That's pretty much how it was done before trucks became mainstream.

Lots of smaller trucks.

Localize manufacturing for one.

manufacturing out of thin air? if you aren't transporting the finished product, then you're transporting the ingredients.

unless you picture raising wheat in urban environment, in which case I'll just leave you to it.

Grow wheat in fields close to town. Use smaller trucks (than gigantic semis) for transportation.

This ain't rocket science.