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The dynamics of global supply chains have always been complex, but recent challenges have highlighted just how rapidly the landscape can shift. With rising costs, logistical hurdles, and geopolitical tensions, the question of whether the number of suppliers is going up or down has become a crucial point of debate for businesses worldwide. This article dives into the evolving nature of supplier relationships, supported by the latest industry statistics and trends, and explores how the forces of disruption are shaping the future of sourcing and supply chains.
The Current State of Global Supply Chains
Over the past few years, global supply chains have faced an array of disruptions. The COVID-19 pandemic, trade wars, natural disasters, and the ongoing energy crisis have all placed significant pressure on procurement teams and suppliers. These disruptions have made it clear that the traditional supply chain model—where companies rely on a vast network of suppliers for a wide array of products—may no longer be as viable as it once was. The question that emerges, then, is whether the number of suppliers is shrinking or growing as companies respond to these challenges.
The reality is a bit more nuanced. While some industries are seeing a reduction in the number of suppliers as businesses consolidate and streamline their operations, others are experiencing growth in their supplier base as they seek out new partners and diversify their risk. To understand where the number of suppliers is headed, it’s important to break down the key trends and statistics that are shaping the current state of the supply chain.
1. Supply Chain Disruptions and Their Impact on Supplier Relationships
One of the most significant factors driving changes in supplier networks is the increased frequency and severity of supply chain disruptions. According to Supply Chains Under Pressure: What Our Q1 2025 Poll Reveals, nearly 60% of supply chain leaders reported experiencing disruptions in the past year, ranging from delayed shipments to shortages in key materials. These disruptions have led many companies to reconsider their reliance on single-source suppliers.
In fact, 67% of companies surveyed in the 2025 Global Supply Chain Trends Report said they are diversifying their supplier base to mitigate risk and ensure business continuity. The need for diversification, however, doesn't necessarily mean an increase in the total number of suppliers. Instead, companies are often forming deeper, more strategic relationships with a smaller group of suppliers that can offer resilience during times of uncertainty.
Navigating Cost Pressures: Strategic Insights for 2025 highlights that the ongoing inflationary pressures, especially in raw materials, have pushed many businesses to seek more competitive pricing from suppliers. To navigate this, many companies are turning to multi-sourcing strategies—working with several suppliers across different regions to protect against price volatility and capacity constraints.
2. Supplier Consolidation: Is It the New Trend?
While diversification is a key strategy for some businesses, others are going in the opposite direction. Supplier consolidation is a growing trend as companies look to strengthen relationships with fewer suppliers, offering larger contracts in exchange for better pricing or preferential treatment. This is particularly true for industries with complex, high-cost supply chains, such as automotive manufacturing and electronics.
The 2025 Industry Trends & Turbulence Report notes that 45% of procurement leaders are opting to reduce the number of suppliers they work with in favor of establishing deeper, more integrated partnerships. This approach allows companies to negotiate more favorable terms, such as better delivery times, customized products, or exclusive access to scarce materials. However, supplier consolidation also comes with risks. The more reliant a company becomes on a smaller number of suppliers, the more vulnerable they become to disruptions in those suppliers' operations.
This strategy is also being shaped by the growth of technology platforms that enable better visibility and management of a smaller but more strategic supplier base. Supply Chain Management Statistics & Trends points out that 57% of companies are adopting advanced technologies like AI and machine learning to manage supplier relationships, allowing them to gain real-time insights into potential risks and make more informed sourcing decisions.
3. The Growing Role of Sustainability and Ethical Sourcing
Another factor influencing the number of suppliers in a supply chain is the increasing demand for sustainability and ethical sourcing. According to 20+ Supply Chain Statistics & Facts in 2025, 75% of consumers say they would stop purchasing from companies that are not committed to sustainability practices. In response, businesses are reevaluating their supply chains to ensure they meet these standards, often leading to the addition of new suppliers who specialize in sustainable practices.
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are number of suppliers going up or down - Supply Chains Under Pressure: What Our Q1 2025 Poll Reveals