The wireless accessories industry has witnessed explosive growth, and Xentris Wireless, under the leadership of CEO Bill Christy, has successfully navigated this expansion alongside major clients like Best Buy and Verizon. Founded in 2003, Xentris Wireless initially focused on product solutions but strategically evolved its business platform to proactively address the changing demands of its customer base.
Xentris Wireless offers a comprehensive suite of wireless solutions categorized into three core areas. Firstly, product development remains a cornerstone, with the company manufacturing innovative gadgets from its expansive 132,000-square-foot facility in Addison, Illinois. This commitment to in-house production allows for quality control and rapid adaptation to emerging market trends.
Secondly, Xentris provides extensive marketing support to its clients. This encompasses the creation of product launch materials, detailed store plan-o-grams, compelling sales sheets, and a range of marketing and promotional assets. Crucially, their marketing services extend to packaging design, ensuring that product packaging not only meets display requirements but also effectively drives sales performance.
The third key area, as highlighted by President and CEO Bill Christy, is logistics. “We are equipped to handle the packaging and most of the distribution,” Christy explained. He emphasized the significant shift in retailer and carrier distribution practices over the past decade. The traditional warehousing model has largely been replaced by more agile and direct shipping methods.
Many of Xentris’ clients now prefer to source products directly from overseas manufacturers, leveraging Xentris for final packaging and logistical execution upon arrival from China. This reflects a broader industry trend where businesses are increasingly seeking streamlined supply chains and reduced warehousing overhead.
“Our customers increasingly don’t want to warehouse the products themselves,” Christy stated. Furthermore, distribution patterns have become more granular. Instead of large bulk shipments to distribution centers, Xentris now manages smaller, more frequent shipments directly to individual store locations. As Christy illustrated, “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 evolution in distribution significantly altered the operational landscape for Xentris. While the overall volume of products shipped to clients like Best Buy remained substantial – still around 300,000 units in some cases – the complexity of packaging to specific codes and managing shipments to numerous addresses dramatically increased workload. The company’s 54 full-time employees faced mounting pressure to maintain efficiency and accuracy.
To overcome these operational challenges and ensure sustainable growth, Xentris Wireless, under CEO Bill Christy’s guidance, invested $1 million in implementing a robust Enterprise Resource Planning (ERP) system in 2010. The Epicor system was strategically chosen to streamline operations and empower employees to focus on their core competencies, such as product innovation, rather than getting bogged down in inefficient processes.
Christy acknowledged the previous reliance on informal, ad-hoc processes, stating, “There were a lot of secret handshakes; one group didn’t know what the other had to do to make things happen.” He praised the dedication of his team who successfully managed the increasing demands despite these challenges. However, he recognized the need for systemic change, “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 ERP system, while not without its challenges, was crucial for Xentris to handle increasingly complex deals. Christy cited an example of shipping Motorola products to 200 to 300 military addresses for a single order, highlighting the scale and intricacy of modern logistics. Without process optimization, such demands would be unsustainable.
Looking ahead, the ERP system is also positioned to support Xentris Wireless’s expanding online sales channels. The company manages online sales for BestBuy.com, creating specific online promotions and coordinating direct shipments to consumers. This online segment has experienced significant growth, as Christy noted, “A year ago, we would have had 20 sales a week; now we’re doing several hundred a week.”
Beyond online growth, Xentris Wireless is also strengthening its retail partnerships. Accounts with major retailers like Radio Shack and Best Buy have seen substantial year-over-year growth. CEO Bill Christy emphasized the deepening relationships, “We’re getting stronger with them because we’re not only designing product that carries the Xentris brand, we’re also packaging their private label brands and manufacturing them.”
Xentris adopts a hybrid approach to its retail collaborations. For instance, they manufacture products under Best Buy’s Rocket Fish brand, with Best Buy taking ownership in China and managing subsequent distribution. Conversely, for products under the Xentris brand, Xentris handles distribution from its own center according to retailer specifications. This flexible model is also applied to Radio Shack’s private label offerings.
“Our approach is unique,” Christy stated, emphasizing the blend of traditional strategies with adaptations to evolving customer needs. This hybrid model allows Xentris to cater to diverse client requirements and optimize its service offerings.
From a carrier perspective, Xentris Wireless has long served Verizon, a relationship that CEO Christy acknowledges as a significant contributor to the company’s $150 million revenue. To ensure continued competitiveness, Xentris has strategically expanded its carrier partnerships to include mid-tier players like Cricket, Go Wireless, and Wireless Zone.
While these mid-tier carriers have fewer individual stores compared to Verizon, their collective purchasing volume provides substantial growth opportunities for Xentris. Christy also noted a trend where larger carriers periodically explore direct sourcing for commodity products. Anticipating potential shifts in this commodity business, Xentris proactively targeted the mid-tier carrier market, recognizing the demand for quality wireless accessories in this segment.
“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,” Christy explained. However, Xentris remains committed to servicing major carriers like Verizon and AT&T, focusing on delivering innovative and cutting-edge products within the wireless industry. Under Bill Christy’s leadership, Xentris Wireless demonstrates a proactive and adaptive approach, positioning itself for continued success in the dynamic wireless accessories market.
