Milrab - From in-house warehouse to outsourcing
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Milrab is a leading online store for sports, outdoor, and tactical equipment. The company has, among other things, won the prestigious award as Online Store of the Year, and has since its start in 2011 had an impressive growth journey. Milrab has handled logistics in-house through its own warehouse, automation, and personnel.
During the pandemic years, the sports industry's revenue increased by 21%. The players responded to the demand growth by ordering more goods. However, after the pandemic years, demand has slowed down, and inventory levels have built up. In combination with a weak currency and high inflation, cost-effectiveness has become a central keyword.
As a response to challenging market conditions, Milrab has adapted by shifting from a mainly fixed cost base to a more variable base. By outsourcing to 360 Logistics, Milrab pays for what they actually consume at any given time; that is, for each warehouse location used, each order shipped, or each order returned. This also means that Milrab avoids paying for any unused capacity.
Vegard Sunde, Director of Business Development, explains...
We had to adapt to a more unpredictable everyday life. During the pandemic years, investments were made for further growth. When market conditions changed, it was important to take a step back and assess how we could position ourselves in the short term and simultaneously prepare for growth in the future. The choice was therefore to outsource, and for us, 360 Logistics was a natural choice with their focus on efficiency and quality.
Gustav Jebsen, CEO of 360 Logistics, summarizes:
Milrab is a recognized and sought-after brand among Norwegian consumers, and contributes to confirming 360 Logistics as the leading Norwegian logistics partner among e-commerce companies and brands. Milrab is professional and sets high demands for quality. This contributes to us always having to strive to become even better.
Milrab's adaptable organization makes the company stand strong regardless of market conditions, while the organization can focus on its core business.
