The wireless accessories sector has witnessed unprecedented expansion in recent years, and Xentris Wireless has adeptly navigated this growth alongside its diverse clientele, including major retailers like Best Buy and telecommunications giants such as Verizon. Since its inception in 2003, the company has strategically evolved its core business platform, transitioning from a product-centric approach to a comprehensive solutions provider, effectively catering to the ever-changing demands of its customer base.
Comprehensive Wireless Solutions by Xentris Wireless
Xentris Wireless offers a robust suite of services, broadly categorized into three key areas.
Firstly, Product Development remains a cornerstone of their operations. Leveraging their state-of-the-art 132,000-square-foot facility in Addison, Illinois, Xentris Wireless excels in manufacturing innovative and cutting-edge wireless gadgets. This commitment to in-house production allows for stringent quality control and rapid adaptation to market trends, ensuring clients receive top-tier products.
Secondly, Marketing Services form a crucial component of their integrated solutions. Xentris Wireless provides extensive marketing support, encompassing everything from crafting compelling product launch materials to designing effective store planograms and developing impactful sales sheets and promotional campaigns. Furthermore, their marketing expertise extends to creating product packaging that not only meets visual merchandising standards but is also strategically designed to boost sales performance.
Thirdly, Logistics Management completes the triad of Xentris Wireless’s service offerings. As Bill Christy, President and CEO, explains, Xentris Wireless is fully equipped to manage packaging and a significant portion of product distribution. However, the landscape of retail and carrier distribution has transformed considerably over the past decade. The prevalent shift away from extensive warehousing has led many of Xentris Wireless’s clients to adopt more streamlined approaches. Some clients now prefer to source products directly from overseas manufacturers and then partner with Xentris Wireless for packaging and logistical handling, whether purchasing products directly from China or managing the import process themselves.
Christy notes, “Our customers are increasingly moving away from in-house warehousing. Moreover, the distribution model has shifted from large bulk shipments, such as 100,000 units to a central distribution center, to more granular distribution, with shipments of, for example, 25 units to each of 4,000 individual store locations.”
Adapting to Distribution Evolution with Strategic ERP Implementation
This evolution in distribution practices, while not necessarily altering the total volume of products Xentris Wireless handles for clients like Best Buy (still around 300,000 units, for instance), has significantly amplified the complexity of operations. Packaging products to specific coding requirements and managing shipments to a multitude of individual addresses placed considerable strain on the company’s 54 full-time employees.
To proactively address these challenges and maintain operational efficiency, Xentris Wireless invested $1 million in implementing a sophisticated Enterprise Resource Planning (ERP) system throughout 2010. Christy emphasizes that the Epicor system empowers employees to concentrate on their core responsibilities, such as product innovation, rather than being bogged down by inefficient, manual processes.
“Previously, intricate, informal processes were in place – a sort of ‘secret handshake’ where departmental workflows weren’t fully integrated. Despite incredible employee dedication and commitment to the company’s success, these processes were becoming unsustainable,” Christy recounts. “The sheer time investment required for managing these complex, multi-destination shipments, coupled with the imperative to minimize errors, underscored the necessity of investing in a new system and fundamentally reshaping our operational framework.”
The ERP system, launched in May, represented a significant organizational change, as is typical with large-scale IT system implementations. However, with the rising frequency of complex orders, such as shipping Motorola products to 200-300 military addresses within a single order, adapting processes became essential for sustained growth.
Expanding into E-commerce and Retail Partnerships
The enhanced operational capabilities facilitated by the ERP system also positioned Xentris Wireless to capitalize on the burgeoning e-commerce sector. For example, Xentris Wireless manages online sales for BestBuy.com, curating exclusive online deals and overseeing direct-to-consumer shipments.
“While e-commerce isn’t a new business segment, its growth has been substantial,” Christy states. “Just a year prior, we might have processed 20 online sales per week; currently, we are handling several hundred weekly.”
Beyond e-commerce, Xentris Wireless is experiencing robust growth in traditional retail channels. Their partnerships with retailers like Radio Shack and Best Buy have witnessed triple-digit percentage growth year-over-year. “Our strengthening relationships stem from our expanded role – not only designing products under the Xentris Wireless brand but also developing and manufacturing private label brands for our retail partners,” Christy explains.
In their collaboration with Best Buy, Xentris Wireless manufactures products under Best Buy’s Rocket Fish brand. Best Buy then assumes ownership of the product in China and manages subsequent stages. Conversely, for products manufactured under the Xentris Wireless brand, Xentris Wireless manages distribution from their center according to retailer specifications. A similar private label arrangement is in place with Radio Shack.
“Our approach is distinctive,” Christy asserts. “It’s a hybrid strategy, blending established business models with adaptations driven by our customers’ evolving requirements.”
Strategic Diversification into Mid-Tier Carrier Market
On the carrier front, Xentris Wireless has long served Verizon, a relationship that alone provided substantial business volume for the $150 million company. However, to maintain a competitive edge and ensure continued expansion, Xentris Wireless strategically diversified its carrier partnerships to include mid-tier players such as Cricket, Go Wireless, and Wireless Zone.
While these mid-tier carriers operate fewer stores (400-1,000), their aggregate purchasing volume contributes significantly to Xentris Wireless’s growth trajectory. Christy also notes a trend among larger carriers to occasionally source commodity products directly, a cyclical strategy they revisit periodically to assess market dynamics.
“We anticipated a potential reduction in commodity business from major carriers. However, we recognized a substantial opportunity within the mid-tier carrier market, where demand for these products remains strong,” he explains. “Crucially, we remain committed to serving major carriers like Verizon and AT&T while simultaneously focusing on pioneering innovative products within the wireless industry.”
Conclusion: Xentris Wireless – A Model of Adaptability and Growth
Xentris Wireless exemplifies a company that has not only thrived in the rapidly evolving wireless accessories market but has proactively shaped its business model to anticipate and meet the changing needs of its diverse customer base. Through strategic investments in infrastructure, expansion into new market segments, and a commitment to innovation, Xentris Wireless is positioned for continued success and leadership in the wireless accessory landscape.
