Woolworths should continue procuring from small businesses as it offers several benefits. Firstly, it supports local economies and communities, which can enhance Woolworths' corporate social responsibility profile. Secondly, small businesses can often provide unique, high$-$quality products that differentiate Woolworths from its competitors. Lastly, small businesses can often offer more flexibility and personalisation in their products and services.

However, to improve the performance of these suppliers, Woolworths could adopt several strategies.

Capacity Building: Woolworths could provide training and resources to help small businesses improve their production processes, quality control, and business management skills.

Financial Support: Woolworths could offer favourable payment terms or financial assistance to help small businesses manage their cash flow and invest in growth.

Collaboration: Woolworths could work closely with small businesses to develop new products, improve existing ones, and better align their operations with Woolworths' needs.

Technology Adoption: Woolworths could assist small businesses in adopting new technologies to improve their efficiency and competitiveness.

Regular Feedback: Woolworths could provide regular feedback to small businesses on their performance, helping them identify areas for improvement and recognise their successes.

By adopting these strategies, Woolworths can help small businesses become more reliable, efficient, and innovative suppliers, adding value to the organisation.