Hargreaves adopts partnership approach to subcontractors

Hargreaves Logistics is launching a franchise programme to boost subbie retention and create a more flexible fleet.

The company is targeting its base of 200 dedicated subbies, with plans to take on about 100 franchise partners over the next three to five years.

The first five subcontractors have signed up to the franchise scheme as partners. They are contracted for five years with an option to extend the contract or negotiate a new contract at the end of the five years.

The five new partners are running a total of six Hargreaves liveried trucks with an option to run up to five trucks under the scheme.

Franchise partners have injected new blood into the Hargreaves fleet, with all five choosing to run either Daf or Renault trucks rather than the Scania and Mercedes-Benz vehicles that make up Hargreaves’ 150-strong fleet.

Hargreaves Logistics MD Andrew Spence-Wolrich told CM: “We offer franchisees a five-year deal with a guaranteed minimum earning of £300 a day. We pay for their unit to be put into Hargreaves livery and also provide partners with a fuel card and access to benefits such as insurance and funding through our independent partners.”

Subcontractors must meet a set of safety standards and specifications to qualify. They must also join either the RHA or the FTA and agree an annual compliance audit.

Spence-Wolrich said: “We are careful about who we take on. Our objective is for customers not to notice any difference in service, quality or compliance.”

He said the franchise programme is aimed, in part, at increasing quality subbie retention levels. “In today’s market, drivers and subcontractors are a valuable resource. Offering a long-term relationship is a way of attracting and retaining the best subcontractors.”

Another key driver behind the programme is Hargreaves Logistics’ desire to use its own fleet more flexibly.
Spence-Wolrich explained: “It lets us use our own fleet as the cavalry. We can be very responsive to new business implementations and peaks in demand, allowing us to deliver a high level of service to our customers.”

• This article first appeared in Commercial Motor 1 October. Subscribe today to receive 12 ssues for £12.