Investors FAQ

Learn Why You Should Invest in TrackX

The Short Story of What We Do

Accounting for the whereabouts of fixed or capital assets is not only a fiscal obligation, it is crucial in operating efficiently, optimizing costs, managing labor, improving security and eliminating loss and theft.

TrackX provides a SaaS-based enterprise software platform to help companies track and manage their physical assets (beer kegs, plastic pallets, transportation equipment, and laptops).  TrackX’s solution leverages multiple auto-ID and sensor technologies to automate the tracking of a wide variety of assets critical to the operations of a large enterprise. This single platform can support all of the company’s locations and automate numerous business processes related to the utilization of physical assets.

The resulting data can be aggregated across all locations and presented with powerful visualization, providing executable business intelligence previously unattainable. The result is a more efficient operation and rapid ROI for the customer.

What is TrackX’s core competency?
Our core competencies are derived from our focus on and ability to provide a complete solution to customers in which we integrate IoT with our GAME platform and then configure the solution specifically for a single customer.
We have broad knowledge regarding process execution and how processes can be changed to improve business efficiencies, and we can react effectively to a diverse set of process issues.
We have a long history and expertise in RFID and sensor technologies that we leverage as a competitive advantage.
We have decades of experience and knowledge in the asset tracking and supply chain industries and fully understand the challenges that our customers are faced with in addressing their asset tracking needs.
What is Enterprise Asset Management (EAM)?
The goal of enterprise asset management is to optimize the value and utilization of physical assets while minimize the cost of ownership.
EAM is a process methodology that offers value for most industries – from breweries and bakers to construction, data centers and many more. EAM enables companies to track, locate, manage and control assets to generate revenue. Ultimately, EAM provides business intelligence to improve business productivity.
Can you describe a typical industry process?
Most companies that produce a product follow a similar process as depicted in this flow chart:
Individual parts are received at a plant, then the plant produces products which are generally sent to an inventory storage area. Upon order fulfillment, the product is taken from inventory, placed in a trailer and driven to a distribution location. The product would then be shipped from distribution to the sales end point. In many cases, the items used in shipping the product, such as a pallet, are expected to be returned to the company. Often, many of these shipping assets disappear once they leave the plant.
TrackX focuses on fulfilling needs across the entire process. And, in general, this is very repeatable from customer to customer and industry to industry.
How big is the problem?
  • Breweries fill beer kegs only 3.2 times a year, largely because they can’t find them
  • Plastic pallets are generally lost at a rate of 10% per year
  • Automotive parts bins are disappearing at a rate more than 12% per year
  • Portable toilet companies lose 8% of their units per year
  • Nurses spend 20-30 mins a shift looking for misplaced equipment
  • Hotels can lose up to 15% of their linen inventory, nearing $350 million/year
  • Bakeries don’t know where their bread racks/containers are. Cost about $500,000/year for average industrial baker;
  • 13 million plastic pallets are “somewhere”;
  • Misplaced construction equipment in US are estimated at $1 billion/year.
  • Most large distribution yards function on clipboards and two-way radios. They are paper intensive and prone to manual error.
Inefficient processes exist in many industries. Historically, enterprises applied lean manufacturing principles to improve quality, optimize process operations, reduce labor and reduce cost of operation. The introduction of ISO9000 spurred rapid changes across many industries.
By integrating its Global Asset Management for Enterprises (GAME) software platform with Internet of Things sensors, TrackX can apply these proven and effective lean principles to asset management processes.
What is industry doing about it?
Inefficient operations are such a big problem that a new international ISO55000 standard has been deployed to focus on Enterprise Asset Management. Do you remember when quality was a major issue and ISO9000 was introduced? ISO 9000 standards provide guidance and tools for companies to ensure that  products and services consistently meet customer’s requirements. This paved the way for an entire industry focused on maintaining these standards. TrackX believes that Enterprise Asset Management (EAM) driven by ISO55000 will prove to be similar in scale and execution. How do we know? Ask KPMG, PWC, Accenture, Deloitte, and all the other usual suspects who have established newly organized EAM consulting practices.
What is driving adoption?
  • RFID has become less expensive and more capable;
  • Reader and Antenna technology has vastly improved;
  • IoT sensors capturing light, humidity, acceleration, pressure and other data are emerging;
  • There is an acceptance towards SaaS-based solutions by large enterprise;
  • The Internet of Things, Big Data and Digital Transformation are catalysts for enterprise asset tracking;
  • There is increased pressure on companies to identify collapsible, reusable packaging; and,
  • There are new regulatory and compliance mandates being established across multiple industry segments.
Hardware Pricing Falling, While Functionality is Increasing
TrackX helps companies across a broad industry segment with one or multiple of the following solutions:
  • High Value Asset Tracking
    • Tracking and managing IT assets, tools, calibration equipment, manufacturing equipment, inventory
  • Returnable Transport Item (RTI) Tracking and Reusable Assets Management
    • Managing the shipping, receiving, maintenance, repair, and utilization of returnable and reusable assets
    • RTIs: Beer kegs, plastic pallets, bakery racks, dairy containers, automotive bins, chemical cylinders, etc.
    • Rental/lease equipment: porta-potties, furniture, etc.
  • Yard Management and Delivery Tracking
    • Tracking and managing the trailers, trucks, labor, gate activity and dock activity in large distribution facilities
    • Scheduling and monitoring delivery of goods against orders
  • Work-In-Process Tracking
    • Managing the parts, labor, process and inventory within a manufacturing environment
Why is “now” the right time for Enterprise Asset Management?
While Asset Tracking is not a new category, cost-effective and comprehensive Enterprise Asset Management (EAM) became a reality recently as the maturation of SaaS, Industrial IoT, and Big Data technologies combined with adoption of productivity improvement principles began to converge.
Progress was being made slowly, but the catalysts didn’t exist to push the market forward. Meanwhile, lean principles were being introduced to solve inefficiency issues in mass manufacturing. Process improvement and process optimization became a major focus, yet were not applied to asset tracking, and inefficiency of asset utilization problems remained.
The IoT ramp and the general decrease in sensor prices stimulated a renewed interest of the otherwise moribund asset tracking space.
At the same time, companies were being continuously pressured to improve operations across their footprints, and process improvement began to be applied to asset logistics. The idea of continuous monitoring was rekindled, and the larger concept of enterprise asset management was reborn.
Major tailwinds have developed around EAM, including the general trend of IoT as well as the development of ISO55000 standards for implementing an Asset Management program. Major management consulting firms are now engaging large customers in EAM planning which then demand TrackX type implementations to tie corporate systems and assets together.
What problem are you solving? Can you tell us more about what is going on in Enterprise Asset Management?
Fundamentally, and surprising to many, corporations have a hard time keeping track of their assets.  They can’t find things like: computers, beer kegs that have left the brewery, vehicles in their yards. TrackX GAME is the answer.
To start, let’s take a look at what is being written about it. From CIOReview
Enterprise Asset Management (EAM) applications have gained traction in recent years due to the growing need for continuous monitoring of assets within organizations. But what exactly does an EAM application do? Simply put, an EAM software helps managers get a holistic view of the company’s assets across departments, facilities, business units and even geographical locations. Such a complete view can help them to control and pro-actively optimize operations leading to increased efficiency and productivity.
Another quote:
Enterprise asset management (EAM) is the process of managing the lifecycle of physical assets to maximize their use; save money; improve quality and efficiency; and safeguard health, safety and the environment.
There is also much going on in addressing the broad need for Enterprise Asset Management from the standards perspective. Inefficient operations are such a big problem globally that the new international ISO55000 standard has been issued to deal with Enterprise Asset Management. Many years ago, when manufacturing quality was a major issue, ISO9000 was introduced. ISO9000 was a major catalyst that drove huge opportunities to drive out inefficiencies in manufacturing processes.
TrackX believes that ISO55000, which is currently in the early stages, will drive significant EAM opportunities for both fixed and mobile assets.
What is the Total Available Market (TAM) for TrackX?
We seek to define the TAM by pointing to market research studies conducted by independent third parties.
TrackX is operating within the broader IoT trend that has been defined to be approximately $200 billion by 2022. Then asset management, which uses IoT as part of its delivery, is estimated to be $25billion by 2022. Enterprise Asset Management software in the US is estimated to be $8 billion by 2022.
TrackX offers EAM solutions that integrate IoT with software thus placing the company in a hybrid category, not specifically software, nor purely IoT.
To be conservative, we align ourselves with the software category and suggest that the minimum TAM for TrackX is $8 billion.
Our TAM is supported by a huge tailwind of IoT.
Why TrackX?
TrackX’s management team has been working together in the asset tracking and supply chain management industries for close to 20 years. We know the history of asset management and are defining how it can evolve. We have worked many years perfecting our approach to EAM, resulting in large enterprise customer wins and expansions across these customer footprints.
Over this period, we have leveraged our EAM experience to:
  • Develop and refine business and product strategies;
  • Understand customer requirements and success parameters,
  • Solicit client feedback to evolve our solution;
  • Deploy solutions for customers;
  • Provide support for new and emerging sensor technologies; and,
We have the skills, expertise, and drive to become an Enterprise Asset Management leader. We believe the time for broad EAM expansion is now.
Why is TrackX in so many industries?
TrackX seeks to be the System of Record for EAM with tight integration into other ERP solutions to help customers unlock the value of those investments.  While we do target a growing number of industries, we are only delivering one platform, GAME, and four core solution templates:
  • High Value Asset Tracking (ie. IT Assets, tools, calibration equipment, etc.);
  • Returnable Transport Item Tracking and Reusable Asset Management;
  • Yard Management and Delivery Tracking;
  • Work-in-Process Tracking.
From a business strategy perspective, this suggests broad coverage in target industries resulting in a very strong, stable market position unaffected by single industry-specific macro issues.
Can you talk about how TrackX products align with industries?
Our products are not intended to align with industries per se, but with operating models that are consistent across/within industries, supply chain being one, returnable assets another. For example, the returnable asset model may apply to construction rental, but it also applies within automotive packaging, brewery kegs and plastic pallets.
TrackX products are designed to suit either a complete process or selected elements within those processes that can eventually lead to expanding to the complete process.  And since our main product GAME is a platform, it can be adapted to variants that exist across industries as well as competitors within an industry.
Also, within the main GAME platform, we may create process “templates” that would limit the need for customer by customer adaptation, address process similarities across industry verticals, speed up customer deployment and increase the repeatability of the solution.
Are you considering any Mergers and Acquisitions (M&A)?
M&A is one of our Key Business Strategies, and we intend to be opportunistic when appropriate. As a public company, we offer the liquidity opportunities for small and niche-focused EAM business owners.  We successfully closed our first acquisition – broTECH Solutions – and are now seeing the benefits from the addition of new product features, cross selling opportunities and stronger human resources to more effectively help our customers.
Our focus will be to look for companies that would:
  • Add industry experience;
  • Add customers;
  • Add revenue;
  • Expand geographical coverage;
  • Be accretive;
  • Represent opportunities for rapid growth using the TrackX platform, and;
  • Extend our competitive market position with new features and functionality.
How does your partnership program work?
We consider our partner program to be a key element in cost effectively scaling the business. Our partners support TrackX goals by increasing capacity, broadening regional coverage, deepening industry experience, expanding the customer base, lowering cost of resources, and extending TrackX service offerings.
TrackX seeks partners that can provide various skills and value to our Company. In exchange, TrackX offers our partners opportunities to participate in projects for which they are best positioned.
Our partners include:
  • Hardware Partners – providing availability of product, competitive pricing, configuration services and hardware support.
  • Integration Partners – providing TrackX trained implementation and delivery services, greater regional coverage and scale as TrackX grows.
  • Reseller Partners – providing TrackX solutions as a complement to their existing solutions often in industries where TrackX has less experience.
We collaborate with our partners to more effectively scale to support each other’s growth. In addition to the values noted above, our partners assume various roles during most initial deployments in conjunction with TrackX project management and delivery service personnel. Partner participation in projects may include: site surveys, hardware procurement, kitting and configuration, cabling and electrical, installation and testing, software integration, system verification and more.
TrackX continually seeks effective partners with whom we can advance the business goals of each company.
What are your Key Business Strategies?
TrackX is focused on the following key growth strategies:
  • Deliver solutions to address Enterprise Asset Management challenges;
  • Engage and close business with Top Tier, Fortune 500, industry leaders;
  • Dominate selected industry verticals (e.g. Food, Beverage, Rental, others);
  • “Land and Expand” business to increase GAME adoption;
  • Deploy customer success methodologies to ensure long-term relationship with customers;
  • Maintain continued product enhancement linked to/driven by customer requirements;
  • Work with customers to develop GAME as a system of record thereby embedding it as an indispensable part of their business operations;
  • Implement a partner program that leverages collaborative relationships;
  • Undertake M&A when appropriate to support new customer functionality and expand geographically into new markets, and;
  • Steer revenue model towards high-margin, recurring revenues.
What is your business model and how do you scale?
In a broad sense, we would be considered an enterprise solutions company where the solutions are comprised of the following:
  • Hardware required to tag and read assets to collect data;
  • Software-as-a-Service (SaaS) that analyzes massive amounts of asset data and turns it into manageable business intelligence with respect to the customers operational processes, and;
  • Professional services required to install, configure, integrate and support the implementation.
The TrackX business model is one of customer relationship development dominated by a “land and expand” strategy to drive long-term value for customers.
The implementation of our business model is defined by our Key Business Strategies and our ability to execute against those defined items.
TrackX is not a traditional one-time software sale to a customer, nor is it a pure SaaS subscription model.  Currently our revenue is generated from hardware, services and recurring software.  Scale is achieved not only through landing new customers but also by expanding across existing customers business segments and geographical locations.
What is the revenue model of this business?
When first engaging with a customer, we generate initial revenue in three ways: consulting services to set up a customer solution, hardware to support the solution, and monthly SaaS revenues from ongoing use of the solution. Revenue amounts depend on the size of the project.
Revenue is also generated by upselling or expanding the deployment of the application within a customer – we call this “Land and Expand”. Upselling revenue typically is the result of increasing the number of locations or expanding across new business segments and/or to include new asset classes.
Revenue per location could be one way to look at it, but some customers may have a small number of very large locations, while others may have large number of small locations. Thus, locations as a metric, although helpful directionally, can only offer a range since large size locations will be priced differently from smaller ones.
You talk about “Land and Expand” a lot. Can you offer more details?
“Land and Expand” is one of TrackX’s Key Business Strategies. It is a common strategy deployed by other software companies including: Salesforce, Tableau and Atlassian.
At TrackX, our “Land and Expand” strategy is 4-fold: Company, Location, Asset Class and Industry
  • Company:  We first target top tier accounts within an industry with one of our four focused solutions of GAME;
  • Locations: We will establish the initial deployment, serve the need of one location and then, based on successfully meeting the customer initial needs, expand the solution across other locations utilizing the same business process;
  • Asset Classes: A TrackX initial deployment is often for one specific pain point for a company. However, as the company begins to understand the value of tracking one asset they begin to see the possibilities of tracking another. E.g. TrackX may be requested to track servers in a datacenter of a large laboratory. Realizing the value added, the laboratory then requests that TrackX begin to track and manage laboratory equipment. As TrackX works through initial deployments, we gain insight into a customer’s broader asset classes and business processes, understanding the customer’s pain points, and then demonstrating how GAME can parse operational inefficiencies and monitor assets.
  • Industry: In servicing the asset tracking requirements of a major enterprise account within an industry, we will then proactively target other enterprise accounts within the same industry.  At this time, TrackX is making progress in the Food and Beverage, Transportation and Logistics, Automotive, Insurance, and Manufacturing industries
Our GAME platform also helps within the overall “Land and Expand” strategy. Most efforts are focused at delivering a total solution that supports multiple, integrated functional activities, which make up an operating process, say for example, Supply Chain. Yet, some customers have a narrower view and seek to address maybe just one functional area to start. TrackX has packaged GAME for some select functional areas, initially Yard Management and Supply Chain Management to gain access to customers. We win (land) these customers by addressing a specific functional problem, but through ongoing efforts, focus on expanding to all functions across the organization.
How does software revenue scale as you execute on “Land and Expand”?
TrackX revenue is aligned with the value we deliver to our customers. Monthly SaaS revenue increases with each:
  • Customer location added
  • TrackX solution installed
  • Read point configured (Fixed, Mobile, Handheld Reader)
  • Asset Tier reached
What does the competitive environment look like?
The asset tracking industry is a fairly fragmented space with a number of smaller players. Most tend to be departmentally focused,  support proprietary hardware or target one particular business problem. None approach asset tracking as an enterprise opportunity, and TrackX is unique in its ability to support the diverse asset tracking needs of enterprise accounts. We typically only run into significant competition in the Yard Management arena. Pinc Solutions and C3 are two companies we often run into in the Yard Management space, but we have not lost an opportunity to either of these competitors.
IBM Maximo is an EAM solution, however it is dedicated to operations and maintenance management of infrastructure activities such as power generation, waste plants, and refineries.
There are various small companies that offer EAM solutions, but these are typically focused on niche markets or only support barcode technology. These would include Entigral, Surgere, Trackabout and others. Others exist, but do not have the potential to scale which we believe limits their ability to take on enterprise opportunities. We consider many to offer the potential for M&A if they meet criteria.
Some hardware companies try to offer complete solutions by adding in some software component. We know all these companies since we purchase RFID inventory from them. Most are our partners, and most offer software that is less than adequate for a complete solution. Indeed, most have partnered with TrackX to sell more of their hardware.
We will continue to monitor the state of the competition and make moves as necessary.  Our strategy is to partner and acquire as appropriate to make TrackX a focus point in the large EAM ecosystem.
What are your competitive differentiators?
We are hardware agnostic;
We are enterprise scalable;
We are integrated into the major ERP and business systems used by our customers;
We have a strong and experienced team;
We are solution focused;
We are SaaS-based;
We have a strong analytics capability;
We have a long head start and successful implementations within fortune 500 accounts;
We have a very strong infrastructure management module supporting fixed, mobile and handheld reader technologies.
Why don’t you release the names of your customers?
In most cases, customers contractually bind us not to disclose their names.   Our solutions provide significant competitive advantages that our customers want to protect.
Restricting the use of a name is not uncommon in situations where customers want to take advantage of being a first mover or early adopter. And, in cases where TrackX’s GAME impacts business process change, customers may be even more sensitive to disclosing GAME’s competitive advantage.
Still, we recognize that investors want to know about our customers, so we sometimes infer whom our customers are in our press releases and try to offer as much detail as to the size of these organizations and TrackX’s potential opportunities.

Still have questions about TrackX?

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