EOFY for Logistics, Transport and Warehousing - What the Most Disciplined Operators Are Doing Right Now
4/5/25, 11:55 pm
By Ark
For Australia’s freight and warehousing operators, EOFY is less about “closing the books” and more about resetting the engine room. When margins are driven by fuel, labour and asset cycles, and regulators are shifting their audit attention, the best operators use June not to catch up, but to move first.
Here’s what we’re seeing across top-performing transport, postal and storage businesses this EOFY.
1. Fleet Financing Isn’t Just a Tax Issue — It’s a Volatility Hedge
Truck, trailer, and MHE (materials handling equipment) finance needs to be more than manageable. It needs to be adaptive. In a freight environment still defined by volume swings and cost shocks, holding the wrong lease terms or overcapitalised asset classes can quietly weaken your operating leverage.
“We’re making good margin on volume, but our finance schedule doesn’t flex when volumes drop.”
What strong operators are doing:
Reviewing lease and chattel structures to identify early exit options or rate renegotiation
Timing new fleet acquisitions to align with depreciation benefits, not just operational gaps
Running scenario modelling to test capital position under slow Q1 or fuel volatility
Why it matters: Resilience in FY26 will come from flexibility, not fleet size.
2. Inventory and Stock Positioning That Actually Reflects Movement
Many warehouse operators still carry thousands of SKUs well beyond their productive shelf life. Some have been revalued on paper, but not written down in practice. This EOFY, more are drawing a line.
“That line of stock hasn’t moved in nine months. It’s tying up cash, rent, and reporting credibility.”
Where disciplined businesses are focusing:
Reclassifying aged inventory and proactively writing down unsellable lines
Cleaning up stock vs system mismatches before they’re exposed in lender reviews
Strengthening inventory reporting to improve warehouse-to-ledger traceability
Why it matters: Balance sheet quality is becoming a conversation point with financiers. Excess stock, unclear valuation logic, or mismatched reporting raise real concerns especially in asset-backed lending reviews.
3. Receivables Tightening Before Liquidity Cracks Form
Larger freight and logistics contracts often carry 30, 60, even 90-day payment terms but EOFY doesn’t wait for cash. Businesses with back-ended debtor recovery are at risk of showing stronger profits than their actual cash can support.
“It’s been a record revenue quarter, but most of it’s still sitting in receivables.”
What’s being implemented:
Targeted action on slow-paying key accounts before June closes
Systematised matching of delivery confirmations and invoice cycles to shorten days sales outstanding (DSO)
Isolation of high-risk AR categories from bonus/incentive calculations to avoid over-distributing
Why it matters: Liquidity mismatches won’t show on a P&L but they will define how fast or slowly you start FY26.
4. Compliance Isn’t a Checkbox. It’s a Strategic Shield
The Chain of Responsibility (CoR), Heavy Vehicle National Law (HVNL), and fatigue management aren’t just operational requirements, they are growing points of audit focus. Many operators still treat compliance documentation as reactive. This EOFY, the leaders are locking it in early.
“We had the systems, but we didn’t update the logs — and that’s what the regulator flagged.”
Key compliance actions we’re seeing:
Verifying that CoR documentation matches actual practices across drivers and subcontractors
Cross-checking fatigue management data against work schedules for accuracy
Confirming that insurance, incident logs and audit trails align with actual vehicle and route profiles
Why it matters: Audits in H2 2025 are unlikely to be announced. Operators who treat compliance as infrastructure, not formality, will absorb them without disruption.
5. Workforce Incentives: Not Just Morale, But Continuity Insurance
In an industry where one absentee driver can derail a route and a lost warehouse lead means inventory chaos, incentives aren’t about motivation, they’re about continuity. This EOFY, the best teams are planning retention with precision.
“We can’t afford another warehouse coordinator walking out in August.”
What’s being done:
Structuring bonuses and retention payments that align with delivery milestones and operational stability
Timing payments for optimal tax treatment while maintaining post-June cash availability
Offering loyalty-linked benefits (e.g., training budgets, extra leave, guaranteed shift cycles) for core staff
Why it matters: People movement post-June isn’t just a cultural issue, it’s a logistics risk.
Final Word
EOFY is the one point in the year where capital, cash, compliance and continuity all intersect.Operators who treat it as a formality are often the ones calling for urgent reviews in October. The ones who treat it as a command centre window enter FY26 stronger, calmer and more credible.
At The Ark, we help freight, warehousing and transport operators translate numbers into resilience. If you need support before the books close, we’re here not just to tick boxes, but to fortify your runway.