The Trust Factor: How Strong Supplier Relationships Can Fuel Growth

Supply chain experts share how relationships built on trust can help small businesses survive in a time of market volatility.

BY INC. CUSTOM STUDIO

It’s no secret that many small business owners (SMBs) are reeling from uncertainty in 2026. With shifting trade policies, geopolitical instability, and fluctuating consumer demand, SMBs are—understandably—getting whiplash fielding each new challenge.

“The exceptional has become the norm,” says Melanie Hilton, SVP of Customer Success at GS1 US, a not-for-profit organization that develops global standards for barcodes and product identification systems. “Since 2018, we’ve seen one thing after another expose uncharted territory for business leaders. There are so many external pressures that retailers must take into consideration: regulatory obligations, visibility obligations, consumer obligations, and the fact that the world is changing so much every day.”

This high-stakes environment has put supply chains under a glaring spotlight, where even the most minor missteps can have outsized impact on business performance. And in turn, the retailer-supplier relationship is a make-or-break factor for small and midsize brands. Hilton and other supply chain experts share a few ways that retailers can build trust with suppliers, help withstand the stresses of today’s business climate, and set their brand up for long-term growth. 

Start small. Don’t rush.

By necessity, most SMBs start with small production runs. Caroline Grace, founder of Product and Prosper, a consultancy firm for consumer brands, points out that the need to start small is one of the biggest challenges for entrepreneurs because it’s hard to find a co-manufacturer that will do low minimum order quantities (MOQs). And because brands often put themselves under immense pressure to get to market, when they do find a manufacturer that will give them a shot, they often overcommit on their initial orders.

“If it’s your first time entering the market, don’t go over $10,000 as an MOQ,” says Grace. “And here’s why: You’re not going to love the first product they make. That’s just reality. You need room to iterate without having $10,000 plus of product you can’t sell sitting in a warehouse.”

Aubrey Lenyard, co-director of the Georgia Tech Food and Beverage Accelerator, says being up front with co-manufacturers on whether you may or may not be able to meet their MOQ can help build trust. “If you’re honest and you share those things, the co-manufacturer might be willing to take you on, but the honesty has to be there first,” he says.

Lay a foundation of transparency—backed by data

Self-imposed time pressure can also cause brands to miss red flags from a supplier and, in turn, erode trust on both sides. Rushing to market often results in skipping some of the vetting required to protect not only a business owner’s brand, but also the customer experience with the product.

For example, Hilton says that without proper vetting, it’s quite common for inexperienced business owners to lose control of their product to the “third shift,” in which a dishonest supplier copies a product at a lower quality and then sells counterfeits behind the brand’s back. Similarly, suppliers who aren’t helpful or transparent about their third-party certifications—such as fair trade, non-GMO, and organic—can result in product recalls and other safety issues, which can be catastrophic for a small brand.

“There’s nothing worse than spending thousands of dollars to bring something to market only to have to pull it because it failed a quality test,” Hilton says, adding that 61 percent of product recalls come from a supplier failure. “That’s why third-party verification and certifications from suppliers and co-manufacturers are critical. You want to be working with a partner where you have assurances, there’s data behind those claims, and it’s not just smoke and mirrors.”

It’s important to make sure the manufacturer has a valid standing in regulatory domains and can support product claims with data. Advanced tracking technology such as 2D barcodes can store detailed information about a product that ensures smooth passage through every touchpoint of the supply chain, from the manufacturer to the co-packer to the warehouse and all the way to the point of sale. This robust data tracing not only helps retailers have more visibility and control over their supply chain, it also helps to build trust with consumers.

“Customers are increasingly becoming interested in where the product came from, where the materials were sourced, how the product was manufactured according to labor standards,” Hilton says.

To further vet a manufacturer, Grace recommends going to visit the facility in person. “You need to see the machinery and understand the operational labor situation firsthand,” she says. “Don’t just take their word for it.”

Lenyard adds that open communication is a major factor in choosing a co-manufacturer. “You have to ask yourself, are you able to get them on the phone? Will they answer your emails? Will they allow you into the space when they’re getting ready to run? All of those things really play into if this is the right relationship,” he says.

Diversify your supply chain

Given the ongoing volatility in global trade, all three experts highlighted supplier diversification as a key differentiator for SMBs looking to strengthen their supply chains. “You build resilience into your supply chain by not being dependent on any single relationship or channel,” Grace says. “Long term, this diversification strategy is how you win.”

Hilton acknowledges that, while it can be difficult for small businesses to diversify with limited resources, this could be an opportunity to take a chance on a smaller supplier or co-manufacturer. However, Leynard cautions that—much like dating—the success of this strategy all hinges on finding the perfect match.

“Sometimes a co-manufacturer will say ‘yes’ to a smaller founder because it’s a one-off deal for them,” says Lenyard. “Maybe they had some space on their calendar, and they see that they could do this small run, but they’re not really willing to grow with that founder. The perfect match really is a [manufacturing] partner that is willing to scale and grow with them.”

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