Warehouse Type Distinction Table
| Category | Feature | Dedicated Warehouse (Standalone) | Multi-Client Warehouse with Dedicated Cells | Shared / Public Warehouse |
|---|---|---|---|---|
| STRATEGY | Definition | Entire facility legally & operationally ring-fenced for one client. | Dedicated zone (fenced) within a larger multi-client facility. | No dedicated zones by client. |
| Ideal Clients | Enterprise Brands. High & very predictable volume (5k+ orders/day) and/or complex compliance needs. | Scaled Brands with incremental growth. Generally predictable volume (2k+ orders/day) and/or complex compliance needs. | Startups / Volatile Volume. <100 orders/day or highly seasonal "overflow." | |
| Contract Length | 3–7 Years | 1–3 Years | Month-to-month or <1 Year | |
| Sales Cycle | 12–36 Months (Strategic alignment, selection, MH Engineering, lease negotiation). |
9-18 Months (Fit-out of existing shell, MH Engineering, staffing planning). |
1–3 Months (Contract review, simple IT plug-in). |
|
| FINANCIALS | Cost Model | Management Fee + Expenses (Cost Plus). You pay for every lightbulb and hour worked. |
Hybrid. Minimum Fixed Fee (Space/Core Staff) + Variable Transaction Fees. |
Transactional. Activity-based pricing (per pallet, per order). No volume? No cost. |
| SLA Accountability | Gainshare / Painshare. 3PL profit margin is often tied to KPI performance. Missed goals = forfeited management fees. |
KPI Credits. Missed SLAs result in small invoice credits (e.g., 2–5% of monthly fees). It stings, but doesn't bleed. |
Best Efforts. SLOs are "targets." Financial penalties are rare or practically unenforceable unless failure is total. |
|
| Cost "Gotchas" | Facilities Mgmt. You are responsible for roof leaks, HVAC repair, and guard shack costs. |
Allocated Overhead. You pay a "shared overhead" % that is opaque and rises if other tenants leave. |
Accessorials. Low storage rates are subsidized by high "touch" fees (labeling, pallet in/out). |
|
| CapEx / MHE | Client Funded. Client pays for custom automation (AutoStore, conveyors) or amortizes it. |
Shared Backbone. 3PL owns sorters/conveyors; Client pays for cell-specific racking/carts/shipping stations. |
3PL Owned. Standard forklifts and pallet jacks only. No custom automation. |
|
| OPERATIONS | Closed Deal to First Shipment | 3 - 9 months depending on MHE build-out and IT Integration needs | 1 - 3 months depending on MHE build-out and IT Int | 1 - 15 days |
| Space Allocation | 100% Private (Walls & Docks). | Hybrid: Private picking/storage; Shared Docks, Breakrooms, Bathrooms. | 100% Shared | |
| Labor Model | Ring-Fenced Team. 100% dedicated staff. High brand retention. |
Core + Flex. Dedicated leads; "flex" staff borrowed from campus pool for peaks. |
Pooled Team. Staff moves to whichever client has volume that hour. Zero brand affinity. |
|
| Labor Risk (Peak) | High Cost Risk. You pay for idle hands if volume drops, but guaranteed capacity during peak. |
Contention Risk. Shared "flex" labor pool evaporates during macro-peaks (Q4). |
High Service Risk. You are the lowest priority; labor goes to anchor tenants first. |
|
| Dock Velocity | Unconstrained. You set the dock schedule. Immediate unload if you pay for the labor. |
Constrained. Shared docks mean appointment battles. Delays common during surges. |
Highly Constrained. First-come, first-served. Inbound often sits for 24–48+ hours. |
|
| Inventory Integrity (Shrink) | High Precision (Net Zero). Strict control allows for <0.1% shrink limits. Cycle counting is continuous and tailored. |
Standard Allowance. Typically capped at 0.5% of throughput. "Flex" labor increases error rates vs. dedicated teams. |
Low Precision. Higher shrink allowances (0.5%–1.0%). Reconciliations are often annual or quarterly, not daily. |
|
| Unboxing & Customization | Unlimited. Perfume sprays, handwritten notes, complex kitting, and 10+ box sizes are standard. |
Moderate. Branded tape/boxes are fine. Complex "high-touch" unboxing is discouraged due to labor training variance. |
None / Standard. Brown box, standard void fill, standard label. "Get it out the door" efficiency rules all. |
|
| Scaling Ability | Low. Expansion requires construction or new lease. "Locked in." |
Low to Moderate. Can expand "through the wall" into adjacent bays if available, space constrained if not. |
Moderate. Easy to add pallets, but capacity is subject to availability. |
|
| TECH / IT | WMS Ownership | Custom / Client Driven. Can use Client WMS or highly customized 3PL WMS. |
Client Driven / 3PL Standard. Larger Clients can bring their own WMS, Smaller Clients uses 3PL's WMS with client-specific logic enabled. |
3PL Standard (Fixed). Must use 3PL's WMS "out of the box." |
| IT Constraints | Low Constraint. You can demand custom code, custom integrations, or unique logic. |
High Constraint. Larger Clients on their WMS are fine, everyone else: configuration only (flags/switches). No custom code that breaks other tenants. |
Rigid. Zero customization. You must adapt your data to their flat-file specs. |
|
| ACCOUNT MGMT | Support Team Structure | Strategic Partner. Dedicated Account Director + On-site GM. You have their personal cell numbers. |
Account Manager (Shared). Dedicated CSM manages 3–5 accounts. Good responsiveness, but they split focus. |
Ticket / Helpdesk. Pool of support agents. No single point of contact. "Submit a ticket and wait." |
| Meeting Cadence | Weekly / Daily. Weekly QBRs, daily standups during peak. Deep integration between Brand and 3PL Front Office. |
Monthly / Bi-Weekly. Monthly KPI reviews. Bi-weekly tactical calls. |
Quarterly / Ad-hoc. Automated reports via email. Meetings only happen if something breaks. |
|
| Crisis Response | War Room. Ops team stays late until _your_problem is fixed. You are the priority. |
Prioritized Queue. You are "Tier 1" in the ticket system, but you wait if the Anchor Tenant has a fire. |
Standard Queue. First-in, first-out. No jumping the line during Black Friday. |
|
| EXAMPLES | 3PL Companies | Dedicated: DHL Supply Chain, Penske Logistics, XPO Logistics, J.B. Hunt, Ryder Solutions | Multi-Client Campus: GEODIS (Campus Model), Radial (Dedicated Cells), NFI Industries | Shared/Public: ShipBob, Red Stag Fulfillment, Ware2Go (UPS), Flexe, Stord |
| Brand Examples | Dedicated: Nike (DHL, Europe & Brazil), Apple (Custom 3PL networks), Enterprise furniture/mattress brands | Multi-Client Campus: Tecovas (GEODIS Dallas), Fashion brands (Radial: Express, Calvin Klein, Tommy Hilfiger, Gymshark, TaylorMade) | Shared/Public: Allbirds (ShipBob), Emerging DTC Brands (Everlane, Supergoop), Seasonal/Volatile brands (Yelle Skincare on Ware2Go) |
see also:
- Warehouse Type Distinction Table v3
- Warehouse Type Distinction Table v2
- Warehouse Type Distinction Table v1
https://phasev.com/blog/top-global-3pl-logistics-companies/ ↩︎
https://www.3plogistics.com/3pl-market-info-resources/3pl-market-information/aas-top-50-u-s-third-party-logistics-providers-3pls-list/ ↩︎
https://partner3pl.com/location/united-states/texas/travis-county/ ↩︎
https://www.speedcommerce.com/3rd-party-logistics/3pl-companies-usa/ ↩︎
https://www.fulfill.com/3pl/location/texas?6a642248_page=4\&e8a0387f_page=5 ↩︎
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https://www.dematic.com/en-us/insights/case-studies/radial-groningen-netherlands/ ↩︎
https://postandparcel.info/23865/news/dhl-hit-the-ground-running-with-new-nike-deal/ ↩︎
https://www.dallasmarketcenter.com/press-room/tecovas-announces-entry-into-wholesale-with-first-showroom-at-dallas-market-center/ ↩︎
https://pipe17.com/customer/radial-3pl-onboarding-18-weeks-to-1-week/ ↩︎
https://www.linkedin.com/pulse/nikes-eu-logistics-campus-sustainable-supply-chain-powerhouse-ilyas-66rnc ↩︎
https://www.allbirds.com/pages/help?a=Where-do-you-ship---id--As4C4l8KQMWcft-XQ_n9TA ↩︎
https://www.shipfusion.com/blog/best-3pl-services-in-the-usa ↩︎
https://racklify.com/news/top-25-warehousing-3pl-services-dallas/ ↩︎
https://www.mapquest.com/us/california/dhl-nike-distribution-center-467623931 ↩︎
https://networkon.io/resources/blog/best-logistics-services-companies/ ↩︎
https://geodis.com/us-en/agency/geodis-contract-logistics-63 ↩︎
https://www.radial.com/eur/insights/how-technology-is-redefining-fashion-and-apparel-fulfillment ↩︎
https://www.dhl.com/us-en/home/supply-chain/solutions/warehousing.html ↩︎
https://www.cnbc.com/2019/11/29/the-direct-to-consumer-strategy-is-making-a-run-at-amazons-throne.html ↩︎
https://www.camcode.com/blog/top-20-3pl-warehouse-companies/ ↩︎
https://geodis.com/us-en/warehousing-and-value-added-logistics ↩︎
https://www.logisticsmgmt.com/article/top_50_third_party_logistics_3pls_providers_2024_not_out_of_the_woods ↩︎
https://geodis.com/us-en/warehousing-and-value-added-logistics/fulfillment-and-omnichannel-logistics ↩︎