A Comparative Analysis of 3PL Warehousing vs. Traditional Warehousing
Now more than ever, businesses have options when it comes to warehousing. Traditionally, businesses had to manage an entire warehouse by themselves or work with a dedicated team to manage their storage and distribution needs. This option was only available to large corporations, as the costs were incredibly high.
This all changed with the advent of 3PL warehousing, which is when businesses partner with a warehouse that serves multiple clients. Since its inception, 3PL warehousing has become incredibly popular across the globe for all businesses, as it provides significantly more flexibility, value-added services, and lower costs.
With that said, both warehousing options are still used to this day, and the correct choice for your business depends on a few factors.
Traditional vs 3PL - Which is Best?
Having a traditional warehouse is a good option for large businesses that want to manage most aspects of storage and distribution in-house. A dedicated warehouse gives you total control over warehouse operations, which helps you adjust how things are stored, packed, and shipped.
A 3PL warehouse is a great option for businesses needing scalability and flexibility. Instead of being locked into a long-term contract, 3PL warehouses often use a pay-as-you-go plan, allowing you to change and add services as needed.
Another benefit of working with a 3PL warehouse is the experience they provide. Instead of having to manage a full team of warehouse staff, you leverage an existing and fully trained staff to your immediate benefit.
The Right Choice Can Save You Thousands Each Month
Choosing between the two types of warehouse options can be challenging, but it is important to do a detailed analysis of your needs and requirements.
If you intend to run a large-scale logistics operation from a singular location, choosing a dedicated warehouse option is often the correct choice. However, if you want to have multiple distribution centers, scalable services, and flexible storage rates, 3PL warehousing is the better option.
At 18 Wheels Logistics, we offer both dedicated and 3PL warehousing, giving us the knowledge needed to help businesses make the correct warehousing choice. Whether you are interested in dedicated or 3PL services, our team can help you find the best solution.
For over 30 years, 18 Wheels Logistics has strived to be the most customer-centric trucking, warehousing, and logistics company around. Based in Vancouver, British Columbia, Canada, 18 Wheels relies on experience and integrity to make customers happy and remain on the cutting edge of shipping and logistics management.
If you have any questions about this article or you would like to talk to us about your shipping needs, please call us at (604) 439-8938.