DIY logistics vs outsourced logistics: What's really cheaper amidst rising costs

Managing your company’s logistics in-house might seem cost-effective at first but is it really saving you money? As South African businesses grow, many operations managers and founders face a key decision: stick with DIY logistics, or outsource to a third-party logistics (3PL) provider like Sengers LCA?

In this article, we’ll break down the true cost of in-house logistics, compare it with outsourced models, and help you decide which approach is best for your business.

What is DIY Logistics?

DIY (do-it-yourself) logistics means your business manages its own supply chain, warehousing, distribution, and transportation—usually with internal staff, spreadsheets, and manual processes.

This works for very small businesses, but as you scale, the cracks start to show:

• Deliveries get delayed
• Stockouts or overstocking become common
• You spend more time on logistics than running your business
• Customers start noticing

What is Outsourced Logistics?

Outsourced logistics—also known as 3PL (third-party logistics)—means a specialist partner handles the planning, execution, and reporting of your logistics operations.

With Sengers LCA, for example, we act as your external logistics department, managing:

• Route planning and transport
• Inventory and warehousing
• Order tracking and fulfilment
• KPI reporting and logistics budgeting

You focus on growth—we handle the back end.

DIY vs Outsourced: A Cost Breakdown

Verdict: While DIY may look cheaper on paper, hidden costs, inefficiencies, and opportunity loss usually make outsourcing the smarter move for growing companies.

Hidden Costs of DIY Logistics Most SMEs Miss

• Hiring & training: Replacing staff or upskilling is expensive
• Inefficiencies: Delays, incorrect deliveries, double handling
• Technology gaps: Manual errors, no real-time tracking
• Missed opportunities: Time spent on logistics = less time for sales, customer service, or product development

Looking to see if this could help you? At Sengers LCA we know we can offer long-term savings, increased opportunities!

We are so sure we can help that we will be offering a free logistics audit to anybody who reaches out for a call in June 2025. Contact us today and get an audit , valued at R10 000 absolutely free for a limited time only.

<< Contact Us Now>>

When Should You Outsource Logistics?

You’re likely ready to outsource if:

• You’re delivering more than 40 orders per week
• You’re struggling with inventory visibility or delivery tracking
• Logistics is eating up your team’s time
• Stock issues and team frustration due to delays
• Workshop delays and lost revenue due to late delivery
• Customers are complaining about delays
• You’re expanding into new regions or product lines

Real-World Example: The Cost of Delayed Outsourcing

A mid-sized electronics distributor in Gauteng who manages its own logistics using spreadsheets and part-time drivers. They experience several delayed deliveries and may lose customers

By starting outsourcing to a 3PL manager they could within 3 months could reduced their delivery failure rate by 60%, start seeing live inventory tracking, and could have a much tighter grasp on logistics spend—all for less than the cost of one full-time hire.

Final Verdict: What’s Cheaper in 2025?

If your logistics are manual, stretched, or inconsistent—outsourcing is likely the more cost-effective, scalable, and stress-free option.

Ready to See If Outsourcing Is Right for You?

Let’s take a look at your current logistics setup—and show you how much time, money, and risk you could save. Book a call to learn more.