Plan Now: CPO Strategies to Build Resilience with Small Suppliers

How CPOs will use small suppliers to cut risk and cost in the next 6–12 months, and the data steps to scale with confidence.

If 2025 was about stabilizing, now is the time for decisive moves. CPOs tell us their priorities are clear: protect cost, ensure continuity, and accelerate digital. Hackett’s CPO pulse check and Supplier.io’s Executive Survey of 150+ leaders confirm where procurement teams are focused next:

Small suppliers are central to CPO plans for cost, continuity, and speed in the next 6–12 months.
Biggest blockers: finding, vetting, and onboarding. The fix is a data-first approach and continuous monitoring.
Do next: shift 10–20% of select categories to qualified small suppliers, fund data enrichment, and pilot AI-assisted discovery.

These insights came from a recent webinar with the Hackett Group on CPO priorities and the growing focus on small suppliers.

Key takeaways

Cost reduction and supply continuity stay at the top of the scorecard, with digital and AI rapidly rising as enablers.
CPOs are rebalancing country of origin and adding domestic or nearshore alternates. Small, local suppliers are the practical lever.
Leaders report measurable gains from small suppliers: better performance, greater resilience, and lower costs.
Scale stalls without better data and standardized processes. The fastest wins come from unifying supplier intelligence and monitoring continuously.
A shared ROI model across the C-suite keeps investment aligned and momentum high.

Why this matters now

The next two planning cycles will be defined by decisive moves, not experiments. CPOs are being asked to lower cost, protect continuity, and modernize the operating model at the same time. Small suppliers help on all three fronts. They shorten lead times, create optionality, and often deliver stronger service in categories where agility matters. Digital acceleration is the multiplier, but it only works if the data foundation is solid.

“Cost reduction and continuity are still in focus, but digital transformation has clearly elevated. Teams are modernizing technology and embedding AI, which will change how procurement operates.” — Chris Sawchuk, Principal and Global Procurement Advisory Practice Leader, The Hackett Group

Priority 1: Lock in cost and continuity with optionality

CPOs are reducing exposure to single sources and long supply lines. The plan is to diversify country of origin and create domestic or nearshore alternates that can be activated quickly. Small and local suppliers sit at the center of this strategy because they improve responsiveness and reduce logistics and tariff risk.

“There has been a move to resource across multiple countries, and that is driving more domestic sourcing where capabilities exist.”

— Chris Sawchuk, The Hackett Group

Do next:

Identify 3–5 categories where you can safely shift 10–20% to qualified small suppliers.
Build a short list of domestic and nearshore alternates per category, then pre-vet them.
Add on-time delivery and lead time variance to executive scorecards so progress is visible.

Priority 2: Accelerate digital and AI by funding the data layer first

AI pilots only succeed when supplier data is reliable and current. The fastest path is to unify supplier records, enrich profiles with certifications, performance, sustainability, and risk signals, and move from one-time onboarding checks to continuous monitoring. That unlocks AI-assisted discovery, faster qualification, and smarter risk calls.

“We are seeing an accelerated look at how to modernize technology infrastructure to include AI. That will impact the operating model.”

— Chris Sawchuk, The Hackett Group

Do next:

Run a 4–6 week data enrichment sprint to clean and complete supplier profiles.
Stand up a continuous monitoring cadence for risk and performance, not just onboarding.
Pilot AI-assisted discovery to widen the top of the funnel for small, local suppliers.

Priority 3: Scale small suppliers by fixing the execution gap

Intent is high, but scale is hard when processes are inconsistent and data is incomplete. The friction shows up in three places: complex intake, unclear or uneven vetting, and limited visibility into performance and risk. These gaps slow adoption and increase failure risk.

“There may be a lack of awareness of what small suppliers can do, especially in this environment. That gap in understanding holds back scale.”

— Chris Sawchuk, The Hackett Group

Do next:

Map your pipeline end-to-end: Find → Vet → Onboard → Monitor.
Standardize intake with required fields, SLAs, and a single source of truth.
Codify vetting with simple scorecards, references, and past-performance checks.
Publish a quarterly small-supplier pipeline report so stakeholders see momentum.

Priority 4: Align the C-suite on a shared ROI so investment follows

CFOs emphasize savings. CEOs often focus on speed and growth. Procurement leaders track resilience and quality. When measured in isolation, small-supplier value is underestimated and funding stalls. A shared ROI model keeps everyone aligned.

Do next:

Use one scorecard across pilots: cost, continuity, speed to market, quality.
Add community and economic impact where relevant to reflect enterprise goals.
Report results monthly, then reallocate spend to the highest-performing small suppliers.

Data highlights:

91% of leaders adjusted small-supplier strategy due to tariff and trade volatility.
71% are increasing sourcing from U.S. small suppliers, with more nearshore options planned.
Reported benefits from small suppliers: 56% improved performance and quality, 53% greater resilience, 50% reduced costs, 44% faster time to market.
Top blockers to scale: onboarding complexity, unclear vetting, limited performance and risk data.
When vetting fails, impact is real: financial losses, delays, and customer issues that are avoidable with better data and monitoring.

“Starting early in the year we saw the threat of tariffs become reality. That drove action. Organizations that had done scenario planning were able to move quickly.”

— Chris Sawchuk, The Hackett Group

“Country of origin is a lever. If you can source inside the U.S. where the capabilities exist, you reduce risk and increase responsiveness.”

— Chris Sawchuk, The Hackett Group

“Digital transformation is not separate from the operating model. Embedding AI will change how procurement delivers value.”

— Chris Sawchuk, The Hackett Group

FAQ

How are CPOs planning to use small suppliers in the next 6–12 months?

They are shifting 10–20% of select categories to qualified small suppliers, adding domestic and nearshore alternates, and using continuous monitoring to manage risk and improve responsiveness.

What blocks small-supplier scale the most?

Discovery, vetting, and onboarding. Teams are standardizing intake, using scorecards and references, enriching data continuously, and piloting AI-assisted discovery to widen the funnel.

Which metrics should we track to prove value?

Cost savings and avoidance, supply continuity, lead time, on-time delivery, defect rate, stakeholder satisfaction, plus community impact where relevant.

Where should we start if our data is messy?

Begin with a time-boxed enrichment sprint to create a single source of truth, then add continuous monitoring so updates flow to buyers and analytics automatically.

Conclusion and next steps

Over the next year, winning CPOs will pair small-supplier optionality with a data-first, AI-ready operating model. That combination lowers cost, protects continuity, and speeds decisions. Start with the data, standardize the path from discovery to monitoring, and build a shared ROI scorecard so investment follows results.