Continuous cost reduction is a big challenge all procurement managers need to face. Top executives always expect the purchasing cost can reduce every...

Continuous cost reduction is a big challenge all procurement managers need to face. Top executives always expect the purchasing cost can reduce every year. This is also many companies require their suppliers to achieve year after year. For example, both Walmart and Toyota have annual cost reduction goal for their suppliers. The question is: do you think this requirement is reasonable? Is it possible to cut cost year after year without sacrificing other perspectives of the business? Explain your answer.