Small Suppliers in Enterprise Sourcing Strategies

This report details the increasing reliance of enterprises on small suppliers to navigate disruptions in supply chains caused by tariffs, inflation, and geopolitical tensions. Based on a survey of over 150 enterprise executives, the findings indicate that 91% of leaders have adjusted their sourcing strategies in response to these challenges. The report outlines the benefits of working with small suppliers, including improved quality, greater resilience, and reduced costs. However, it also highlights significant barriers to scaling small supplier sourcing, such as difficulties in finding, vetting, and onboarding these suppliers. The consequences of failed partnerships due to inadequate vetting are also discussed, with financial losses and project delays being the most common outcomes. The report emphasizes the need for better tools and processes to enhance small supplier engagement and suggests that enterprises must elevate small supplier sourcing to a core strategy to fully realize its potential benefits.