Now where's that skywriting font...

Unless the customer and the supplier can learn to remove costly waste from their joint value-creating process, there is an inherent limit on the long-term price-savings available to the customer.  The maximum saving is the amount of margin the supplier can afford to give away over an extended period while still remaining in business.  And this is typically a very small number – only a few percent. - because the great bulk of the suppliers price is determined by real costs resulting from the waste in the value stream.

From: Womack and Jones - Lean Thinking

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