Almost every other organisation that you see today is aiming towards augmenting their revenue through increased sales. In the run for this augmentation, what the companies are overlooking is the fact that when their businesses are prospering and revenues are increasing at the same pace their costs are actually going too steep.
Today, if a company lets costs increase at a relatively high rate compared to the income the profit margin will go on to be very sensitive to the ups and downs of demand.
Source: https://www.entrepreneurshipsecret.com/procurement-process/