A new report from Supplier.io, Scaling Small: Inside the Enterprise Push to Source Smarter and Stay Competitive, shows why enterprises are turning to smaller suppliers to drive resilience and performance, as tariffs are directly reshaping sourcing strategies.
The survey of more than 150 CEOs, CFOs, and procurement executives found that 91% of executives have adjusted or plan to adjust small business sourcing in response to tariffs. Further, 71% are increasing spend with U.S.-based small suppliers, while 26% are sourcing more internationally.
Smaller suppliers deliver value, the report suggested, as 56% of those surveyed cited improved quality, 53% resilience, and 50% cost savings as measurable ROI from small suppliers.
Despite this, small suppliers still account for just 7% of supplier dollars, reflecting the lack of scalable systems to find, vet, and onboard them. Worse, 41% of enterprises reported failed small supplier partnerships in the past year. Supplier.io, a provider of supplier diversity and small business intelligence technology, says that reinforces the need for stronger onboarding and performance management tools.
“The data is clear: enterprises see small suppliers as a path to greater resilience, agility, and cost savings. But most teams still struggle to scale their work with SMBs effectively,” the report concludes.