American Barcode and RFID Growing Despite Economy

Phoenix, August 18, 2008 – In a list of the top-10 integrators in the AIDC industry, American Barcode & RFID (ABRFID) would most certainly show up. And like other names on that list, ABRFID has played a pioneering role in application development for bar code, wireless mobile computing, and RFID solutions. In a recent conversation with company CEO Mike Stryczek, we learned that a slow economy doesn’t have to equate to slow sales. In fact, the reseller’s business is up 20% year over year.

Part of ABRFID’s success is that the company has aligned itself with some of the top vendors in our industry, including Motorola, Zebra, Intermec, Psion Teklogix, and Datamax — to name a few. “Vendors are doing a great job in providing what resellers need to succeed,” Stryczek told SCAN/DCR. “They give us the products we need for today’s emerging applications and the training to enable us to provide our customers the services they require. Good partners are a must for any reseller that hopes to do well in the market.

Continuing, Stryczek told us, “We have a great sharing of business information with our vendors. We have quarterly meetings with them to discuss our sales initiatives and to look at ways to narrow our focus in particular markets. It’s a two-way street; we both need to share information and strategies.”

Although ABRFID covers a number of markets, 80% of its business is in manufacturing and distribution, with an emphasis on tracking. He said he was excited about Zebra’s push into the RFID sector and Motorola’s continuously expanding product line. He added that Intermec is becoming more channel friendly, which is also a plus for VARs and integrators.

Cautiously optimistic Like most of his industry peers, Stryczek said he is approaching the market with cautious optimism. “It would be foolish to say the economy can’t affect our business,” said Stryczek. “But, if you keep a steady eye on your targets, perform the necessary due diligence, and stay aggressive, you can still grow sales. We have doubled our sales staff in the past 18 months, and it’s helped us maintain our sales momentum. Sure, we’ve seen some big deals that have been downsized — or even changed to pilots-but, for the most part, things are still going well for us.

“The bulk of our sales are in asset tracking,” he continued. “There is some movement toward RFID adoption in these apps, and we are starting to see some payback on our investments. That said, we are not seeing the traction expected from Wal-Mart and DoD RFID initiatives. Most of the sales in RFID seem to be in closed-loop applications. Our ABC Scan and ABC Warehouse software packages are a big part of our success in asset tracking, especially if the system is RFID-enabled.”

The best markets When we asked Stryczek to list the best new markets, he had several that he thought were doing very well. First, he said many companies are now looking to RFID to track servers and PCs. “This market is really coming on strong,” he stated. “Companies are also turning to RFID — with the help of bar codes — to monitor employee productivity. We offer systems that match employees to the products they are working on. This lets management know who is responsible for certain orders making their way through the manufacturing area. We have a strong relationship with Zebra’s card-printing business unit. Smart cards are a valuable tool in employee tracking.”

Core Competencies for Value Creation Stryczek said customers today are looking for end-to-end solutions to their needs, and he believes that is one of ABRFID’s big strengths. “Our clients want the whole system along with service and training,” said Stryczek. “You have to be aggressive in all parts of your business.” Stryczek said the company’s core competencies include:

• Equipment & Technology – The foundation for systems development
• Systems Development – Solutions for every needSystems Development – Solutions for every need
• Card Solutions – Exceptionally precise identification
• Printing Supplies – Essential materials for quality printing
• Service & Support – The thread that pulls it all together.

“The service element is very big these days,” said Stryczek, “especially in the era of .com sales. Most users begin their shopping on the Internet, but they are often willing to buy from a reseller, if for nothing else other than after-sale service. We work with vendor service programs, and we also have our own in-house service department. If it weren’t for the value adding we do, many sales would be strictly Internet.”

Recap

Stryczek didn’t really get into the whole discussion of why AIDC sales aren’t hurt as much during a recession. He just said that, if you offer the right products, along with system design and after-sale service and training, you can still succeed in this troubled economy. Vendors and resellers have to remain aggressive — sometimes hiring salespeople even when times are tough. It’s not easy…but it can be done.

About American Barcode and RFID

American Barcode and RFID (AB&R) is a nationally-recognized consultant and systems integrator of innovative Automatic Identification and Data Collection (AIDC) solutions for virtually any manufacturing, wholesale distribution or healthcare application. AB&R is a total solutions provider, specializing in barcode, radio frequency identification (RFID) and access control technologies. Based in Phoenix, Arizona and with sales offices throughout the United States, AB&R is committed to helping medium-to-large companies realize cost savings, operational efficiencies and increased security. To learn more, visit http://www.abrfid.com.