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Ep 22 Inside Procurement: Zero Based Budgeting
In our new Inside Procurement podcast, Omer Abdullah discusses the topic of Zero Based Budgeting (ZBB) – a topic that’s been in the news and on the minds of C-Suite executives across the world, especially in recent months.
ZBB requires managers to plan each year’s budget by starting at “zero”, which means instead of extrapolating based on prior years, all budget line items are developed and justified, from the scratch. In this way, budgets are allocated based on the company’s needs and not on whatever was actually incurred in the past. ZBB is therefore very much ‘decision oriented’ – focusing on the ‘why’.
We explore this topic further to provide a balanced view, addressing the following four questions:
- What is ZBB and how does it work?
- What are the pros and cons of deploying ZBB in an organisation?
- What does ZBB mean, specifically for procurement professionals?
- How can procurement professionals successfully deliver on the promise of ZBB?
Listen to the full podcast to learn this and more.
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