Five practical ways SMEs can cut delivery costs

The Citizen

2 days ago

If delivery costs are not properly managed, they can drain cash flow, create bottlenecks and ultimately cost customers.
It is important for small and medium enterprises (SMEs) to find ways to cut costs in order to stay in business. One of the things SMEs can look at is cutting delivery costs, especially with rising fuel prices and fragmented delivery routes.
Leon Bruwer, managing director of sales, FedEx Sub-Saharan Africa, says a report by World Wide Worx revealed that the value of e-commerce in South Africa is expected to surge to more than R100 billion by 2026; these mounting expenses could pose a serious growth barrier for many smaller businesses.
He emphasises that if delivery costs are not properly managed, they can drain cashflow, create bottlenecks and ultimately cost customers.
How to cut delivery costs
Bruwer gives five tips SMEs can use to cut delivery costs.
'Sending multiple small shipments during the week may seem convenient, but it quickly racks up handling and delivery fees. By bundling orders and sending fewer, larger shipments, businesses can significantly lower their logistics spend.'
Bruwer adds that the mistake businesses make is to rush small orders out the door, not realising how much it eats into their bottom line.
'Consolidation makes a noticeable difference, especially for businesses shipping across regions or internationally.'
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2. Go digital and take control of your costs
He says unexpected charges can turn a simple order into a costly mistake. 'The fastest way for SMEs to gain control is to use digital tools that help prevent issues before they cause problems.'
He believes an automated system can save a lot of SMEs time and money.
'These tools let you track your costs upfront, avoid last-minute surprises, and make sure everything is correctly documented. It is a small change that can have a big financial impact.'
3. Do not get caught chasing the cheapest courier
Bruwer says many businesses opt for the lowest courier quote, but they often end up paying for it through delayed deliveries, hidden fees or unhappy customers.
'The smart money is on finding a logistics partner who offers reliability, flexibility, and real value, not just the lowest rate on paper.'
Choosing the cheapest option can end up being the most expensive decision.
'You want a partner to offer the right balance. This includes solid service, flexible delivery options, and ways to save, like loyalty discounts or volume-based savings.'
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4. Match delivery speed to customer need
He advises businesses to select more economical services where appropriate, instead of trying to deliver packages the next day.
'Customers are generally happy to wait an extra day or two, especially if you communicate it upfront.
'It is about being strategic, such as using premium shipping when necessary and opting for standard options otherwise. That is how you protect your margins without letting down your customers.'
5. Pack properly – small changes here mean big savings
He adds that it is not just what you ship, but how you pack it.
Oversized boxes or inefficient packing can lead to unnecessary volumetric charges. Done properly, good packaging reduces not only damage risks but also costs.
'We always remind businesses that packaging equals money. If your box is too big, you are essentially paying for air. Efficient packaging keeps your costs lean and your products protected. It is low-hanging fruit for any SME looking to save.'
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