Zero-Based Budgeting Procurement | Zero Based Budgeting Consultation

To thrive amid a volatile business environment, you need to make cost management an everyday way of life. With zero-based budgeting (ZBB), you get insights into true spend and rapid cost takeout to embed a culture of accountability for ongoing costs.

Our structured approach to ZBB allocates funding based on program efficiency and to the point of use rather than budget history or ownership. ZBB provides procurement and finance teams forensic-level insight into true spend types and their end-use locations to benchmark and target cost reduction across people, property, direct and indirect spend.

Gen AI-driven Tools Helping CFOs & CPOs To Optimize Spend and Create Value in Procurement

Unlike traditional budgeting and cost management processes that focus on which costs to take out, ZBB focuses on which costs to keep, allowing enterprises to allocate funds to areas that drive highest value.

ZBB challenges all expenditure and justifies spend from the ground up. Category and budget ownership are put in place to provide motivation, visibility and control to embed an accountability culture.

This robust method of budgeting can be applied to almost all types of cost, including capital expenditures, operating expenses and cost of goods sold. ZBB has proven to be a successful budgeting methodology and is recognized worldwide for the comprehensive savings it delivers, thereby freeing enterprises from unproductive programs, departments and functions.

Program expenditure is independent of budgets from preceding years ― each program is assessed at the beginning of a review cycle to justify funding for its respective line items.
Budget allocation is based stringently on strategy goals, maximum ROI and functional performance, and is unconnected to allocation from past budgets.
Increments or reduction to spend are not necessarily balanced across various budgets, allowing for greater accuracy and precision in expenditure planning.
Promotes strategic alignment of funding with functional/program objectives, thereby ensuring improved spend management and overall cost effectiveness.

See how ZBB can work for your business ― contact us today.

Drive Sustainable Growth and Profitability with ZBB

GEP helps reduce total operating costs by combining forensic insights with benchmarking to set clear targets. Using ZBB, we reset baselines and extract costs through demand, cost, structure, and process levers. We embed a culture of cost consciousness and support category and budget governance. We analyze spend, map total costs to value chain activities, identify value-adding processes and select the right levers to optimize outcomes and the cost base.

Drive Sustainable Growth and Profitability with Zero-based Budgeting (ZBB)

“GEP is uniquely positioned to advise clients, bringing its category and transformation expertise to help clients achieve their specific organizational, supply management and process efficiency objectives.”

Value Beyond Cost Reduction

GEP’s ZBB solutions go beyond cost reduction to unlock strategic value and help you:

Improve financial performance by reducing SG&A between 15 percent and 35 percent
Free up working capital and non-working dollars for investment in growth
Gain competitive advantage by repositioning the cost base and getting insight into fixed and variable costs
Enable agility and flexibility to respond to changing market and demand
Understand spending patterns compared with the industry and competitors
Create a culture of accountability and cost consciousness while maintaining high levels of productivity and output