How to Save Money on Logistics

by Michael Kotendzhi | Logistics
How to Save Money on Logistics

Reduces cost per order

A 3PL can provide a lower cost per order.  A 3PL facilities allows cost justification of:

  • WMS
  • voice picking
  • automated sortation
  • conveyance systems

Lower capital investment

  • The right 3PL partner can help your company save on costs associated with opening your own facilty and investing in multi-functional technology platforms and WMS systems.

Changes fixed costs to variable costs

  • By utilizing a 3PL you can move from heavy fixed costs to flexible variable costs by paying per piece or transaction.
  • Variation is cost is based on the usage of product storage space and services for orders and returns.

Reduce transportation costs

  • Reduce transportation costs by leveraging the buying power of the 3PL warehouse that is sourcing transportation for a pool of shippers.

Focus resources and efforts

  • Utilizing a 3PL allows you to focus on your company's products, helping you to grow your business faster.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.