Summary
A well-established national bakery company operated a localized shuttle fleet of four to five trucks to transport ingredients and finished products between its regional production and distribution facilities. While the operation had served its purpose for years, the company was beginning to feel the pressure of several persistent challenges.
Managing an in-house fleet meant bearing the full weight of liability, compliance, and insurance costs—an increasingly risky and expensive undertaking. Their trucks were aging, leading to more frequent breakdowns, rising maintenance costs, and unpredictable downtime that impacted production and delivery schedules. Driver turnover was another growing concern; replacing drivers in a tight labor market was time-consuming and costly, especially for a bakery operating on tight timelines and delivery windows.
Additionally, the company was locked into long-term leases for both tractors and trailers, limiting flexibility and tying up capital in equipment that no longer served its operational goals. These compounding costs—both financial and operational—prompted leadership to look for a smarter, more sustainable alternative. What they needed was a strategic partner who could reduce their exposure, take over the day-to-day transportation demands, and deliver consistent service without the burden of fleet ownership.
Challenges
Before Covenant’s involvement, the distribution center was:
• Managing liability associated with operating a private fleet
• Dealing with aging equipment that required frequent maintenance
• Experiencing driver turnover and struggling to backfill roles quickly
• Locked into equipment leases that were difficult to exit
• Operating leased trailers that lacked flexibility
• Needing to maintain internal oversight of transportation operations
The Covenant Solution
Covenant’s approach was holistic, fast, and centered on long-term success. Key steps included:
• Fully converted the private fleet to a dedicated contract carriage model
• Hired 100% of the customer’s existing drivers to ensure a seamless transition
• Bought out the existing truck leases and partnered with TEL to resell the equipment
• Replaced the customer’s leased trailers with Covenant-managed trailers
• Provided flexible driver support by dispatching additional drivers when needed
• Assumed operational and administrative responsibilities, allowing the customer to focus on core priorities
Results
Now operating successfully for over two years, the converted fleet has delivered measurable improvements in operational reliability and peace of mind for the customer. By outsourcing the complexity of fleet management, the company has been able to refocus its internal resources on core manufacturing priorities. Today, with a more agile and scalable logistics solution in place, the bakery is better positioned to handle seasonal spikes, expand into new markets, and pursue growth without being constrained by fleet limitations.
Conclusion
Through a thoughtful and flexible approach, Covenant Logistics transformed a liability-laden, in-house operation into a streamlined, scalable fleet solution. This
partnership continues to evolve, driven by a shared commitment to long-term value and operational excellence.
Ready to Convert Your Private Fleet?
Let’s talk. If you're exploring dedicated solutions that reduce liability, improve driver retention, and streamline operations—connect with a Covenant expert today.
