Case Study

How Covenant Helped This World-Wide Client Save Over $105k During the First Year of the Relationship

When this worldwide tractor brand needed a logistics partner to provide creative, flexible, reliable solutions across many aspects of their manufacturing company, Covenant answered.

The Overview

When this worldwide tractor brand needed a logistics partner to provide creative, flexible, reliable solutions across many aspects of their manufacturing company, Covenant heard the call and answered. They needed a partner that could provide dedicated contract carriage as well as warehousing services and someone that had the flexibility to do even more if the need arose. They requested a contract to develop a consistent, cost-effective transportation and inventory management solution for all inbound parts. With closing 2020 with 304,066 units sold, that is a lot of inbound parts. 

The Challenge

Every logistics solution presents its challenges. When the demand for your product ebbs and flows, so will the need for moving your cargo, storing your cargo, shuttling your cargo, and more. Part of the challenge for this client included seasonal fluctuations and the need to provide matching inbound/outbound shipments. Along with this, they needed support shuttling the products from their warehouses to their factories, and it all needed to be done in a way that supported the manufacturing cycle time. Combining that with their need to repackage products for distribution within their warehouse, we knew that Covenant was up to the challenge. 

Characteristics

  • Provides essential farming equipment all over the world
  • Onsite manuf. Support
  • Repackaging of products

Expectations

  • High quality control and management
  • Integrated DCM & shuttle operation
  • Cloud-based, real-time metrics & reporting
  • Process control

The Solution

Dedicated Support: 

  • Greenville, TN –5 Trucks/40 Trailers
  • Horicon, WI –12 Trucks/36 Trailers
  • Benson, NC –8 Trucks/32 Trailers

Brokerage Pop-up Support:

  • 8 Trucks/32 Trailers (services multiple factories, depending on surge needs)

Drayage Support

  • Greenville, TN to Greer, SC –50 to 100 container moves per week (during surge)

One-Way Contractual & ADHOC support out of:

  • Benson, NC
  • Greenville, TN
  • Grovetown, GA

Warehouse Support: 

  • 150,000 sq. ft. warehouse in Greenville, TN

Value Add Services:

  • Repackaging of products for distribution
  • Vendor management & processing
  • Rework of products at the warehouse to eliminate additional freight cost

The Results

Covenant addressed the client’s total requirements by deploying a variety of equipment, including trucks and team trucks, trailers, tractors, and day cabs. The company also leveraged a 150,000 SQFT warehouse, staffed by 14 associates who worked tirelessly to ensure proper inventory management. In the first year of operations, the client realized $105,000 in savings and benefitted from consistent, on-time performance.

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