Purchasing Management Practices of Small Manufacturers

Abstract

Smaller businesses account for the bulk of employment and new job generation in the U.S. economy. However, most small firms either fail to grow, or fail completely. A major reason for these failures is poor management. Purchasing management is especially important to the small business because these firms typically cannot afford to waste their financial capital on poor purchasing practices. This article reports on a survey of purchasing practices of small manufacturers. Although the respondents appear to recognize the profit‐generating potential of purchasing, the survey uncovers areas of weakness with important implications for purchasing training and development.