Big-Time AIDC Growth

Bonney Shuman stands out in the AIDC (automatic identification and data collection) industry. But Shuman's notoriety isn't due to the fact that she is one of the few female CEOs in this business. Nor is it because she is one of the 8 female members of the elite AIDC 100 (a group of 100 AIDC professionals who have contributed to the growth and advancement of the industry). Instead, Shuman is known most for building her company, Stratix Corp. (Norcross, GA), into a $37 million VAR.

Stratix was last profiled in Business Solutions in 1999. At that time, the company had annual sales of $10 million and 60 employees. Today the company employs 75 and is expected to reach $60 million in sales revenue by the end of this year. In addition to closing some very large deals, Shuman attributes much of Stratix' growth in the past few years to an increased emphasis on professional services and educational programs.

Data Collection Services Complete Your Solution
"In 1999 I believe we were in the infancy of our ability to offer a full complement of solutions for our customers," Shuman admits. "While we had a few successes with select applications, it took us awhile to figure out what encompasses a total solution."

Of course, the definition of a total solution is subjective. For Stratix, Shuman wanted to make sure that definition included any professional services that could accompany a hardware/software solution. Thus, the staging, installation, repair, postsale training, project management, and software development services at Stratix have all been beefed up in recent years. Consequently, in the past five years the company has doubled the size of its professional services staff to 12.

The fact is, end users expect -- and want -- a total solution. Many of the professional services Stratix offers include tasks customers don't want to bother with themselves. Take staging, for example. Sometimes staging can be as simple as kitting various hardware components, including charged batteries, into one package so the product is ready to use when received. Other times, staging can include extensive software downloading and testing. Either way, these are services that help a customer deploy a solution quickly and easily.

Stratix offers its professional services on an a la carte basis. Sometimes the company will bundle services into a solution to add more value and distinguish its solution from a competitor's. For example, one of Stratix' largest clients is nationwide hardware retailer The Home Depot. The client wanted to deploy 39,000 bar code scanners (see sidebar on this page) into 1,600 stores in less than 120 days and didn't have the internal staff to make this happen efficiently. One of the key reasons The Home Depot chose Stratix for this project was the VAR's staging services. Stratix downloaded the software to the scanners, charged the batteries, and packed the scanners and a quick review training sheet into one box for each store. Stratix' staff called each store prior to shipment and followed up after shipment to make sure the scanners were received, installed, and had no problems.

"It's tougher to be an AIDC VAR these days because hardware margins are lower than in years past," Shuman says. "That's why our Professional Services Group is one of the fastest growing divisions at Stratix."

AIDC Education: Always In Demand
In addition to its professional services, another value-add Stratix offers is customized education programs. For instance, although the VAR currently has no completed RFID (radio frequency identification) installations, it is offering an RFID education package for those clients interested in "looking before weeping," as Shuman says. "With our RFID education program, we make clients aware of the pros and cons of the technology so there are no surprises after an implementation. In general, I think what makes a project unsuccessful is the customer's misunderstanding of how the technology really works. So, we try to anticipate what will make each project successful for a client, and sometimes that process starts with a presales education program." She estimates Stratix hosts about 25 to 30 seminars each year.

Many of the requests Stratix receives for education services concern compliance issues regarding bar code labeling. One of its earliest -- and most lucrative -- assignments on this topic came in 1989 when the VAR was hired by the American Hardware Manufacturers Association (AHMA) to write the Hardlines Industry Guideline on bar coding. As part of the process of writing this guideline, Stratix invited major retailers such as The Home Depot, Lowe's, and Ace Hardware to discuss their needs and concerns regarding bar coding. Because of this project, both The Home Depot and Lowe's invited Stratix to their headquarters to help them introduce bar coding to their stores. That initial contact has led to various projects with both retailers over the years. Other large customers, such as the Department of Defense and Wal-Mart, have also used Stratix' compliance-related education programs. In addition, Shuman says her company performs approximately five bar code compliance audits each year.

And client education doesn't end after the first program. Because of its clients' employee turnover, Stratix is constantly providing education services. "When we do, we always tell the client to look beyond a specific technology need," explains Shuman. "Thus, it is very common for us to come back after one program/project and give advice, or even close a sale, on AIDC technology for another process. I can think of numerous examples of where we didn't provide a customer with anything but education at first, but later ended up making a solution sale. Essentially, these education programs give us credibility with clients."

It Takes More Than Just Hardware Sales To Grow
Certainly, credibility is one of the key by-products of professional and educational services. Direct revenue from these services, of course, is another. Yet Shuman states that Stratix' professional services contribute only approximately 10% to the company's annual revenue. Nevertheless, she insists the importance of offering these services is paramount to securing large customers. And obviously she knows a thing or two about growing an AIDC business. Since last year, Stratix has invested $2 million in its IT infrastructure, new management/sales/professional services personnel, and customized Web portals. The company is also in the process of moving from its 16,000-square-foot facility to a new 30,000-square-foot location. With growth like that, Stratix is bound to continue to stand out in the AIDC industry.