With new name, Streamlite eyes bigger business
The former Global MailExpress, a shipping company headquartered near Atlanta's Hartsfield-Jackson International Airport, had just one problem with its name.
Or three.
The company, now called Streamlite Inc., shipped only in the United States. It wasn't a mail company. And, with a five-day guarantee, it certainly wasn't an express carrier.
With the new name, president and CEO Randy Clark said, the company is better able to define itself -- and its market.
The five-year-old company ships only items that weigh five or fewer pounds and tracks them, guaranteeing they'll arrive within five days. While Streamlite started by sending prospectuses, Clark said the bulk of its shipments now are pharmaceuticals and lightweight online purchases.
"We love where we are. We're well-positioned," Clark said. "It's a bulls-eye for us. People don't want to spend a lot for shipping, but they are buying more."
Randy Schmitz, vice president of operations for Minneapolis-area Skybridge Marketing Group, said that company has worked with Streamlite for two years. The partnership began, Schmitz said, when the United States Postal Service changed its rules to eliminate a discount Skybridge had earned when shipping its promotional materials.
By working with Streamlite, Skybridge is saving 15 to 20 percent on freight, Schmitz said.
"Now we just throw it into a big gaylord [shipping box]," he said, and Streamlite handles all the labor.
Clark said Streamlite keeps the costs low for companies that ship with it by contracting with an express carrier to transport goods and delivering through the postal service. The company, which Clark described as asset-light, does not employ its own drivers. It has about 200 full-time employees and up to 1,000 contracted workers who sort packages.
What the company does have are 20 nationwide distribution centers, where packages go in and out. They are picked up directly from Streamlite's 150 customers, taken to the closest distribution center, then transported to another regional distribution center where they are divided by ZIP code and taken to a local post office for delivery.
The network is set, Clark said, but there is room for expansion or more employees as Streamlite grows. He expects revenue to continue to increase -- he expects it to be $150 million in 2010 -- and is planning for an eventual initial public offering for the company.
Schmitz said he thinks there is room for Streamlite to envision an IPO, which would give the company more capital to expand its business. In August, Streamlite received $10 million from various investors.
As people become more apt to buy CDs, books or shampoo online, Clark said, they are less willing to pay high shipping costs for their purchases. At the same time, their purchases are important, whether they are maintenance medications or the latest best-seller.
"There's a definite need in today's world for a high quality and low-cost carrier," he said. "We get it in the mailbox, so people feel secure. We deliver on Saturdays and to P.O. boxes. People feel very comfortable about it."
About the Author
Arielle Kass covers Gwinnett County for The Atlanta Journal-Constitution. She started at the paper in 2010, and has covered business and local government beats around metro Atlanta. Arielle is a graduate of Emory University.
