Today we’re featured on Consumer Goods Technology discussing how zero-based budgeting can transform consumer trade promotions.
Zero-based budgeting is all the rage in consumer goods as of late, and for good reason. It’s effective. It’s also fairly simple to explain. Instead of assuming every department’s budget should be exactly as it was last period, with zero-based budget the assumption is that each department should budget for everything that they invest in from a zero base.
It’s not just an accounting technique — it’s a philosophy that costs should be justified based on a business purpose and not assumed to be a given. Interestingly, Jimmy Carter used it as governor to budget the state of Georgia.
To find out how zero-based budgeting can have a similarly positive impact on your consumer trade promotions, you can read the full CGT article here.