The wireless accessories market has seen explosive growth, and Xentris Wireless has successfully navigated this wave alongside its key clients, including major retailers and providers like Best Buy and Verizon. Founded in 2003 in Addison, Illinois, Xentris Wireless initially focused on product solutions. However, the company has strategically evolved its business platform to comprehensively address the changing demands of its clientele.
Xentris Wireless, operating from its Addison, IL headquarters, offers a suite of wireless solutions categorized into three core areas. The first is product development, a cornerstone of their operation. This involves the creation of innovative wireless gadgets within their expansive 132,000-square-foot warehouse located in Addison, Illinois. This Xentris Addison facility is where cutting-edge design and manufacturing come together.
Beyond manufacturing, Xentris provides comprehensive marketing support for its partners. This second category encompasses a wide range of services, from developing impactful product launch materials to creating detailed store plan-o-grams and compelling sales sheets. Furthermore, Xentris’s marketing expertise extends to crafting product packaging designs that not only meet visual merchandising standards but are also strategically designed to boost sales performance.
The third critical component of Xentris’s offerings is logistics. According to President and CEO Bill Christy, Xentris is fully equipped to manage packaging and a significant portion of product distribution. However, the landscape of retail and carrier distribution has transformed dramatically in recent years.
A significant shift is the move away from traditional warehousing by many companies. Some of Xentris’s clients now prefer to source products directly from overseas manufacturers and then partner with Xentris for packaging and logistical handling, either purchasing or bringing their products from China to Xentris.
“Our customers are increasingly seeking to avoid in-house product warehousing,” Christy explains. “Moreover, distribution models have changed. Instead of bulk shipments of 100,000 units to a central distribution center like Best Buy’s, we now frequently handle shipments of smaller quantities, such as 25 units, to each of 4,000 individual store locations.”
This evolution in distribution practices, characterized by smaller, more frequent shipments, has not reduced the overall volume of products Xentris handles for clients like Best Buy. The total quantity remains substantial, often around 300,000 products. However, the increased complexity of packaging to specific codes and managing deliveries to numerous locations placed significant strain on Xentris’s team of 54 full-time employees.
To maintain efficiency and employee focus amidst these growing demands, Xentris invested $1 million in an ERP system in 2010. Christy highlights that the Epicor system allows employees to concentrate on their core responsibilities, such as product innovation, rather than being overwhelmed by process workarounds needed to meet demand.
“Previously, processes relied heavily on informal, undocumented workflows. Teams operated somewhat in silos, but everyone was deeply committed to their roles and the company’s success, ensuring things got done,” Christy recalls. “However, managing these complex, multi-destination shipments became incredibly time-consuming and prone to error. We recognized that investing in a new system and fundamentally changing our operational approach was essential.”
The implementation of the new system, launched in May, presented its challenges, as is typical with major IT system overhauls. However, with increasingly complex deals, such as managing Motorola product shipments to 200-300 military addresses for a single order, the process transformation was critical for Xentris’s continued growth.
The ERP system also positions Xentris for future growth in online sales. For example, Xentris manages online sales for BestBuy.com, creating special online offers and coordinating direct shipments to consumers.
“While e-commerce isn’t a new area for us, it has experienced significant growth,” Christy notes. “Just a year prior, we might have processed around 20 online orders per week. Now, we are handling several hundred weekly.”
Beyond e-commerce, Xentris is also experiencing robust growth in retail channels. Accounts with major retailers like Radio Shack and Best Buy have grown by hundreds of percent year-over-year. “Our partnerships are strengthening because we are not only designing products under the Xentris brand, but also handling private label branding and manufacturing for our retail partners,” Christy explains.
In the partnership with Best Buy, Xentris manufactures products under Best Buy’s Rocket Fish brand. Best Buy then assumes ownership of the product in China and manages subsequent steps in the supply chain. Conversely, when Xentris manufactures products under its own brand, Xentris manages distribution from its Addison distribution center according to retailer specifications. A similar model is in place for Radio Shack’s private label products.
“Our approach is distinctive,” Christy states. “It is a hybrid strategy that blends traditional business methodologies with adaptations driven by our customers’ evolving needs.”
From a carrier perspective, Xentris has a long-standing relationship with Verizon, which alone provided substantial business volume for the $150 million company. To maintain a competitive edge, Xentris has expanded its carrier partnerships to include mid-tier players like Cricket, Go Wireless, and Wireless Zone.
While these mid-tier carriers have fewer retail locations, typically between 400 and 1,000 stores, their collective purchasing volume is significant enough to fuel Xentris’s growth. Christy also notes that larger carriers occasionally explore direct sourcing for commodity products to evaluate market conditions.
“We anticipated a potential decrease in some commodity business from major carriers. However, we recognized a substantial market opportunity within the mid-tier carrier segment, which is highly receptive to these products,” he says. “Importantly, we continue to serve major players like Verizon and AT&T while also focusing on emerging, innovative products within the wireless industry.”
Xentris Wireless, based in Addison, Illinois, demonstrates a remarkable ability to adapt and thrive in the dynamic wireless accessories market. Their evolution into a comprehensive solutions provider, combined with strategic investments and a customer-centric approach, positions Xentris Addison for continued success.
