The Overview
A quick-serve restaurant chain needed a highly reliable transportation solution to get its signature branded packaging and paper products to distribution centers for its network of restaurants — on time, every time. If the packaging wasn’t available to restaurants when expected, the chain would close stores rather than use unbranded paper goods. In addition to this high level of reliability, the company, which was previously using a brokerage solution, was also seeking cost savings.
The Challenge
Moving from a self-brokered transportation arrangement to a dedicated fleet was an obvious choice for our customer. But they needed complete confidence that their freight would arrive on time — failure had huge repercussions for the chain and was not an option. The customer needed to see how our flexibility, freight tracking and history of on-time delivery would benefit the chain.
Characteristics
- dedicated fleet for top reliability
- head hauls from two manufacturing plants — one of which suffered a fire, requiring a quick pivot
- backhauls = revenue sharing
Expectations
- 95% on time delivery
- clear and continual communication
- teamwork and partnership as customer growth continues
- 98% on time
- 2,000 miles per truck per week
- backhaul revenue share has provided savings in total freight cost
- one point of contact
The Solution
- 10 trucks, 10 drivers + emergency loads
- Continuous improvement tracking
- Daily dispatch coordination
- Weekly planning, dwell-time and utilization reporting
- Monthly performance reviews
- Network expansion planning
The Results
Covenant’s dedicated fleet has served this customer well over its first year in operation. On-time deliveries exceed the customer’s expectations, and Covenant has now established itself as the customer’s go-to solutions provider, not just for contracted freight, but also for unexpected shipment needs. Weekly check-ins address continuous improvement in KPIs. Backhaul revenue share has provided savings in total freight cost. The customer has included Covenant as a key player in its aggressive expansion plan.
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