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LESSONS FROM KATRINA ON DISASTER PREPAREDNESS

CHICAGO - Industry leaders attending last week's Food Marketing Institute show here shared what lessons they could from the destruction caused by Hurricane Katrina."The one word to describe the situation in New Orleans [immediately following Hurricane Katrina] was 'helplessness,'" Jay Campbell, president and chief executive officer of Associated Grocers, Baton Rouge, La., said during the FMI Speaks

CHICAGO - Industry leaders attending last week's Food Marketing Institute show here shared what lessons they could from the destruction caused by Hurricane Katrina.

"The one word to describe the situation in New Orleans [immediately following Hurricane Katrina] was 'helplessness,'" Jay Campbell, president and chief executive officer of Associated Grocers, Baton Rouge, La., said during the FMI Speaks session on the state of the industry.

Because cell phones did not work during this time, it was almost impossible to communicate with family and friends to see how they were or to let employees know the conditions of the stores in which they worked, he said.

"Obviously there's been a lot of progress [made] in the Deep South in the recovery process, but we still have a long, long road ahead of us," Campbell said.

In a session titled "Preparedness, Survival, Recovery - The Katrina Project," William A. Alford, president, International Lighthouse Group, a risk management firm in Charlotte, N.C., outlined eight major disaster guidelines, based on his investigation of retailers' experiences during the disaster.

Heading up the list was the recommendation that retailers "establish reciprocal agreements with government and private relief agencies," Alford said. He related that retailers seeking to provide truckloads of food or medicine were often turned away by government-mandated roadblocks, due to lack of communication. "State and local emergency management agencies can help you come up with a plan, tell you which roads are closed, and help you locate fuel and other resources."

In his presentation, Campbell noted that "the federal government has all the best intentions, but they often lack the authority or knowledge about the area. We found the government came in and tried to dictate, and while it has the economic resources to call on outside contractors, it's the local authorities that know the people and the roads, where the needs are and how to deliver them."

"Communicating with workforce" was Alford's second lesson. "Even a wooden sign with a painted-on phone number helped some employers get in touch with workers," he said. Call centers and websites are also important resources, he said.

This communication is important to meet the financial needs of employees, Alford said. "People needed cash fast, not checks and not debit cards - over 100 banks are still closed - and there was an issue on how to safely transport that money," he said.

Campbell noted that with the destruction of 266,000 homes in Louisiana and Mississippi - only slightly less than the number of residences there are in Washington, D.C., he said - "displaced people are still displaced, trying to recover their lives and their careers and to get their income going."

Alford's other lessons included:

Diminished workforce: This includes competing for employees against rebuilding businesses such as mold removal and construction.

Communications: Text messaging and two-way pagers were the most reliable communications devices during the disaster.

Review of insurance coverage: Property and business interruption insurance plans do not include flood coverage.

Recording and documenting damage: Cameras, solar calculators and insurance claims forms should be included in disaster preparedness kits to expedite returns.

"All of this can be achieved if a cross-functional team is put in place to ensure emergency preparedness systems are put in place and tested frequently," Alford suggested.

Validating many of Alford's findings, Campbell said, "Several of our members want to get back into business, but insurance coverage is still an issue. And even if they could reopen, most of their employees no longer live there, and most of their customers no longer live there, so it's a conundrum."

According to Campbell, the lesson to be learned from Hurricane Katrina is to be vigilant. "The best way to prepare is to keep permanent records of everything in your home and your business for insurance purposes," he said.