How Relay Distribution Scaled with ASRS Automation and Social Strategy

Kevin chats with Dereck Dreyer, co-founder of Relay Distribution, for a behind-the-scenes look at how this Houston-based 3PL is blending fulfillment, influencer marketing, and automation to build a nimble, high-growth operation. The episode explores Relay’s evolution from an apparel startup to a turnkey fulfillment center, how their YouTube channel unexpectedly became a lead generation engine, and the impact of installing Pio’s automated storage and retrieval system (ASRS). 

From managing launch-driven order spikes to navigating tariff changes with Chinese suppliers, Dreyer shares the real-world challenges and wins that come with building a modern fulfillment business.

Building a 3PL for the Influencer Economy

Relay Distribution was born out of firsthand experience in scaling eCommerce fitness and apparel brands. Dreyer and his co-founder, Daniel Hoang, launched Relay to solve their own warehousing needs, and quickly realized that others had similar problems.

They took a unique approach to growth: documenting their journey on YouTube. “Our main initiative when we started was… we wanted to help these influencers, social media companies… We felt like the best way to do that would be to vlog and start our own YouTube channel as a 3PL.”

This raw, transparent strategy struck a chord. Brands searching for a relatable, modern 3PL often discovered Relay on YouTube, drawn in by their openness and experience with launch-based order spikes.

Still, Dreyer noted a common pitfall: “We bring them in, they launch, and then it’s like nothing that they projected at all.”  The team emphasizes partnership and realistic planning—recognizing that not every influencer has a winning product from the outset. “We view every client as a partner in their customer journey—and because we’ve owned our own brands, we don’t take that lightly.”

ASRS Automation for Throughput and Space Efficiency

Relay’s rapid growth forced them to rethink space constraints in their 20,000-square-foot warehouse. That’s when they entered a giveaway hosted by Pio and won an ASRS system that transformed their operations.

The Pio system, which occupies just 500 sq. ft., allowed Relay to consolidate inventory that previously took up 3,000 sq. ft. “We have about 4,500 SKUs in it right now, and it works amazingly for high-SKU clients like clothing brands.”

The impact on throughput was just as significant. Manual picking averaged 50–55 order lines per hour, but with Pio’s automation, they’re hitting 100–150—and sometimes more.

“It pretty much is your picker, right? You only need a packer operating it. The robots are your pickers… kind of no downtime.” Beyond labor savings, the system reduced mispicks and improved inventory accuracy, especially for single-SKU returns that previously caused inefficiencies.

Diversifying Through Product Development and Strategic Partnerships

With a background in product manufacturing, Relay has evolved into more than a 3PL. The team now supports clients with product development, manufacturing, and even content creation—including an in-house photo/video studio.

“We saw an opportunity… how can we stand out outside of the other 3PLs? And it’s offering these added services.” They’ve partnered with suppliers in China and responded to changing tariff landscapes by advising clients on sourcing strategies and customs compliance.

They’re also preparing to launch a brand on Shein, giving them even more insight into global fulfillment strategies. Looking ahead, Relay plans to add more automation and is targeting two to three more years in its current warehouse by continuing to maximize every square foot.

Key Takeaways

• Relay Distribution grew by blending fulfillment expertise with social strategy—most new clients discover them through YouTube.
• Influencer-led product launches are unpredictable, so Relay emphasizes the importance of forecasting, planning, and open communication.
• Pio’s ASRS solution helped Relay double throughput and shrink 3,000 sq. ft. of inventory into just 500 sq. ft. of space.
• Their most productive packers now reach 100–150 lines/hour, compared to 50–55 lines per hour manually.
• Added services, such as product development and content creation, help differentiate Relay in a crowded 3PL market.
• Strong ties with Chinese suppliers allow them to provide real-time tariff insights and sourcing flexibility.
• Future growth will rely on ASRS automation and creative partnerships to maintain scalability within a limited footprint.

Listen to the episode below and leave your thoughts in the comments.

Want to see what it’s like to use the Pio system? Kevin got a chance to use it while on site at Relay. Check it out in the video above!

Guest Information

For more information on Relay Distribution, click here.

To connect with Dereck on LinkedIn, click here.

For more information on ASRS automation, check out the podcasts below. 

MHI Industry Group Series: Automated Storage and Retrieval Systems (ASRS)

506: Automated Storage and Retrieval Systems (ASRS) with Element Logic

Warehouse Density Gains: Live from ProMat with Wize Solutions