Squeezing the Most Out of Your Logistics Budget: A Smart Guide for South African Businesses

If you're responsible for operations, finance, or logistics, chances are you're being asked to do more with less this year. Whether it's inflation, rising fuel costs, or global supply chain challenges, logistics budgets are under pressure like never before.

At Sengers LCA, we work with businesses to transform logistics from a cost centre into a performance driver. And we’ve seen one thing consistently: it’s not always about cutting costs. It’s about spending smarter, not necessarily spending less.

In this article, we’ll show you practical ways to squeeze more value from your logistics budget without compromising service levels—or losing your sanity.

Why Logistics Budgets Get Stretched So Easily

Before diving into solutions, let’s understand why logistics budgets tend to bloat over time:

• Fuel price volatility impacts transport costs almost weekly.
• Overstocking creep leads to higher storage and handling fees.
• Inefficient routing or carrier choices drive up per-delivery costs.
• Poor inventory visibility leads to emergency freight or duplicated stock.
• Lack of forecasting causes a mismatch between demand and logistics capacity.

These issues aren’t always visible on a P&L. They show up in creeping costs, delayed deliveries, and low ROI on your logistics spend.

7 Ways to Squeeze More Value from Your Logistics Budget

1. Audit Your Logistics Spend Regularly

You can’t improve what you don’t measure. Start by reviewing your last 3–6 months of logistics costs:

• Freight costs per supplier or route
• Warehouse spend by product category
• Returns and re-delivery costs

Even small inefficiencies add up quickly. At Sengers LCA, we offer logistics spend audits to help pinpoint waste and prevent it.

2. Match Inventory to Demand – Precisely

One of the biggest drains on a logistics budget? Holding too much of the wrong stock. Not only does this increase storage costs, it creates pressure on distribution and ties up working capital.

Use forecasting tools and historical sales data to adjust your inventory levels more frequently—especially in the second half of the financial year.

3. Consolidate Shipments Where Possible

Are you sending multiple partial loads to the same location each week? You're likely overspending. By consolidating smaller shipments into fewer, fuller loads, you can cut freight costs by up to 30%—and reduce carbon footprint at the same time.

Sengers LCA helps clients consolidate loads intelligently based on frequency, location, and urgency.

4. Review Carrier Performance & Rates

Your logistics partners need to earn their keep. That means:

• On-time delivery rates above 95%
• Competitive rates with fuel charges under control
• Proactive communication

We help our clients benchmark carrier performance and negotiate better rates based on volume, consistency, and service level.

While we know that relationships with suppliers over a long period may be helpful and benefit businesses, reviewing and benchmarking pricing helps prevent loyalty from becoming a liability.

5. Automate and Integrate Logistics Data

If you’re still using spreadsheets to track deliveries, storage costs, and freight invoices, you’re missing opportunities. Logistics platforms or outsourced partners like Sengers LCA offer:

• Real-time tracking
• Cost reporting dashboards
• Exception alerts (e.g. missed deliveries or excess dwell time)

Better data means better decisions and fewer costly surprises. Read our blog post on the logistics KPIs you should be tracking.

6. Outsource Where It Makes Strategic Sense

Trying to manage logistics internally without dedicated expertise can lead to overspending, inconsistent service, and unnecessary overheads.

By outsourcing to a logistics partner like Sengers LCA, you gain:

• Access to logistics experts without the salary
• Scalable solutions as your business grows
• Clear KPIs and accountability

We act as your external logistics department without the cost of building one in-house. We offer experience at a fraction of the employee cost.

7. Track the Right KPIs

Without KPIs, logistics spending becomes reactive. Key metrics to monitor monthly include:

• Freight cost per order
• Logistics cost as % of revenue
• Inventory turnover
• Delivery in-full and on-time (DIFOT)

We help you turn these numbers into actionable strategies that support both short-term savings and long-term resilience.

You Don’t Have to Cut Corners—Just Cut Waste

Squeezing more from your logistics budget doesn’t mean sacrificing service or overworking your team. It means clarity, control, and continuous improvement.

At Sengers LCA, we specialise in helping small to mid-sized businesses across South Africa optimise their logistics spend—without the need for complex systems or internal logistics teams.

Ready to Maximise Every Rand in Your Logistics Budget?

Let’s take a fresh look at your logistics strategy. Book a logistics audit and let’s find hidden savings and smarter opportunities in your supply chain.