In the building materials distribution world, logistics is mission-critical. It’s what gets products to the jobsite on time, keeps contractors happy, and protects margin. But as operations scale, leaders often face a difficult choice:
Should you manage logistics in-house—or outsource it to a third-party provider?
This case study walks through how one building supply distributor evaluated, tested, and ultimately decided on the best logistics model for its business—and what you can learn from their experience.
The Company: Regional Building Supply (RBS)
Overview:
A mid-sized building materials distributor with 6 branches across 3 states
Products: Lumber, drywall, roofing, and specialty fasteners
Contractor-focused, with 75% of orders delivered to jobsites
Operating its own fleet of 30 trucks, 7 days a week
The Challenge: Scaling Logistics With Rising Costs
As RBS expanded into a new metro area, leadership faced mounting challenges:
Fuel, insurance, and fleet maintenance costs were rising
Driver shortages were leading to missed deliveries
Jobsite delays and reschedules were causing inefficient routing
New markets had different delivery expectations and zoning restrictions
They realized their current in-house model might not scale efficiently—and it was time to ask a hard question: Outsource or invest further in logistics infrastructure?
The Approach: Pilot Test Both Models
RBS decided not to guess—they tested both models in parallel.
In-House (Control Branch A):
Retained their own drivers and vehicles
Added a dispatcher for improved routing
Installed GPS tracking for delivery visibility
Invested in fleet maintenance upgrades
Outsourced (Test Branch B):
Partnered with a regional third-party logistics (3PL) provider
Shared daily delivery windows, materials specs, and contractor contacts
Integrated order tracking with their ERP for customer transparency
Paid per stop with fuel surcharge clauses
The Metrics Tracked:
On-time delivery rate
Cost per delivery
Contractor satisfaction (NPS)
Delivery error rate
Driver turnover and reliability
Flexibility for same-day or emergency jobs
The Results (90-Day Pilot)
MetricIn-House (Branch A)Outsourced (Branch B)
On-Time Delivery Rate89%95%
Cost per Delivery$92$85
Delivery Errors4.5%2.1%
Contractor Satisfaction NPS6278
Flexibility for Same-DayModerateHigh
Internal Management OverheadHighLow
Key Insights:
✅ Outsourcing Worked Better for Urban and High-Volume Routes
The 3PL provider had route density, professional dispatching, and better access to urban locations—delivering faster and cheaper than RBS’s in-house fleet.
✅ In-House Performed Better for Complex Jobsite Coordination
On large residential projects where drivers needed to be familiar with jobsite nuances and staging, in-house teams offered more consistency and direct communication.
✅ ERP Integration Was Crucial Either Way
Outsourced logistics only worked because RBS integrated the 3PL into their ERP, allowing for tracking, proof of delivery, and issue resolution in real time.
✅ Labor Reliability Was a Deciding Factor
Outsourcing helped avoid driver hiring and retention challenges, especially in newer markets where RBS lacked brand recognition or recruiting networks.
The Final Decision: A Hybrid Model
RBS adopted a hybrid approach moving forward:
Urban markets and overflow capacity: Outsourced to vetted 3PLs
Rural and high-touch deliveries: Retained in-house fleet
Emergency/expedited jobs: Split based on availability and delivery zone
Shared KPIs and service standards: Across both models for consistency
Conclusion: There’s No One-Size-Fits-All
The RBS case study shows that the “right” logistics model depends on:
Your customer expectations
Route density and geography
Cost structure and fleet capability
Internal logistics expertise
Scalability needs as you grow
Outsourcing isn’t always cheaper. In-house isn’t always better. But data, pilot testing, and flexibility will help you choose the model that supports service excellence and profitability.
