Supply management is often the most critical component of the small, family ran businesses as their owners usually do not have the experience needed to implement effective supply management systems and practices.

According to some researchers (Paik, 2011) procurement of goods and services is a single largest category cost in small businesses, which can take up to 80% of the revenues.

This implies that effective supply management is of vital importance for improving productivity and profitability of small, family ran businesses.