‫Let's take a look at an example of how one well-known company uses zero based budgeting Walgreens is
‫a global leader in retail pharmacy, impacting millions of lives each day through dispensing medicine.
‫If you live in other regions of the U.S., you may know them by another name, such as Duane Reade or
‫Boots in the United Kingdom.
‫I'm sure you have one in your neighborhood or within a three mile radius at the corner of happy and
‫healthy. Walgreens announced in 2018 eighteen plans to cut at least $1 billion in annual costs within
‫three years while using technology to address changes and how consumers shop and finding more ways to
‫draw customers into stores alongside zero based budgeting.
‫The cost cutting included some warehouse consolidations and store closings of Walgreens Boots Alliance,
‫Walgreens strategized their cost review structure over a six week period to adopt the zero based budgeting
‫concept.
‫The tool, which is used by consumer product companies to more closely justify all corporate spending.
‫Walgreens also announced the roll out of the savings programs immediately after the 2018 assessment
‫was complete. With cuts to travel and spending on consumer services over this three year period of
‫budget transformation.
‫Walgreens was able to meet their goal of cutting at least one billion in cost by implementing zero based
‫budgeting.