade policies effecting them at some point.

Customer service issues? I can't think of any.

As far as a "shift in US Trade policies," if you're dreaming of the US becoming more protectionist, you can forget it. If anything, we will sign more free trade deals with more nations.

57 posted on 02/25/2006 9:42:37 PM PST by sinkspur
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To: Coleus; 4butnomorethan30characters; Mrs.Nooseman; Diana in Wisconsin; bfree; Graybeard58; CSM; ...

Don't know how I missed this one folks...........but here it is - first response to the article and the bashing starts.....SHEESH.


(let me know if you want on/off this WalMart ping list - which NOT a listing for bshers)


58 posted on 02/25/2006 9:47:20 PM PST by Gabz (Smoke gnatzies: small minds buzzing in you business........SWAT'EM)
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To: Jorge

Wal-Mart used to be dirtier etc. - this was back in Texas.

But the two I've started shopping at recently here in Albuquerque are cleaner than Target for example and have better help. As one person said they will walk you to the item or tell you exactly where something is like in aisle such and such "just past the vacuum cleaners, across from the greeting cards".

Very pleasantly surprised after all the complaining I've heard from people repeating the union talking points.


59 posted on 02/25/2006 9:50:40 PM PST by Let's Roll ( "Congressmen who ... undermine the military ... should be arrested, exiled or hanged" - A. Lincoln)
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