Reproduced with permission of the Journal Star and PJStar.com
 

The route to success

Central Illinois Courier has proven naysayers wrong with decade of growth

Tuesday, November 27, 2007

By STEVE TARTER
of the Journal Star

PEORIA - The only thing the Central Illinois Courier has in common with a newspaper is that it delivers.

"We have to tell people all the time: We're not the newspaper," said co-owner Ray Arnold at the firm's East Peoria office, 2901 N. Main St.

Arnold and wife Kathleen came up with the Courier name when the couple founded the delivery company in 1997 with a single truck. Today they employ 50 people - full and part time - with a fleet of 20 vehicles.

The Arnolds made the business succeed despite warnings that they were undercapitalized and overmatched by the competition, he said. "They told us that we wouldn't make it, that we didn't have enough money or resources. As usual, I didn't listen," said Ray Arnold.

A 25-year employee of the Pony Express delivery company, Ray Arnold, 56, felt he knew the business. Things really started picking up when Madison-based Lanter Delivery Systems approached the Arnolds to handle area deliveries that included parts for agriculture equipment giant John Deere.

"That meant emergency runs at night, delivering parts," he said. Later, the Courier took over Lanter's area routes completely, he said.

"We built our own business into their route structure," said Ray, noting the company's growth came by word of mouth.

In those early days, both Arnolds were hands-on owners, taking orders, answering the phone and making deliveries. Kathleen Arnold still occasionally gets behind the wheel of one of the company trucks when needed, she said.

Courier deliveries run the gamut, said Ray. "We deliver machine parts, pharmaceuticals, office supplies, auto parts and documents, among other things," he said.

Sometimes those deliveries are anything but routine, said Ray. "We delivered a Caterpillar fan blade to New Mexico for a mining operation. They couldn't wait for it. They were ripping open that package before it got off the truck," he said.

The locally owned Courier not only survives in a world dominated by huge carriers such as UPS and FedEx, but it continues to grow, said Ray, noting annual sales will be about $2 million this year.

"We have our niche. You can't get a semi truck everywhere. But our 15-foot box truck gets just about anywhere. We fill that gap between the big trucks and the customer. There's always a need for the little guy like us," he said.

Business prospects look promising, he added. "More goods are being delivered than ever. We all want everything yesterday," he said.

Kathleen, 53, said rising warehousing costs often motivate shippers to keep goods moving.

Modern inventory methods also help the small shipper, said Ray. "With so many companies using just-in-time delivery systems, you'd be surprised at how low some firms will get on supplies before that delivery arrives," he said.

The company instituted a fuel surcharge two years ago even though Ray said he resisted it for some time. "I didn't want to do it, but when fuel started going up, I had no choice," he said.

Despite the surcharges, the rising price of gas has affected the Courier's bottom line, he said. "Fuel charges have drastically cut into our profits," he added.

While the delivery business has fallen off among area banks - no longer big customers now that most banking records are moved electronically - there's a new category on the rise: At-home businesses, said Kathleen.

The holiday season means plenty of deliveries but can also pose problems, said Ray. "Weather can be an issue, plus there's the matter of traffic around the stores, places that we're trying to deliver something to," he said.

Customer service remains a priority for the company, said Kathleen. "We listen to anything a customer might need," she said.

But that doesn't mean that anything goes, added Ray. "I don't want to get into the semi market, and we won't pick up hazardous materials," he said.

The Courier but will occasionally turn down some requests, Ray said. "We're not going to deliver a six-pack or a carton of cigarettes for an individual," he said.

Business Blueprint is a regular feature that focuses on small businesses in the Peoria area. If your company has an interesting story to tell and has been in business at least a year, write to us at Business Blueprint, Peoria Journal Star, 1 News Plaza, Peoria IL 61643.

Steve Tarter can be reached at 686-3260 or starter@pjstar.com.