Customer Overview
A longstanding customer in the consumables sector, operating a mixed fleet of private and outsourced trucks, faced operational inefficiencies and unanticipated costs. Their business model required accepting orders as late as 6 p.m. and delivering custom, just-in-time products by the next morning—demanding speed, flexibility, and precision.
The Challenge
The customer’s internal transportation model lacked cohesion and predictability:
• A fragmented fleet created coordination and coverage issues.
• Hidden costs associated with equipment maintenance, downtime, and driver turnover were eroding profitability.
• Inconsistent communication with delivery points and missed service windows strained customer relationships.
• Their yard operations were congested, inefficient, and had mounting safety concerns.
Covenant’s Dedicated Solution
Covenant Logistics designed a custom dedicated contract carriage (DCC) solution after deeply understanding the customer’s unique business pressures and operational gaps.
Key Actions:
• Fleet Consolidation: Integrated solo and team drivers under one dedicated structure to streamline operations.
• Proactive Peak Planning: Built in scalable capacity to support seasonal and unforeseen demand spikes.
• Onsite Presence: Embedded a dedicated Covenant team member at the customer’s location for real-time problem-solving.
• Yard Optimization: Brought in yard management experts to redesign flow, reduce congestion, and enhance safety.
• Cross-Functional Collaboration: Tapped into Covenant’s brokerage and expedited teams for broader support.
• Tech-Driven Efficiency: Deployed new equipment with advanced MPG monitoring and maintenance tracking to reduce costs and downtime.
Results
The partnership delivered measurable results across the board. By consolidating the fleet and centralizing operations under Covenant’s dedicated solution, the customer significantly reduced hidden costs tied to equipment maintenance, safety, and driver recruitment. Operational efficiency improved as Covenant absorbed internal calls and redundant administrative tasks, freeing up valuable time for the customer's internal team. Service levels increased dramatically, with faster, more reliable deliveries and fewer disruptions, thanks to proactive planning and real-time adjustments. The customer was also able to scale confidently, adding new business without stretching their internal resources. Importantly, Covenant’s commitment to driver care and professional development led to improved driver satisfaction and lower turnover, reinforcing the long-term stability of the solution.
What Made the Difference
Covenant’s approach wasn't about plugging the customer into an off-the-shelf program. Instead, they:
• Built trust through transparency and shared goals.
• Operated with relentless focus on continuous improvement.
• Used data and direct driver feedback to evolve the solution.
• Created a culture of service, where even tenured employees stepped up at a moment’s notice to support launches.
Why Convert to a Dedicated Solution
Matt Duncan, VP of Enterprise Driver Recruiting, emphasized: “Private fleets often underestimate the full burden of recruiting, onboarding, and retaining drivers—each turnover can cost up to $20,000. Our dedicated teams handle these challenges daily so our customers can stay focused on what they do best.”
Will Acker, VP of Dedicated Operations, added: “With a dedicated solution, you don’t just solve today’s problem—you build a system that grows with your business, one that’s constantly improving and always ready for what’s next.”
