Why Now is the Time to Lock In FY25 Freight Spend Planning

QuoteZen
Oct 22
2 min read

The Budgeting Season Challenge

As FY25 moves into its final stretch, shippers and finance leaders are asking the same question: how do we confidently project the rest of the year’s transportation spend to prepare for FY26?

Without accurate visibility into projected transportation costs, organizations risk building next year’s budgets on outdated assumptions. The result: missed forecasts, margin erosion, and limited leverage in carrier negotiations.

Why Freight Spend Planning Matters Now

Volatility in rates, surcharges, and route changes often creates budget surprises. By sharpening your transportation budget forecasting before FY26 planning begins, you can:

Set realistic rate baselines by lane and mode
Account for known adjustments like new routes, contracts, or seasonal surcharges
Add contingency buffers to protect against unexpected disruptions

A clear view of FY25 spend isn’t just about finishing this year strong—it’s the foundation for smarter FY26 planning.

Three Steps to Improve FY25 Forecast Accuracy

1. Segment and Review Year-to-Date Data

Drill down by lane, mode, and customer region. Identify variances where costs are running above plan.

2. Layer in Known Drivers

Account for expected changes—contract renewals, tariff adjustments, fuel volatility, or capacity shifts. Build them into your forecast now.

3. Build a Contingency Buffer

Reserve 3–5% for unforeseen spikes or disruptions. This ensures your projections are defensible, not fragile.

Turning FY25 Insights Into FY26 Budget Strength

Once your forecast is sharpened, carry those insights forward into next year’s budget strategy:

Baseline with real numbers: Use your updated FY25 cost-per-lane/mode data as your FY26 starting point.
Model “what-if” scenarios: Plan for upside, downside, and baseline cases to protect against volatility.
Align across teams: Bring finance, operations, and sales into the process early with transparent spend data.
Assign accountability: Set KPIs for forecast accuracy, cost per unit, and margin protection.

Bottom Line

Accurate freight spend planning in the remainder of FY25 gives you a competitive edge going into FY26. By tightening your transportation budget forecasting now, you’re better positioned to:

Protect margins
Negotiate stronger with carriers
Avoid budget shocks
Build a defensible FY26 plan

Ready to Budget Smarter?

QuoteZen helps shippers, manufacturers, and distributors bring clarity to freight spend and forecasting. If you’re ready to make your transportation budget a competitive advantage, schedule a demo with our team today.