How to Solve Small Business Delivery Problems and Solutions: A Guide for Australian Businesses

This guide offers solutions to common small business delivery problems in Australia. Learn how to lower shipping costs, reduce missed deliveries, and choose a reliable courier service with our step-by-step framework.

Walter Scremin CEO at Ontime

17 November 2025

A logistics professional using a computer to track shipments

Are your shipping operations causing you more stress than they’re worth? I’m Walter Scremin, CEO of Ontime Delivery Solutions. For over two decades, I’ve been on the front line of Australian transport, helping businesses find real solutions to their small-business issues, and I know the feeling of a day being completely derailed by a single late shipment.

In today’s economic climate, where expectations from customers are higher than ever, inefficient shipping isn’t just an inconvenience—it’s a direct threat to your profitability. The Australian Bureau of Statistics reports that Australians spent approximately $436 billion on online retail in 2024, which means your fulfilment system is your primary connection to a massive market. My goal here is to give you a framework to finally control the chaos by improving reliability and customer satisfaction.

Here’s the clear roadmap of what we’ll cover:

Step 1: How to lower shipping costs by finding hidden fees.
Step 2: Choosing the right fulfilment partner for your business.
Step 3: The 3 pillars of a reliable and efficient system.
Your Action Plan: A 3-step framework to take control this week.

Step 1: Uncover and Quantify Your Hidden Delivery Costs

Before you can tackle high shipping costs, you first need to bring them into the light. While you see obvious expenses like fuel and vehicle maintenance on your balance sheet, the most damaging costs are often hidden in operational chaos. These are the “invisible” expenses that bleed your business dry by disrupting operations, damaging your reputation, and wasting valuable time.

The first step to controlling them is to measure them. Here’s how to audit the three critical areas where hidden costs spiral out of control:

1. Calculate the Full Cost of Vehicle Downtime

A vehicle sitting idle is more than a stationary asset; it’s a hole in your revenue stream. To calculate its true cost, look beyond the simple repair bill.

How to do it: When a vehicle goes down, track the direct repair cost, but also add the lost revenue from delayed or canceled orders, any overtime paid to other staff to cover the disruption, and most importantly, the estimated lifetime value of any customer who was negatively impacted.
For example: Your van breaks down, resulting in a $1,000 repair bill. But that breakdown also caused a failed delivery to a key mechanic, who now views you as unreliable. If that mechanic’s business is worth $15,000 over its lifetime, the true cost of that downtime wasn’t $1,000 it was $16,000.

2. Measure the Ripple Effect of Driver Absenteeism

Your regular driver is a walking database of route knowledge and customer relationships. When they’re gone, the cost to replace that knowledge for a day is immense.

How to do it: Don’t just track the wage for a temp driver. Calculate the extra time your manager spends getting the replacement up to speed. Add the cost of incorrect or late deliveries due to their inexperience. Tally the time your team spends on damage control with unhappy clients.
For example: Your regular food supply driver calls in sick. The temp you hire takes 90 minutes longer and misses two drop-offs. You spend your morning on the phone with angry café owners, and your warehouse manager has to leave their post to sort it out. The “cost” wasn’t the temp’s wages; it was three people’s high-value time and a hit to your reputation for reliability.

3. Audit the Cost of Administrative Overload

Every hour your skilled team members spend on manual, low-level tasks is an hour they aren’t using their talents to grow your business. You are effectively paying a manager’s salary for a dispatcher’s job.

How to do it: For one week, have your operations or warehouse manager log the time they spend on manual route planning, calling drivers for updates, and handling delivery paperwork. Multiply those hours by their fully-loaded hourly wage to see the true cost.
For example: Your manager spends two hours every morning planning routes. That’s ten hours a week of their 80,000 salary (about $38/hour spent on a $20/hour task). You are overpaying by $180 every week—or over $9,000 a year—for just one inefficient process.

By putting a real number to these three areas, you are no longer dealing with vague frustrations. You now have a data-backed case for the tangible benefit of solving these problems, which sets you up perfectly for the next step.

Step 2: Choosing a Reliable Partner vs. Building an In-House Team

Your delivery system is your direct connection to a massive market. Getting this right is your single biggest opportunity for growth.

“Running a business while trying to manage a fleet is like trying to be an expert in two completely different industries. The most successful owners I work with make a conscious decision: they choose to be an expert in their product, not in transport management. That shift is what allows them to truly scale.”

—Walter Scremin, CEO of Ontime Delivery Solutions

Why a “One Size Fits All” Approach Never Works

You might be asking, what does a “tailored solution” actually mean? My philosophy is that choosing a reliable partner isn’t about finding a vehicle; it’s about building a process that perfectly mirrors your operational needs, so you never have to think about it again.

It means getting the right vehicles. For example, if your business is an auto parts distributorship, you might need two 1-tonne vans for urgent metro drops and a 4-tonne Pantech for bulk stock transfers.
It means getting the right driver training. For example, if you’re a premium wholesale butcher, your driver must be trained on your specific hygiene protocols, which is key to handling goods damaged in transit before they even leave your coolroom.
It means getting the right process. Your driver should feel like an extension of your own team. They should know your paperwork and your customers, so you can hand off the entire delivery function with complete confidence and full tracking visibility.

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Step 3: The 3 Pillars of a Reliable Fulfilment System

With the right mindset, you can stop fighting fires and start building a system that prevents them. This framework is built on three simple, powerful pillars.

Pillar 1: Proactive Management and Real-Time Tracking

The philosophy here is that technology shouldn’t just offer basic tracking; it should move your business from a reactive state (“Where is my driver?”) to a proactive one (“My customer will get their delivery in 15 minutes.”). Good fulfilment management gives you foresight.

For example, a customer calls asking for an ETA. Instead of calling your driver, you look at your dashboard’s real-time tracking. You see they are two stops away and tell the customer, “John will be with you in 20 minutes.” You have just solved a customer service issue in seconds, so that you maintain a professional image and keep operations flowing.

Pillar 2: Guaranteed Continuity

My reasoning is that you cannot build a resilient business on a system with single points of failure. This pillar is your operational insurance policy. The core of this is a reserve fleet.

For example, your dedicated driver calls in sick. Instead of you scrambling, your partner’s operations manager immediately dispatches a fully-trained reserve driver in an identical vehicle. Your client never even knows there was a potential issue, so that your service reputation remains perfect.

Pillar 3: Embedded Expertise

Technology and systems are useless without the right people. The philosophy is that a dedicated driver is the final link who translates your system into a great customer experience.

For example, the dedicated driver for a medical supplier doesn’t just drop a box; they know the specific handling protocols for sensitive equipment. This expertise prevents costly errors and builds deep trust with your clients, so that you become an indispensable partner.

Common Shipping Issues & FAQs

What are the biggest hidden costs and issues for a small business in Australia?

The three most significant hidden costs for Australian small businesses are not found on a standard profit and loss statement. They are:

Vehicle Downtime: This goes beyond repair bills to include lost revenue from delayed or cancelled orders and damage to customer trust. A single day of downtime can cost a business over $1,000 in lost productivity.
Driver Absenteeism: The cost of hiring a last-minute temporary driver who lacks knowledge of your specific routes, customer protocols, and paperwork processes, leading to errors and delays.
Administrative Overload: The salary cost of skilled staff spending hours on low-value tasks like manual routing instead of focusing on high-value activities. This is often worsened by handling customer complaints regarding shipping delays.

Is it cheaper to run my own van or use a dedicated service?

Running your own van often has a lower perceived upfront cost but can be more expensive when considering the Total Cost of Ownership. The tradeoff is between direct costs and indirect costs. A self-managed van involves direct costs like the vehicle purchase, fuel, insurance, and maintenance. In contrast, a dedicated service, like Ontime Delivery Solutions, has a fixed cost but is designed to eliminate expensive indirect costs like administrative time, the financial risk of vehicle downtime, and the operational chaos caused by driver absenteeism.

What is the difference between standard couriers and a dedicated partner?

The primary difference is strategic. A standard courier is transactional and best for sending single or infrequent parcels where consistency is not critical. A dedicated partner is relational and functions as an outsourced department for businesses with consistent, daily needs. For businesses requiring reliability, tailored vehicles like refrigerated vans, and drivers who act as part of their team, a dedicated partner is the more effective long-term solution.

How does fulfilment software actually reduce my costs and improve shipping?

Fulfilment software reduces costs through three main functions. First, route optimisation cuts direct costs like fuel and driver hours, often improving efficiency by up to 30%. Second, real-time GPS tracking reduces indirect administrative costs by eliminating the need for staff to manually field “where’s my package?” calls. Third, features like electronic Proof of Delivery minimise financial losses from disputes and claims for items not received.

What should I look for when choosing a reliable service for my deliveries in Australia?

If you’re shopping for a reliable service for consistent business needs, prioritise these four criteria:

Tailored Fleet Options: The service must offer the specific vehicle types your business requires, such as 1-tonne vans, 4-tonne Pantechs, or refrigerated trucks.
Guaranteed Continuity: Ask if they have a reserve fleet of vehicles and drivers to cover for unexpected breakdowns or staff absenteeism, ensuring no service interruptions.
A Robust Technology Platform: The service should provide access to management software that includes GPS tracking and route optimisation.
Proven Industry Expertise: Look for a provider with experience in your specific sector, whether it’s automotive parts, healthcare, or food distribution, as they will better understand common delivery requirements.

Your Action Plan: How to Solve Common Shipping Issues

Understanding the pillars is the first step. The next is implementation. This simple plan is the exact process I use with clients to make the invisible costs of chaos visible and build a clear path forward.

Step 1: Conduct Your 7-Day “Cost-of-Chaos” Audit

For one week, use a simple spreadsheet to track these three numbers. The goal is a real-world estimate, not accounting perfection.

Track Downtime Costs: If a vehicle is down for 4 hours, and your average daily revenue is $4,000, the lost revenue is roughly $2,000. (Formula: (Average Daily Revenue / 8) x Hours of Downtime).
Track Admin Costs: If your manager (at a loaded rate of $60/hour) spends 1 hour per day on manual routing, that’s $300 a week lost to low-value tasks.
Track Error Costs: Tally the cost of any re-deliveries, returned goods due to damage, or credits issued for failures or delivery delays. These delivery issues highlight the real cost of not handling goods damaged in transit effectively.

Step 2: Create Your Ideal Delivery Blueprint.

Based on your audit, define what the perfect solution looks like. Your blueprint should answer these questions:

What is the exact mix of vehicles I need (e.g., two 2-tonne vans, one 4-tonne Pantech)?
What special requirements are non-negotiable (e.g., refrigeration, tailgate lifts)?
What information do I need to see on a dashboard to feel in control and reduce missed deliveries?

Step 3: Benchmark Your Findings with an Expert.

Now that you have your own data, you can have an informed conversation. The logical next step is to validate your findings. For example, we offer a complimentary, no-obligation Fleet XRAY Analysis™ where we confidentially review your numbers and provide a detailed comparison against a fully managed solution.

Ready to benchmark your numbers? Call us on 1300 808 488 to see your options.

Conclusion: Stop Managing Logistics, Start Driving Growth

Stop letting logistical headaches manage your business. It’s time to reclaim your time, quantify your true costs, and turn your operations into your most powerful competitive advantage. Here are the key takeaways:

Quantify Your Chaos: Use a simple audit to understand the true financial impact of your inefficiencies.
Shift Your Mindset: Choose to be an expert in your business, not in fleet management.
Build for Resilience: Implement the 3 Pillars (Technology, Systems, People) to protect your business from disruption.