GE Supply Logistics Replaces Questron Name

John Wolz

�We are making a commitment to be a player in the fastener industry,� the new president and general manager of GE Supply Logistics LLC declared.
Jason Jones assumed the reins of the former Questron Technologies business upon the GE Supply acquisition of the bankrupt fastener distributor�s assets. GE Supply had won a court-approved auction in April.
Though GE Supply is traditionally known for its electrical industry base, GE Supply Logistics will continue to expand in fasteners and hardware-related products, Jones commented.\
GE Supply was interested in Questron�s �go to market strategy,� Jones explained.
The asset acquisition was �recognition of an opportunity to gain share in fastener sales� even though it is �outside of our core industries,� Jones acknowledged.
Though GE hadn�t been a fastener distributor before the Questron asset purchase, Jones estimated that �the collective GE portfolio� uses between $200 million and $250 million worth of fasteners annually.
Jones, who holds a bachelor�s degree in industrial engineering from Texas A&M University, began his GE career in distribution management and was on the GE corporate audit staff. He most recently led GE Supply�s distribution operation.
In an interview with FIN, Jones said GE Supply is �excited about the former Questron business platform� and looking forward to �the next generation of growth� from their ILM platform, well-defined databases and applied technology.
Under the $2.5 billion GE Supply, Jones hopes to continue Question�s creativity and back it with investment dollars.
Adding Questron�s assets complements �our already expanding value proposition in terms of fulfilling customer requirements. Utilizing their integrated logistics management programs for small commodity parts and GE Supply�s expertise as an international electrical distributor, GE Supply Logistics will be able to deliver new levels of service. The combined organizations will also benefit from a natural synergy between our mutual customer bases,� Jones remarked.
GE Supply Logistics customers include aerospace, commercial and industrial users and OEMs, Jones noted.
GE Supply, headed by president and CEO Bill Meddaugh, has national sales and tech centers, 24/7 Internet ordering, hub & spoke distribution facilities and 24-hour emergency service.
Headquartered in Shelton, CT, GE Supply has 4.5 million sq ft of warehouse space, 150 branch offices and five distribution hubs in the U.S., Mexico, South America, Ireland, the Middle East and Southeast Asia.
In the interview Jones said:
� GE Supply is headed into the fastener distribution business beyond supplying only General Electric businesses.
�We are a distributor pure and simple,� Jones declared. �We have no interest in manufacturing.�
�We do service GE power systems, medical and aircraft plants, but we are not designed to be an exclusive source. All transactions are on an arm�s-length basis.�

� The Boca Raton, FL-headquarters will be closed, and GE Supply will open a new GE Supply Logistics headquarters operation near the Dallas/Fort Worth airport. GE Supply Logistics has about 35 former Questron locations in the U.S.

� The asset acquisition gives GE the right to use all Questron trade names.

� Jones expects most of the 400 Questron employees will want to stay. �A lot of people want to work for GE,� he observed. �We are an attractive employer. In addition to corporate benefits, Jones emphasized GE�s reputation, �demonstrated integrity, plus the terrific leadership development.�
GE issued its �The Spirit & the Letter� guide to GE policies to all the new employees to �help GE employees understand the GE commitment to unyielding integrity and the standards of business conduct that all GE employees must meet.�
Former Questron CEO Dominic Polimeni and president Bob Gubitosi did not come to GE Supply Logistics. Jones is talking with other members of the Questron core leadership team about staying on with the new ownership.

� �We don�t have any plans at this point to make additional acquisitions. We plan to grow organically,� Jones said of GE Supply Logistics� future.

� GE Supply Logistics LLC will operate as an autonomous GE Supply business unit, with a full profit-and-loss statement.

� Though suppliers and customers were leery of doing business with Questron upon the bankruptcy, Jones is hopeful that GE Supply Logistics will reassure them. �They should feel good about our financial strength,� he explained.
General Electric�s corporate revenue totaled $129.9 billion in 2001.

� Jones said GE Supply Logistics has not determined what role it will play in the fastener industry. Some large distributors, such as Fastenal, have almost no industry involvement. But executives of the former Questron had been active in the National Fastener Distributors Association and other industry associations.
Speaking on a cell phone while driving from Dallas to the former Questron branch in Tyler, TX, Jones said he is traveling nonstop to meet key staff people and �get out in front of customers.�
Jones said he was �not averaging much sleep� in the process.
GE Supply Logistics will provide supply chain management and inventory logistics through two operating units: GE Supply Logistics and GE Supply Aerospace Logistics.
GE Supply is the electrical products distribution business of Shelton, CT-based General Electric Company.
GE acquired Questron�s assets �free and clear of all liens, claims and encumbrances,� according to a company statement, but �assumed a few, limited obligations of Questron; the Questron creditors holding these obligations have been so advised.� GE �has no responsibility or liability for any Questron indebtedness or obligations.�
Questron began as Quest Electronic Hardware, the fastener division of Arrow Electronics where Polimeni was once corporate counsel. Starting in 1997, Questron acquired Integrated Material Systems Inc.
After filing for bankruptcy Questron was briefly held by QTI Acquisition Corp. �2002 FastenerNews.com