How to keep your costs under control?
AB INBEV - Applying the zero based budgetting principle (zbb)
For companies that still use incremental budgeting and have not yet adopted ZBB, it is now time since the economy puts survival skills and preparedness to the test. When properly implemented, ZBB can reduce SG&A costs by 10 to 25 percent, often within as little as six months.
The ZBB or driver-based process provides a deep visibility into cost drivers and uses this visibility to set credible and challenging budget targets. The periodic budget and forecast process does in fact start from zero and is structured and interactive in order to facilitate meaningful financial debate among managers and executives. The final goal is to create an efficient and effective organisation to ensure every euro is well spent.