The Difference Between Shared and Dedicated Warehouse Services

by Michael Kotendzhi | Warehousing

Once your company is ready to outsource warehousing operations to a 3PL it’s important to determine what type of warehousing needs you require. This will dictate whether you would move forward with a dedicated or shared warehouse service.

In shared warehousing, your companies’ operations are one of several that use the 3PL’s resources such as the space, employees, systems and equipment. In this type of warehousing, you would pay for the resources that your business requires in addition to the overhead costs that are included in the rate. This type of service is usually ideal for companies whose service and space needs can shift, for those who store less than 5,000 pallets, or those who aren’t ready to fully commit to a dedicated model.

On the other hand, dedicated warehousing, also called contract warehousing, is when you would hire a 3PL to manage your warehousing operations with a facility typically dedicated to your business alone. In this service, almost every facet of the operation can be tailored to fit your specific needs. Dedicated warehousing is best for larger companies with a high volume of activity, require a specific location for ideal distribution, and/or want lower operational costs with an experienced 3PL partner.

​Here at 18 Wheels Logistics, based in Vancouver, British Columbia, we offer both of these services and have a team ready to help you find the right fit for your company. You can rely on us to be the best single source solution for all your transportation, 3PL, trucking, and co-packing needs. 

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.