Back to Glossary

What is Zero-Based Budgeting (ZBB)?

Zero-based budgeting (ZBB) is a concept that came in 1970 to help businesses manage their costs better. ZBB, as opposed to traditional budgeting, doesn’t automatically include any item in the next year’s budget.

Although the concept became vague and outdated as companies went back to conventional budgeting techniques, it is gaining back traction as some experts find that annual budget created through ZBB is aligned to overall strategy and helps improve operational efficiency by challenging assumptions under conventional budgeting.

Procurement organizations that are willing to explore the possibilities of ZBB will find that they are able to identify savings opportunities through demand management techniques as well as help enterprises understand spending patterns as compared to their competitors.

Continue reading to explore GEP’s Zero-based budgeting solutions.

World's Leading, Unified Source-to-Pay Platform for Direct and Indirect Spend Management

GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.

Learn More ‌ 

Next-Gen, End-to-End Supply Chain Management Platform for the Connected Enterprise 

GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artificial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.

Learn More ‌