The wireless accessories industry has witnessed exponential growth, and at the forefront of this expansion is Xentris Wireless. This company has adeptly navigated market changes, evolving its business platform to effectively meet the shifting demands of its clientele, which includes major retailers like Best Buy and prominent providers such as Verizon. Starting as a product-centric entity in 2003, Xentris has strategically transformed its operational model to comprehensively address the evolving needs of these key partners, particularly in Xentris Distribution and logistical support.
Xentris Wireless offers a suite of wireless solutions categorized into three core areas. The first is product development, where innovation takes center stage. At their expansive 132,000-square-foot facility in Addison, Illinois, Xentris manufactures state-of-the-art wireless gadgets.
The second category encompasses comprehensive marketing services tailored for their clients. This includes the creation of product launch materials, detailed store plan-o-grams, informative sales sheets, and a wide array of marketing and promotional assets. Furthermore, Xentris’ marketing expertise extends to crafting compelling product packaging designs that not only meet display requirements but are also strategically designed to boost sales performance.
The third critical pillar of Xentris’ offerings is what President and CEO Bill Christy describes as the logistical backbone of the business, focusing heavily on xentris distribution. “We are fully equipped to manage packaging and a significant portion of distribution,” Christy states. However, he points out a significant shift in retailer and carrier distribution methodologies over the past decade.
Modern businesses are increasingly moving away from traditional warehousing models. Many of Xentris’ clients now prefer to source products directly from overseas manufacturers. These products are then channeled through Xentris for packaging and xentris distribution services, either through direct purchase or by leveraging Xentris’ logistical infrastructure to bring goods from China to market.
“Our customers are showing a clear preference to avoid in-house warehousing,” Christy explains. “Moreover, the distribution landscape has changed dramatically. Instead of large bulk shipments of, say, 100,000 units to a central distribution hub like Best Buy’s, we are now frequently handling shipments of just 25 units to each of 4,000 individual store locations.”
Adapting Distribution Strategies for Modern Retail
This evolution in xentris distribution practices hasn’t necessarily reduced the overall volume of products Xentris handles for its clients. For instance, the total quantity shipped to Best Buy might still be around 300,000 units. However, the complexity has increased significantly. Packaging each product according to specific retailer codes and managing shipments to thousands of diverse locations has created a substantial operational workload that initially strained Xentris’ 54 full-time employees.
While Xentris successfully kept pace with the escalating demand, it came at the cost of employee focus. To address this, Xentris invested $1 million in an advanced ERP system throughout 2010. Christy emphasizes that the Epicor system was implemented to empower employees to concentrate on their core responsibilities, such as product innovation, rather than being bogged down by inefficient, makeshift processes required to manage the growing distribution demands.
“Previously, operations relied heavily on tacit knowledge and informal communication; different teams weren’t always fully synchronized in their processes. However, our team’s unwavering dedication to their roles and the company’s success ensured we met demands,” Christy acknowledges. “The sheer volume of multiple ship-to orders had become incredibly time-consuming and prone to errors. We realized that a fundamental shift in our operational approach, supported by a robust new system, was essential to manage xentris distribution effectively and accurately.”
The new system, launched in May, brought about significant changes, as is typical with any major IT infrastructure overhaul. However, the necessity was underscored by increasingly complex orders, such as shipping Motorola products to 200-300 military addresses for a single order. Without process optimization, effectively managing xentris distribution at this scale was unsustainable.
The ERP system also positioned Xentris to capitalize on its expanding e-commerce sales channels. For example, Xentris manages online sales fulfillment for BestBuy.com, handling specific online promotions and coordinating direct shipments to end customers.
“While e-commerce isn’t a completely new area for us, it has experienced remarkable growth,” Christy notes. “Just a year prior, we might have processed around 20 online orders per week; now, we are handling several hundred weekly, highlighting the increasing importance of efficient xentris distribution for online retail.”
A Hybrid Approach to Distribution and Market Expansion
Beyond e-commerce, Xentris is experiencing substantial growth in traditional retail channels. Their partnerships with major retailers like Radio Shack and Best Buy have seen year-over-year growth in the hundreds of percent. “Our strengthening relationships are driven by our ability to not only design products under the Xentris brand but also to package and manufacture private label brands for these retail giants,” Christy explains.
In the collaboration with Best Buy, Xentris manufactures products under Best Buy’s Rocketfish brand. Best Buy then assumes ownership in China and manages subsequent processes. Conversely, when Xentris manufactures products under its own brand, it leverages its distribution center to manage xentris distribution according to each retailer’s specific requirements. A similar model is applied to Radio Shack’s private label products.
“Our distribution approach is distinctive,” Christy emphasizes. “It’s a hybrid model that blends established business strategies with adaptations driven by our customers’ evolving needs, particularly in xentris distribution and logistics.”
On the carrier side, Xentris has maintained a long-standing relationship with Verizon, which Christy acknowledges was substantial business for the $150 million company. However, to maintain a competitive edge, Xentris has broadened its carrier partnerships to include mid-tier players such as Cricket, Go Wireless, and Wireless Zone.
While these mid-tier carriers have a smaller retail footprint, typically 400 to 1,000 stores, their collective purchasing volume contributes significantly to Xentris’ ongoing growth. Christy also notes a trend among larger carriers to directly source commodity products, a cyclical strategy they revisit periodically.
“We anticipated a potential reduction in commodity business from major carriers. However, we recognized a significant opportunity within the mid-tier carrier market, where demand for these products remains strong,” he explains. “Importantly, we continue to serve major players like Verizon and AT&T while simultaneously focusing on innovative products emerging within the wireless industry, ensuring a balanced and robust xentris distribution strategy across diverse market segments.”
