▪ Marketing. There are a few variations on the theme of
generalist versus specialist. Companies can elect to be functional specialists, industry specialists, or geographic specialists. Similarly, one might decide to be a generalist in dimensions of functionality, industry, or geography.
A generalist strategy can usually be publicized for positive
effect. A specialist strategy might be impressive within a
selected community of prospects, but could lose business
opportunities outside that targeted circle.
In other cases, companies could decide to concentrate on
handling a few large customers (and handling them
extremely well). The downside is that any customer loss
would, by definition, be a major loss. Those companies that
limit reliance on one or a few major customers can spread
their risks, but could be eliminating sizable upside potential
for new business with a larger customer.
▪ Resilience. Although not ultimate corporate strategies,
there are sub-strategies—or policies—that are essential to
long-term success in consistent strategic execution. We
began to classify them as “resilience” following Yossi Sheffi’s
work in The Resilient Enterprise. Sometimes referred to as
“contingency plans,” they are more robust, comprehensive,
and imaginative than old-school contingency planning.
This area is often neglected because of our incurable opti-
mism—taxes may be certain, but death is optional in the
view of most North American executives. Examples include
restrictions on the number of managers who can travel
together, the value of inventory in any one location, over-
dependence on a single customer, and alternative sources of
supply for key products, components, and materials.
THERE’S MORE …
Some organizations deliberately use one business component to advance the interests of another. These strategic
decisions are generally confidential because they imply second-class status for the immediate business unit—and
could easily turn potential customers away.
For example, some logistics service providers might want
to use brick and mortar facilities to support their real estate
interests. Others might use distribution operations as a
foundation for supporting transportation assets.
There’s absolutely nothing wrong with these kinds of
optimization efforts, but they can impact the judgments of
potential customers.
Other sub-strategies ought to be widely publicized:
▪ Commitment to the acquisition, retention, and development of talented staff
▪ Authentic inclusion of differently-abled individuals in
the work force
With you when
your business is gearing up
When business picks up, you may need more working capital. The
Transportation Services team at Wells Fargo Capital Finance can help you
increase cash flow with customized, competitively priced accounts receivable
financing. We have a team dedicated to your industry, and the right tools to
help your business thrive. Contact us today to learn how we can help.
Wells Fargo Capital Finance
Jeffrey Duclow • 972-387-6515 • jeffrey.e.duclow@wellsfargo.com
wellsfargocapitalfinance.com/dcvelocity
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