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How a Major Logistics Operator Cut Subcontractor Driver Utilisation from 90% to Below 10%

Building a sustainable Class 1 workforce for a national retailer’s East Midlands transport operation.

How a Major Logistics Operator Cut Subcontractor Driver Utilisation from 90% to Below 10%

Client

Major Logistics Operator

Contact

Transport Manager

Sector

Transport and Logistics

Staffing Type

Class 1 Drivers
10%
Subcontractor Utilisation from 90% to
35
Class 1 Drivers
1st time
Operational profitability for the

When a major contract logistics provider assumed responsibility for the primary transport operation of a national health and beauty retailer, its transport leadership team faced a demanding commercial and operational challenge. It needed to establish a stable, productive and cost-effective Class 1 driver workforce while protecting daily store delivery performance across a complex retail distribution network.

For the Transport Manager, General Manager and wider transport team, success depended on more than filling driving vacancies. They needed stronger workforce planning, less reliance on costly subcontractors, better driver retention and greater confidence that daily delivery commitments could be met.

A national logistics recruitment and workforce solutions partner worked alongside the operator to build a dedicated Class 1 driver workforce from the ground up. By contributing driver capacity insight to daily freight planning, the workforce partner became a trusted extension of the transport operation.

The result was a reduction in subcontractor utilisation from approximately 90% to between 5% and 10%, improved workforce continuity, stronger delivery planning and an operation that became profitable for the first time.


The Challenge

The logistics operator had an opportunity to transform a newly mobilised retail transport contract following its transition from the previous provider. The East Midlands operation required a dependable Class 1 driver workforce to support daily store deliveries across a large retail network.

  • Heavy reliance on subcontracted drivers
  • Growing demand during peak trading periods
  • Workforce uncertainty following contract transition
  • Pressure to improve transport productivity and protect store service levels
  • Limited visibility of available driver capacity within freight planning decisions

The Leadership Objective: Build a sustainable driver workforce that improved long-term performance, reduced labour costs and protected service levels.

The Objective

The operator needed a workforce partner that understood transport operations, regional driver markets and the day-to-day pressures facing transport managers. The brief was to:

  • Build a dedicated Class 1 driver team
  • Reduce dependency on subcontractors
  • Improve workforce planning accuracy
  • Support daily transport and freight planning decisions
  • Increase delivery productivity
  • Improve driver retention
  • Provide additional capacity as demand changed
  • Create a more commercially sustainable operation

The Solution

Building a Dedicate Class 1 Workforce
The workforce partner built a team of approximately 30 to 35 Class 1 drivers for the retail transport contract. The model focused on continuity, quality and retention rather than short-term reactive supply. Proven drivers were retained from earlier periods while the team continued to strengthen workforce stability.

Bringing Workforce Insight into Daily Freight Planning
The workforce partner joined daily planning calls with the logistics operator and retailer. These conversations covered delivery requirements, store priorities, freight planning, route scheduling, resource needs and operational risks. Visibility of retailer demand and the operator’s freight schedule enabled the workforce partner to add a driver-capacity lens to operational decisions. This supported better-informed choices around driver deployment, route priorities, peak coverage, delivery scheduling and utilisation.

Maintaining a Regular On-Site Presence
Weekly site visits gave the workforce team a practical understanding of weekday, weekend and seasonal volume patterns. This helped it anticipate workforce risks, plan future driver requirements and identify opportunities to maximise delivery runs, improve utilisation and reduce last-minute labour sourcing. The partnership also supported the operation through adverse weather, when delivery rotas and driver requirements had to be adjusted to minimise disruption to store replenishment.

Creating a Regional Driver Pool
The workforce partner used its established logistics candidate network across the East Midlands to create a regional pool of proven Class 1 drivers. Drivers could be redeployed between nearby contracts as seasonal peaks and customer demand changed.

Value for Drivers

  • More consistent access to work
  • Greater continuity between assignments
  • Stronger retention through local redeployment

Value for the Logistics Operator

  • Access to known and proven drivers
  • Improved fulfilment and flexibility
  • Less repeat onboarding
  • Greater resilience during peaks

Outcomes Delivered

Subcontractor utilisation reduced: Usage fell from approximately 90% of labour utilisation to between 5% and 10%, reducing workforce costs and increasing control over driver quality and availability.
Dedicated Class 1 team established: Approximately 30 to 35 Class 1 drivers were built into a stable workforce for the retail transport operation.
Operation became profitable: The retail transport operation became profitable for the first time.
Freight and workforce planning aligned: Daily collaboration connected store delivery demand and freight schedules with a clear view of available driver capacity.
Delivery productivity strengthened: The transport team could use driver insight to maximise available resource and identify opportunities to improve delivery runs.
Driver retention improved: Regional redeployment gave proven drivers more sustainable access to work across neighbouring logistics operations.
Greater peak and disruption resilience: The partnership helped maintain workforce continuity through seasonal peaks, changing volumes and adverse weather.


Strategic Value Created

For the Transport Manager, General Manager and wider transport team, the value went beyond recruitment. By combining logistics recruitment expertise with practical workforce planning support, the workforce partner became an extension of the operation.

  • Lower contingent labour costs
  • Reduced subcontractor dependency
  • A more stable and retainable Class 1 workforce
  • Improved fulfilment and operational resilience
  • Greater visibility of future driver requirements
  • Better alignment between freight planning and workforce planning
  • A repeatable regional model for further efficiency and cost control

The Next Opportunity
Following the transformation of the original operation, the logistics provider is exploring how the same workforce planning principles could reduce contractor reliance and improve workforce stability at another local site. The existing regional driver model provides a foundation for further scalability, efficiency and cost control.

“When we took on the retail operation, reducing our reliance on subcontractors was a priority. Building a dedicated driver workforce with our recruitment partner gave us greater stability, better visibility of our resource and helped build trust with our customer, putting the operation on a strong footing.”
Transport Manager, Major UK Logistics Operator
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