The wireless accessories market has experienced explosive growth, and at the forefront of this expansion is Xentris Wireless, guided by the vision of CEO Bill Christy. Since its inception in 2003, Xentris Wireless has strategically transformed its business model, evolving from a product-centric supplier to a comprehensive solutions provider, catering to major clients like Best Buy and Verizon. This adaptability has solidified Xentris’s position in a dynamic industry.
Xentris Wireless, under Bill Christy’s leadership, offers a trifecta of wireless solutions designed to meet the multifaceted needs of its clientele. These core categories encompass product development, comprehensive marketing services, and streamlined logistics management, each playing a crucial role in their client partnerships.
Xentris Wireless: A Multi-Faceted Solution Provider
Xentris’s commitment to innovation begins with its robust product development capabilities. Operating from a substantial 132,000-square-foot warehouse in Addison, Illinois, the company manufactures cutting-edge wireless gadgets. This in-house production allows for stringent quality control and rapid adaptation to market trends, ensuring clients receive state-of-the-art products.
Beyond manufacturing, Xentris provides extensive marketing support. Understanding that successful product launches require more than just quality items, Xentris assists clients with everything from developing compelling product launch materials to designing effective store plan-o-grams and impactful sales sheets. Their marketing services extend to creating product packaging that not only meets display requirements but is also strategically designed to boost sales figures. This holistic approach ensures products are not only well-made but also well-marketed.
Logistics forms the third pillar of Xentris’s solution offerings. Bill Christy emphasizes the company’s capability to manage the “logistics end of the business,” including packaging and distribution. However, Christy notes a significant shift in retailer and carrier distribution practices. Many clients are moving away from traditional warehousing, opting instead for direct shipments from foreign manufacturers, often in China. In these scenarios, Xentris steps in to manage packaging and logistics, ensuring products are ready for final distribution. This adaptable logistics model is crucial in today’s fast-paced retail environment.
Adapting to Distribution Changes and ERP Implementation
Christy explains that the evolving distribution landscape has led to a significant change in shipping patterns. Instead of large bulk shipments to central distribution centers, Xentris now frequently handles smaller, more frequent shipments directly to individual store locations. This shift, while not necessarily altering the total volume of products shipped, drastically increased the complexity of operations. For example, shipments to Best Buy might still total 300,000 products, but these are now broken down into smaller quantities destined for thousands of store addresses.
This increased complexity placed a strain on Xentris’s operations. To maintain efficiency and accuracy, Xentris invested in a $1 million Enterprise Resource Planning (ERP) system. Bill Christy highlights that the Epicor system was implemented to streamline operations and allow employees to focus on their core responsibilities, such as product development, rather than getting bogged down in logistical complexities. Prior to the ERP system, managing the intricate shipping requirements involved cumbersome manual processes.
The implementation of the ERP system in May marked a significant operational upgrade. While system integrations are often challenging, Christy emphasizes that this change was essential for handling increasingly complex orders, such as large Motorola product shipments to numerous military addresses. The new system is pivotal in error reduction and scalability, crucial for future growth.
Growth and Hybrid Approach in the Wireless Market
Looking ahead, Bill Christy sees substantial growth opportunities in various segments. Internet sales are a burgeoning area for Xentris. The company manages online sales for BestBuy.com, creating special online deals and handling direct-to-consumer shipments. This online segment has seen exponential growth, transitioning from a few dozen weekly sales to hundreds, demonstrating the increasing importance of e-commerce in their strategy.
Retail partnerships remain a cornerstone of Xentris’s success. Accounts with major retailers like Radio Shack and Best Buy have grown significantly year-over-year. Xentris strengthens these relationships by not only designing and manufacturing products under its own brand but also producing private label brands for these retailers. For instance, Xentris manufactures products under Best Buy’s Rocket Fish brand, showcasing the depth of their retail integration.
Xentris, under Bill Christy’s direction, adopts what he describes as a “hybrid approach,” blending established business strategies with adaptations to meet evolving customer needs. This approach extends to carrier relationships. While Verizon has been a long-standing, significant client, Xentris has strategically expanded to serve mid-tier carriers such as Cricket, Go Wireless, and Wireless Zone. These mid-tier carriers, despite having fewer individual stores, collectively generate substantial volume, contributing to Xentris’s continued growth. Christy acknowledges the dynamic nature of the carrier market, noting that larger carriers periodically explore direct sourcing for commodity products. However, Xentris remains focused on serving both major and mid-tier carriers while emphasizing innovation in the wireless industry.
In conclusion, Xentris Wireless, guided by Bill Christy’s strategic vision and adaptive leadership, exemplifies how businesses can thrive in the rapidly changing wireless accessories market by prioritizing comprehensive solutions, embracing technological advancements, and maintaining a customer-centric approach.
