When One Supplier Has Too Much Leverage

Most owners can describe their customer concentration in some form, even if only as a rough instinct about which account matters most. Ask the same owners what share of their materials, inventory, or critical services flows through a single supplier, and the answer is usually less certain. The risk gets less attention because it sits on the cost side of the business, where dependencies build through convenience rather than strategy.

The exposure shows up in two forms. Disruption occurs when a supplier fails, is acquired, sharply raises prices, or extends lead times during a busy season. The other form is leverage. A vendor that knows it carries most of a customer's volume has little reason to compete on price or terms, and the customer has limited room to negotiate.

S.M.A.R.T. Management approaches supplier dependency the way it approaches other operating risks. It gets specific by naming which vendors the business could not replace within 30 days.

WEEKLY RECOMMENDATION

This Week's Pick: The I in Team

Positive influence means noticing who people have become. Recognition that arrives only after an employee lobbies for it teaches the team that growth must be marketed to be noticed. Unprompted recognition teaches the team that the owner is paying attention.

FEATURED VIDEO

The Leadership Choice That Builds Stronger Cultures

In this episode of Daily Influence, Brian Smith explores why gratitude is more th\an an emotion. It is a leadership discipline that shapes how people experience their work and their leaders. He explains how recognizing progress, celebrating effort, and reinforcing what matters can strengthen accountability and engagement without lowering standards. The conversation connects gratitude with S.M.A.R.T. Management and the idea that leaders influence culture through what they consistently notice, recognize, and reinforce.

SMB SIGNALS

84%

of firms importing inputs from abroad said that inputs had become more expensive from 2024 to 2025.

  • Business Insurance
    An ERGO NEXT survey of 501 U.S. small business owners found that 73% either have no business insurance or lack coverage for major risks they face.

  • Business Hiring Expectations
    U.S. small business hiring expectations strengthened sharply in July, with a net 20% of NFIB respondents planning to create jobs over the next three months, up nine points from June.

EVENTS

NYC Small Business Conference (New York, NY - October 15, 2026)

The NYC Small Business Conference brings small-business owners, entrepreneurs, founders, and decision-makers together at the Javits Convention Center for workshops, networking, exhibits, and discussions on marketing, finance, sales, operations, and scaling.

Aileron Summit 2026 (Tipp City, OH - September 22-23, 2026)

Aileron Summit returns September 22-23 in Tipp City, Ohio, for owners, presidents, CEOs, and senior leaders of privately held companies.

MORE TO READ

2026 Global Human Capital Trends

Deloitte's 2026 Global Human Capital Trends research, based on more than 9,000 business and HR leaders across 89 countries, found that 88% of leaders say accelerating how people, skills, and resources are orchestrated is extremely or very important, but only 7% say their organizations are making great progress.

The Meeting Inventory

Cost is not the only measure of a meeting, since some gatherings build alignment and trust that never show up as a decision. The point is not fewer meetings. It is knowing what each one is for and what the business pays for it.

WEEKLY INSIGHT

"The best leaders don't just adapt to change — they anticipate it and prepare their teams."

— SMART Advantage Team

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