Private vs. Dedicated Fleet

by Michael Kotendzhi | Trucking, Logistics

Often times growing companies wonder whether it’s best to manage their transportation through a private fleet or to partner with a provider that can supply dedicated transportation services. We’ll be taking a look into both these options to understand their benefits and capabilities.

A private fleet is when a company is essentially creating its own transportation company to handle all distribution. This means the company will lease its own equipment and hire personnel with the advantages of scalability and control in mind. In contrast, a dedicated trucking service is when a company will hire a 3PL provider to manage all distribution services.

One big downfall of a private fleet is its unforeseen costs. There’s a multitude of investments that must be made in order to have a private fleet such as ELD systems, insurance, equipment leasing/purchasing, maintenance, driver hiring and training, and much more. In contrast, a dedicated fleet has already handled all the variables and will charge a flat rate to cover your unique volume and requirements. Furthermore, a dedicated fleet service contract allows for periodic adjustments or renegotiations to account for volume shifts. This is easier to manage than to undo or increase your private fleet operation if your volume doesn’t match up.

Located in Vancouver, British Columbia, 18 Wheels Logistics can handle all your dedicated trucking needs in addition to co-packing and warehousing. We can help your company acquire the flexibility and reliability in order to grow your business and cultivate success. 

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.