In the rapidly evolving world of wireless accessories, Xentris Wireless has emerged as a key player, consistently adapting its business model to meet the dynamic demands of its clients. Serving major retailers like Best Buy and providers such as Verizon, Xentris Wireless has transitioned from a product-centric approach to a comprehensive solutions provider since its inception in 2003. This evolution highlights their commitment to not just keeping pace, but leading the charge in the wireless accessories market.
Xentris Wireless’s suite of services is broadly categorized into three core areas, each designed to offer clients a holistic approach to the wireless accessories market. Firstly, product development remains a cornerstone of their operations. At their expansive 132,000-square-foot facility in Addison, Illinois, Xentris manufactures cutting-edge gadgets, demonstrating their continued investment in innovation and quality production. This in-house capability allows them to maintain tight control over product standards and adapt swiftly to market trends.
Secondly, Xentris provides comprehensive marketing services tailored to amplify their clients’ product reach and impact. This includes everything from creating compelling product launch materials and strategic store plan-o-grams to designing effective sales sheets and broader marketing collateral. Crucially, Xentris also assists customers in developing impactful packaging designs that are not only visually appealing for displays but are also engineered to drive sales. This integrated marketing support ensures that products are not only well-made but also effectively positioned in the market.
The third critical area of Xentris’s solutions is logistics, which President and CEO Bill Christy emphasizes as a vital component of their offering. “We are equipped to handle the packaging and most of the distribution,” Christy explains. This logistical prowess has become increasingly important as distribution practices have shifted dramatically in recent years. The traditional warehousing model is becoming less common, with many of Xentris’s clients now preferring to ship directly from foreign manufacturers, leveraging Xentris for packaging and final-mile logistics.
This shift means Xentris is adept at managing complex distribution networks. Instead of large bulk shipments to central distribution centers, the trend is towards smaller, more frequent shipments to individual store locations. “Our customers increasingly don’t want to warehouse the products themselves,” Christy notes. “In addition, rather than shipping 100,000 widgets to Best Buy’s distribution center, we’re now shipping 25 widgets each to 4,000 store locations.” This granular approach requires sophisticated logistical capabilities, which Xentris has honed to meet current market demands.
Adapting to Distribution Changes with ERP System
While the total volume of products Xentris ships may remain consistent, the complexity of distribution has significantly increased. For example, even with a major client like Best Buy, the process now involves packaging products to specific coding requirements and dispatching them to thousands of different addresses. This heightened complexity placed a strain on Xentris’s operations and its 54 full-time employees.
To proactively manage these evolving demands and maintain operational efficiency, Xentris invested $1 million in implementing a new Enterprise Resource Planning (ERP) system in 2010. The Epicor system was chosen to streamline operations and free up employees to focus on their core competencies, such as product development and strategic initiatives, rather than being bogged down by increasingly complex logistical processes.
“There were a lot of secret handshakes; one group didn’t know what the other had to do to make things happen, but everyone here is incredibly dedicated to their jobs and the success of the company, so they did it,” Christy recounts, highlighting the initial operational challenges. “It had gotten to the point where it was incredibly time consuming to do these multiple ship-to orders, and we realized the only way to do it without error was to invest in a new system and change the way we ran the company.”
The implementation of the new system in May represented a significant shift in operations. This upgrade was crucial, especially as Xentris began handling increasingly intricate orders, such as shipping Motorola products to multiple military addresses – sometimes 200 to 300 different locations for a single order. Without this system upgrade, managing such complex logistics while ensuring accuracy and efficiency would have been unsustainable.
Expanding into E-commerce and Retail Growth
Beyond adapting to changing distribution models, Xentris Wireless has also capitalized on the growth of e-commerce. The company manages online sales for major retailers like BestBuy.com, creating specialized online deals and coordinating direct shipments to end-users. This foray into e-commerce has seen substantial growth.
“It’s not a new business segment for us, but it’s grown significantly,” Christy states. “A year ago, we would have had 20 sales a week; now we’re doing several hundred a week.” This exponential growth in online sales underscores Xentris’s ability to adapt to and leverage new market channels.
Furthermore, Xentris has experienced robust growth in traditional retail channels. Accounts with major retailers such as Radio Shack and Best Buy have seen year-over-year growth in the hundreds of percent. This success stems from Xentris’s expanded role, which now includes not only designing products under the Xentris brand but also manufacturing and packaging private label brands for these retail giants.
Hybrid Business Approach and Carrier Diversification
Xentris Wireless employs a unique “hybrid” approach that blends traditional business strategies with adaptations to meet evolving customer needs. For Best Buy, this means manufacturing products under Best Buy’s Rocket Fish brand, with Best Buy taking ownership in China and managing the subsequent process. Conversely, for products under the Xentris brand, Xentris manages distribution from its own center according to retailer specifications. A similar model is in place for Radio Shack’s private label products.
“Our approach is unique,” Christy affirms. “It’s a hybrid method of using the old business strategy and what’s evolved from our customers’ needs.” This flexibility and willingness to customize solutions are key differentiators for Xentris in a competitive market.
On the carrier side, Xentris has long served Verizon. However, to ensure continued growth and market competitiveness, Xentris has strategically expanded its partnerships to include mid-tier carriers like Cricket, Go Wireless, and Wireless Zone. While these carriers have fewer individual stores compared to Verizon, their collective purchasing volume is substantial, providing significant growth opportunities for Xentris.
Christy anticipated shifts in the market, noting that larger carriers periodically consider direct sourcing for commodity products. “We saw the writing on the wall that we were going to lose some of the commodity business, but there’s a huge market for it in the mid-tier carrier market that would love to have these products,” he explains. This proactive diversification has allowed Xentris to maintain a strong position in the carrier market while continuing to serve major players like Verizon and AT&T, focusing on innovative and emerging wireless products.
In conclusion, Xentris Wireless’s latest strategies demonstrate a remarkable ability to evolve and thrive in the dynamic wireless accessories market. By focusing on comprehensive solutions, adapting to changing distribution needs, embracing e-commerce growth, and diversifying its client base, Xentris Wireless is well-positioned to continue its success and lead the way in the industry.
