Businesses want to do more with small suppliers. However, internal hurdles and information gaps continue to keep execution lagging behind intent, as outlined in “Scaling Small: Inside the Enterprise Push to Source Smarter and Stay Competitive,” from supplier.io.
“This research makes clear what enterprises already know: small suppliers are essential for resilience, growth, and innovation,” says Neeraj Shah, founder and CEO of Supplier.io. “The challenge has never been intent; it’s scale and effective vetting. Too many enterprises still rely on outdated systems and incomplete data, which leaves them vulnerable to disruption and financial loss. With the right intelligence, small suppliers can move from the margins to the center of sourcing strategies, creating supply chains that are stronger, smarter, and built to last.”
Key takeaways:
· Most organizations admit they lack the systems and intelligence to scale these partnerships, leaving significant untapped value on the table.
· 96% of executives say they would source more from small suppliers if it were easier to find, vet, and onboard them, yet data shows companies allocate an average of just 7% of total spend to small suppliers. This shows a ceiling on small supplier engagement, created by outdated processes and limited visibility.
● 91% of leaders say they’ve adjusted or plan to adjust their small supplier sourcing strategies due to tariffs, with 71% increasing spend with U.S.-based small suppliers.
● Leaders reported improved quality and performance (56%), greater supply chain resilience (53%), and reduced costs (50%) as the most frequent benefits.
● 41% of enterprises experienced a failed small supplier relationship in the last 12 months because of poor vetting. Reported consequences included financial loss (66%), delays to major project or product launches (48%) and direct customer dissatisfaction (48%).
