President’s Message

Presidents Message: January, 2018

The best companies, oftentimes the most profitable companies, are distinguished within industry and separated from market segment competitors by their superior supply chains (think Apple, Amazon, Walmart, even McDonalds). What makes their supply chains better is not the size, depth and breadth but the ability to be agile – to be quick to adapt and react (proactively). Just like in boxing or mixed martial arts, timing and precision (being agile) beats size and power. One of the world’s defining industrial giants, General Electric Co., is coming to this same realization.

GE is considering breaking apart its multiple business units resulting from a new strategic assessment in response to sudden collapses in profits. GE sells products as diverse as Aerospace, Medical, Consumer Electronics and connects Manufacturing with Financial Services. The potential GE breakup reflects broader pressures on businesses to adapt faster (being agile) to technological change and competitive threats, making the need for speed (agility) more important than the benefits of scale (size and power).

Scott DeFreitas
President, ISM-NH

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