The Assets In Newly Established 3PL Industry

by Michael Kotendzhi | Logistics

Many have wondered if a healthy 3PL should remain sustainable if it rules out the asset-owning perspective. Because in most aspects of life, people like to own assets and that is the most common knowledge on how to sustain the businesses. However, in the new age, 3PL is desired to be non-asset acquired. Why? Because it is easy to establish and low maintenances, of course. Especially when all costs are staggering high in Vancouver, British Columbia. 

However, there must be some businesses that own all the trucks, equipment, warehouse spaces, computers, and all related assets in supply chains. Then the topic moves on to the next stage to the asset-based 3PL providers to take the industry to the next level.

For example, Amazon is the best example amongst this pandemic. It is 100% sure Amazon is making historical figures when the city locks down and no malls or retails are open for consumers. From the surface, Amazon does not own any retails and it acts almost like a non-asset service provider.

On the other hand, what about all the distribution centers and all the automation behind the scenes?

Up to date, Amazon declares it has more than 110 fulfillment centers just in the USA and 185 centers globally. Each center is around 800,000 square feet that employs more than 1,500 full-time associates, not to mention the drivers on the road. Since March 2020 after Vancouver and Toronto subsequently in lockdowns, then Amazon starts outsourcing the logistics to partner up with 3PL deliveries due to overwhelming businesses and inaccessible areas.

Yes, Amazon is an asset-owning 3PL and becomes the giant of this concept.

As well as 18 Wheels Logistics, our team members can provide you with all logistics needs across Canada and the USA. Whether it is outsourcing your transportationwarehousingcopacking, or trucking, we are the one-line source stop for you. 

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.