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Integrated Distribution Center Management and Dedicated Transportation Drive Value for Customers

December 16, 2021
Article

Integrated Distribution Center Management and Dedicated Transportation Drive Value for Customers

Improve communications, reduce supply chain complexity, increase inventory velocity and save money.

Improve communications, reduce supply chain complexity, increase inventory velocity and save money.

Covenant combines distribution center management and dedicated transportation services to provide logistics solutions that provide unique value-add solutions for customers. Using an integrated approach, the company partners with customers to improve communications, reduce supply chain complexity, increase inventory velocity and save money.  

For some 35 years Covenant has built its reputation as a trusted, reliable transportation and logistics services provider. The company has a strong driver network and dedicated contract carriage fleet of about 1,500 tractors and an expedited trucking fleet of 750 tractors and about 1,500 team drivers. 

In recent years, Covenant has expanded into more comprehensive 3PL logistics services through its acquisition of Landair. Today, Covenant manages 15 distribution centers throughout the country ranging in size from 150,000 to 500,000 square feet for customers in the consumer products, food and beverage, industrial, manufacturing, durable goods and retail industries. 

“What we hear consistently from our customers is their appreciation for our ability to customize what we do to match their needs and overall strategic goals,” said Matt Anderson, Covenant senior vice president of sales and marketing. “Applying Lean Sigma principles and discipline, we drill into the Key Performance Indicators (KPIs) that are critical for a customer’s operation, and then measure, manage and improve them so that the customer realizes the benefit and gains value.” 

Connecting Distribution Center Management with Transportation

The partnership with one of Covenant’s customers, a national pet food company, started with a one-way truckload service and quickly grew to include shuttle and spotting services.  As the relationship deepened, Covenant worked collaboratively with its customer to develop its first temperature-controlled raw material warehouse supporting just-in-time deliveries to the manufacturing operation.  eliminate complexity and create a data-driven, value-based logistics solution leading to the  

“The interaction we had with the customer on a partnership basis allowed us to demonstrate our capabilities by responding to and providing solutions that really went beyond the scope of the of the operation, said Anderson.The benefit of having a strong onsite manager overseeing the shuttle and spotting operation allowed us to share management infrastructure and overhead and provide a more cost-effective solution,”

The previous operation design involved several logistics providers, and was inherently inefficient because multiple parties had to get engaged to manage the flow of communication and the prioritization of orders. 

“When we were given the full solution, all that noise – the breakdowns or disconnects which created a lot of frustration – immediately went away,” said EJ Johnson, Covenant vice president of dedicated carrier operations. “We had better visibility into what orders were coming. We knew when there was a priority to get certain product into the manufacturing facility to make sure the line didn’t shut down.”  

Partnership Drive Cost Savings

Covenant staff members participate in daily production meetings with the pet food manufacturer to better understand their needs and demands on the supply chain. 

“With us they have one point of contact from an operational and account management perspective,” Johnson said. “Because of that, I would tell you the operation is more responsive.”

Close coordination is essential particularly when it comes to managing the dedicated trucking fleet from a capacity and service standpoint. In recent years, large retailers have imposed fines on carriers for not meeting delivery windows and certain service standards. 

“Our Dedicated Fleet has been one of the top performing carriers across the entire network for more than two years,” said Johnson. “the consistent service levels and responsiveness through the operation have resulted in high levels of confidence and trust in our performance. The high quality service of the dedicated fleet has resulted in reduced fines, which has been a real success story for our customer.”

Start Your Rewarding Relationship with Covenant

If you are experiencing disconnects between the transportation and warehousing functions in your supply chain and want a scalable, adaptive, customized logistics solution centered around your business, strategy and vision, Covenant wants to talk to you. Connect with us below. 

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