Summary
In 2018, a longstanding customer asked Covenant Logistics to take over operations at their Greenville, SC distribution center after the previous provider exited the partnership. The facility was in disarray—riddled with inventory issues, outdated technology, and operational inefficiencies. Drawing from its existing experience with the customer's buffer operation in Tennessee, Covenant stepped in, stabilized the operation, and transformed it into a model of efficiency, accountability, and employee engagement. The success of this turnaround later resulted in the customer awarding Covenant three additional contracts across the U.S.
Challenges
Outdated WMS Technology: The previous warehouse management system (WMS) couldn't handle growing volume, making it nearly impossible to manage inventory effectively.
Temporary Workforce Dependence: Most employees were temporary and not integrated into a cohesive, long-term team.
Limited Equipment & Infrastructure: The building lacked up-to-date tools, internet connectivity, and functional equipment necessary for modern warehousing.
Solutions
Thorough Physical Inventory: Covenant began the transition by conducting a comprehensive inventory to reset the baseline and restore inventory accuracy.
Implementation of New WMS: A more user-friendly and scalable warehouse management system replaced the legacy platform, significantly improving system reliability and user adoption.
Hands-On Support: Covenant’s leadership and operations teams provided on-site transition support, including dedicated IT and WMS experts.
Employee Retention Strategy: Covenant absorbed nearly the entire workforce, transitioning them from temp status to permanent roles. HR maintained a strong on-site presence to support team morale and transparency.
Equipment and Infrastructure Upgrades: New forklifts, improved internet service, and better overall connectivity equipped the warehouse for high-volume throughput.
Results
Under Covenant Logistics’ management, the facility experienced a dramatic operational transformation. The workforce was streamlined from 112 to 65 employees, all while maintaining and even improving performance metrics, thanks to upgraded systems and optimized workflows. Inventory accuracy, once a major pain point, reached 100% month over month in 2024, demonstrating the effectiveness of Covenant’s structured approach and attention to detail. Additionally, the introduction of a rework process allowed Covenant to offer greater value to the customer by expanding the facility’s capabilities.
The transition also had a significant impact on employee engagement. Covenant successfully transitioned nearly the entire workforce from temporary or prior employment into full-time roles within the company. Through strong HR presence and transparent communication, Covenant instilled its values-driven culture into the team, resulting in higher retention and long-term stability.
On the customer side, service levels and responsiveness improved substantially. The ability to quickly resolve IT and WMS issues through on-demand support created a smoother and more efficient operation. This successful turnaround built a deeper level of trust with the customer, ultimately leading them to award Covenant three additional distribution center contracts across the United States.
Ready to turn your distribution challenges into a competitive advantage? Let’s talk about how Covenant Logistics can help you stabilize operations, elevate performance, and build something better—together.
