Summary
A leading national brand was facing significant operational challenges at one of its key distribution centers. With declining performance, a disengaged workforce, and service disruptions on the rise, the company needed a partner who could not only take over quickly but also turn the facility around. Covenant Logistics stepped in and, within weeks, transitioned the site from instability to success—delivering measurable improvements in productivity, culture, and overall operational excellence.
Challenges
Before Covenant’s involvement, the distribution center was experiencing:
• Cultural Disconnection: Low engagement between leadership and frontline staff led to weak morale and high turnover risk.
• System Inefficiencies: Outdated warehouse management systems were slowing down operations.
• Environmental Hurdles: Regional wildfires and power outages made day-to-day operations unpredictable and difficult to manage.
• Quick Transition Timeline: Urgency to stabilize performance — with little room for error and in a tight timeframe.
Solutions
Covenant’s approach was holistic, fast, and centered on long-term success. Key steps included:
• Hands-On Leadership Support/Open-Door Policy: Senior leaders were boots-on-the-ground throughout the transition—providing direct support, training, and engagement with staff from day one.
• Culture Overhaul: Covenant opened communication lines, fostered a people-first culture, and emphasized servant leadership. Associates were welcomed, heard, and supported.
• Advanced Systems & Engineering: The warehouse management system was overhauled with on-site support and advanced training ahead of go-live, minimizing disruptions.
• Agile Problem Solving: Covenant proactively addressed regional power outages by coordinating a backup generator solution—keeping operations running where previous providers could not.
• Employee Retention & Recruitment: Through local recruiting, bilingual onboarding support, and HR presence during the first weeks, Covenant retained over 95% of hourly staff during the transition.
• Cross-Site Collaboration: Covenant deployed proven team members from other high-performing sites to support the launch, bringing in experience, training, and continuity.
Results
Covenant successfully retained over 95% of hourly employees during the transition, thanks to proactive communication, improved onboarding, and stronger workplace support. Team members reported a noticeable difference in leadership engagement, benefits, and overall morale. Operational performance quickly improved as the site moved from a bottom-quartile ranking to a best-in-class facility, consistently meeting and exceeding service expectations.
The customer praised the transition as one of the smoothest in their network's history and has since invited Covenant to bid on additional locations. Most importantly, this distribution center now serves as a scalable model for successful turnarounds—proving Covenant’s ability to stabilize, optimize, and elevate operations under pressure.
Looking to turn around your own operations?
Covenant’s warehousing solutions are built for transformation. Let’s build something exceptional—together.
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