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From Here to
There by Craig Reem for the OC Metro
"What's a life
insurance salesman and a financial printer doing in the overnight delivery
business?" Douglas Schneider asks.
"I was a user of
overnight delivery," Rob Ukropina answers. And, from what he observed,
there was a niche to be had in the hyper-competitive delivery field that
includes household names such as UPS, FedEx, and Airborne Express, as well
as the U.S. Postal Service.
Ukropina opened
Irvine-based Overnite Express for business in 1992;
Schneider joined a year later.
With a pledge of 100
percent delivery service - their motto is "unmatched reliability" - there
is no room for error.
That is why at
Christmas time, company officials all the way up to the top do not
hesitate to hop aboard trucks to get the holiday parcels delivered on
time. That is why when Schneider's beeper went off one morning, he drove
to a broken down truck, picked up the goods, and made the delivery.
Getting package from point A to B is item one.
Ukropina is co-founder
and CEO for sales and marketing. Schneider is chief operating
officer/chief financial officer.
With more than 1,000
packages to deliver each day, the fast-growing firm continues to make
inroads in its specific corner among the giant delivers who have name
recognition to their advantage. |
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Everyone recognizes the ubiquitous UPS
trucks; people often use the ultimate compliment by turning the word FedEx
into a verb - "Let's FedEx it." - and the U.S.Postal Service is the
delivery system for America. The key for the Irvine company is to take a
certain segment of the 24-hour day and a clearly defined region:
Late-night pickup and early morning delivery within eight Southern
California counties. "We have a 13-hour
niche." Ukropina says. And a specific mission. As he explains there are
some 500 messenger companies in the region, but only a handful of
overnight delivery companies such as his.
"We start picking up,
in a sense, when (the competition) is done, because business doesn't stop
when they stop picking up."
The company is fueled
in part by the thirst to get packages from here to there.
"It's what's happening
in our lives," says Ukropina. "It's the Internet; it's the fax machine;
it's the voice mail. Everything is now."
The pair recently met
to talk about their company in the quiet of a business morning, long after
the last package had gone out with some 30 drivers to points north to
Santa Barbara and south to Imperial County. The sorting room had been
cleaned out - "It gets really wild from 10 p.m. to 2 a.m." Schneider says
- and phone calls were just now coming in for pickups.
The conference room
has framed the company's "core values" that include such phrases
as:"honesty, integrity and ethics in all aspects of business" and "the
unequivocal pursuit of quality and excellence" and "fanatical attention to
consistency and detail."
And the partners talk
the talk, as well. "Everyone is pulling in the same direction," Schneider
says.
"We all win together,"
echoes Ukropina. There is little elbowroom in the narrow,
2,200-square-foot office, brashly located next door to a FedEx office. But
with business booming, no one's surprised that space is tight. Ukropina
says that 1995 was the turning point in his company's growth and on a
Friday in late April, a record day for deliveries was reached.
The pair have been
longtime friends. Ukropina was raised in Pasadena and attended USC, where
he earned a business degree in marketing.
He says both sides of
his family have long been entrepreneurs, and that he caught the bug early
in life. He recalls setting up a running track in the neighborhood, charging
kids to enter, and handing out prizes. He sold avocados and fruit door
to door.
"I was always doing
something like that."
For a time, the 18-year
Orange County resident was regional president and CEO for Pandick Inc.,
one of the largest financial printers in the world.
When he decided to co-found
OVERNITE EXPRESS with a partner who has since left, he says he had a sense
there was room for what he wanted to do, but wasn't sure how big that
plot of business land would be. Or become.
First Question, who
to go after? "If a customer ships 99 percent out of Southern California,
they're not going to be a target for us. But if 99 percent stays within
Southern California, they'll be a real target."
Ukropina recalls the
three-month setup and the first packages that went out in the company's
fourth month of existence. "The first month, we did $1,000, 80 packages,
about four a day."
"We started with law
firms, and some were willing to give us a shot at it, and there was a
need. We knew they would always be working past 6 o'clock. Law firms gave
us the trial which built our business base initially."
Schneider's family traces
its Orange County roots back to the 19th century. He was born in Fullerton
and raised in Newport Beach.
"My mom and dad (Mildred
and Don) were part of the early pioneers who settled in Anaheim and Fullerton,"
he says.
Schneider attended Cal
Poly San Luis Obispo, was head of the business club on campus, served
as youth pastor in nearby Cambria, and graduated with a bachelor's degree
in business with a marketing concentration.
He owned a financial
and insurance services company for more than nine years.
"It's been a real great
partnership," he says. "We really get along well." Some adjustments have
been made. Schneider has a cancer that has limited his hours somewhat.
But, he says, not his motivation. "I'm still able to enjoy a successful
career."
A third partner, Philip
Nabal, is vice president, operations.
More than 150 drop-off
bins are available to customers and drivers also make numerous pickups
each night. The company's largest customer base are attorneys; with projects
wrapping up at, say 9 p.m., with delivery needed by, say 9 the next morning,
such a service is a necessity. A computerized system gets the package
properly labeled and placed on the right truck and drivers keep portable
radios so the main office can be in direct contact at any time, for whatever
reason. Often a client calls and asks, "How many minutes before my package
arrives."
The company's pledge
of 100 percent delivery is not as simple as labeling and driving the roads
and highways between eight Southern California counties. Sometimes the
sender gives the wrong address, or street, or high-rise floor. "Every
day," Ukropina says, "we correct about 5 percent of our packages. But
that's what we have built our business on, 100 percent delivery the next
morning."
For what they do, provide
the best customer service possible, they believe they are not prone to
the pressures of other industries where a competitor might find a better,
less-expensive way of doing business. "We're building this business through
a level of customer service that cannot be done by the larger overnights
because they have gotten too big." And the company promises low rates
in part because there are no costly airplanes to buy and maintain. The
lowest delivery rate is $6.00; early morning delivery service is several
dollars more.
Here's how a day in
the life of a package gets from here to there. From Ukropina: "Let's talk
about an advertising agency in downtown Los Angeles that has a presentation
tomorrow morning in San Diego at 9 o'clock and where their pickup is at
10 at night. They will have 15 boxes of brochures and flip charts and
a projector. The (boxes) will come here by midnight and be sorted and
then we'll have a driver who will leave here about 5 or 6 in the morning.
And it will get delivered to downtown San Diego before 9 o'clock."
The most unusual package?
An advertising agency that was working on an account for 412 McDonald's
in Southern California needed to send out a correction on a POG promotion.
"The advertising agency needed to get 412 boxes out that had new promotional
material in it," Ukropina says. "It had to get there the next day."
The pair say they have
no plans to try to grow OVERNITE EXPRESS into a billion-dollar company.
That's not the goal.
"Doug and I learned
a lot from the '80's with too much leverage and over expansion," Ukropina
says. "We're in this business to have a nice company for all of those
involved and produce a high level of service in a niche market."
"And we're not sitting
back in an ivory tower deciding where we're going to expand the next market."
"We want to have a balanced
life and quality of life personally is important too," says Schneider.
"We don't want the business to own us, we want to own the business."
Success is measured
in other ways.
As Schneider points
out, more and more deliveries are being made from one satisfied customer
to another. OVERNITE EXPRESS all the way.
He points to three keys
to success for the company:
"Core values, capital
and commitment."
Adds his partner: "And
tenacity."
By Craig Reem May 1,
1996
OC Metro
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