Supply chain stability has emerged as a top priority for procurement leaders, due to the current instability and volatility of the economic landscape.
Our recent webinar featuring insights from responsible sourcing professionals shed light on how organizations are navigating supply chain risk and volatility by strategically engaging small, diverse, and local suppliers.
These best practices were derived from extensive industry research, customer interviews, and real-world case studies—representing the collective wisdom of leaders in the field, rather than the opinion of Supplier.io.
The Growing Need for Supply Chain Resilience
According to The Hackett Group’s 2025 Chief Procurement Officer (CPO) survey, cost control remains the top priority for procurement leaders, but supply chain continuity and volatility have surged in importance. As recent global events have demonstrated, procurement teams must be proactive in mitigating risk, and supplier diversification has emerged as a key strategy.
Supplier.io’s research, which analyzed $168 billion in spend data across 398 companies, revealed that organizations actively investing in alternate sourcing strategies—including partnerships with small and diverse suppliers—are seeing stronger supply chain resilience and cost savings in volatile markets. The findings were further reinforced by over 400 survey responses and 34 in-depth interviews with procurement leaders.
Best Practices from Industry Leaders
The webinar uncovered five key strategies used by responsible sourcing leaders to help their organizations mitigate risk and drive business value:
1. Get in the Game: Taking Proactive Action
Leaders emphasized the importance of moving beyond a “wait and see” approach. Approximately 46% of responsible sourcing leaders are actively engaging with key stakeholders to shape strategy and demonstrate the business value of supplier diversification.
One procurement executive from a manufacturing company shared how their team worked closely with category managers to expand sourcing options, ensuring production continuity when a major supplier faced unexpected disruptions. By identifying and onboarding new small and local suppliers, they mitigated risk while maintaining cost efficiency.
2. Identify High-Risk Categories and Build Alternative Supplier Networks
Organizations that successfully navigate supply chain volatility start by assessing their most vulnerable categories. This involves:
- Identifying critical spend areas with potential bottlenecks
- Engaging category managers to assess risk exposure
- Mapping alternative supplier options to ensure continuity
For example, a global electronics firm faced component shortages due to supply chain disruptions in Asia. By leveraging supplier intelligence data, they identified over 100,000 potential alternative suppliers, reducing their dependency on a single region and enhancing their supply chain resilience.
3. Expand Engagement with Existing Small and Diverse Suppliers
Most organizations already have relationships with small and diverse suppliers but may not fully utilize them. Leaders highlighted the importance of:
- Ensuring accurate supplier data to uncover overlooked opportunities
- Strengthening partnerships with existing diverse suppliers to scale capacity
- Reviewing contract terms to facilitate easier engagement
A financial services company shared how they streamlined their onboarding process for small suppliers, reducing barriers related to insurance and payment terms. As a result, they increased spend with these suppliers while also improving their procurement agility.
4. Show Up with Proactive Insights
Procurement leaders who position themselves as strategic advisors rather than compliance enforcers are gaining traction. Successful teams:
- Analyze supplier data to identify new sourcing opportunities
- Benchmark against industry peers to set actionable goals
- Engage business leaders with insights that drive strategic decisions
A transportation company illustrated this by using benchmarking data to demonstrate how their responsible sourcing strategy reduced costs and increased supplier performance. This proactive approach strengthened their credibility with executive leadership, securing greater buy-in for future initiatives.
5. Look Everywhere: Expanding the Supplier Search
Rather than limiting sourcing efforts to traditional supplier lists, leaders are broadening their search using advanced supplier intelligence tools. This involves:
- Building heat maps of supplier capabilities by region
- Vetting new suppliers with robust data validation
- Developing small suppliers for long-term growth
A retail company found success by sourcing more locally, reducing transportation costs, and ensuring faster delivery times. By shifting just 5% of their spend to local small businesses, they achieved significant savings and enhanced supply chain agility.
Key Takeaways: Driving Measurable Business Value
The webinar reinforced that responsible sourcing is not just a corporate social responsibility initiative—it’s a strategic business imperative. Organizations that integrate small, diverse, and local suppliers into their procurement strategies see tangible benefits, including:
- Reduced risk and volatility by diversifying supply sources
- Cost savings through competitive pricing and localized logistics
- Market expansion by aligning with community-based suppliers
- Enhanced innovation by engaging with agile, specialized businesses
While supply chain challenges persist, responsible sourcing leaders are proving that a proactive approach—backed by data and strategic engagement—can turn volatility into opportunity. By leveraging best practices from industry peers, procurement teams can not only navigate risk more effectively but also drive long-term business growth.
For more insights, download the full Best Practices for Alternate Sourcing report and discover how leading organizations are transforming their supply chains today.