Supplier Survey 2025/26: How Suppliers are Redefining Working Capital

In November 2025, SAP Taulia conducted its annual supplier survey. Now in its eleventh year, 10,804 suppliers from 129 countries were surveyed to uncover the latest trends in supply chains, and the opportunities and challenges facing businesses globally. Respondents encompassed a variety of job roles, including business owners, sales, and finance departments.

The following represents an initial overview of the findings.

In a global environment where persistent uncertainty is the new norm, the health of a business is inextricably linked to the health of its supply chain. This year’s survey revealed that suppliers maintain a resilient and optimistic outlook as they grapple with a new set of complex challenges in a dynamic market.

As buyers preserve their cash and pay their invoices later amid macroeconomic pressures, this creates a widening payment gap that puts a significant strain on suppliers’ working capital. This is fueling a fundamental shift in the financial landscape: The rise of the supplier.

This year, our findings show that:

• There is a clear demand for flexible, reliable, and supplier-controlled approaches to financing.
• Suppliers are proactively seeking liquidity on their own terms.
• They are moving away from traditional, rigid financing structures.
• Suppliers are evaluating every lever, from early payment programs to external liquidity options, to control their cash flow.

Theme 1: Cautious Optimism Amid Persistent Uncertainty

After two years of peak optimism, supplier sentiment has moderated slightly, with 82% expressing optimism compared to 85% in 2023 and 2024. This signals a new mood of caution.

Despite this dip, optimism levels remain high, as a vast majority of respondents are still optimistic about the year ahead. A small minority reported feeling pessimistic (4%), while 14% felt neutral.

This cautious sentiment is also reflected in a fundamental shift in supplier concerns. While growth remains a top priority, its focus has softened (46% vs. 53% last year) as suppliers navigate the challenging balancing act between innovation, risk and technology.

Concerns about new threats are increasing, particularly cybersecurity risks (28%) and tariffs (24%). Given the monumental implications these forces have on supply chain disruptions, suppliers may be focused on building resilience to mitigate these risks.

Amid these shifting priorities, AI is the only major area showing an upward momentum with concern growing from 38% previously to 44% this year, highlighting AI’s double-edged nature. While suppliers may be enthusiastic about leveraging AI’s predictive qualities to forecast supply chain risks, they may be apprehensive about the challenges of scaling adoption and defining clear business cases for investment.

Our AI in Procurement report also reveals a growing tension between strategic need and execution: while 82% of procurement leaders are eager to adopt AI, only 35% of their organizations’ leaders are prioritizing investment in procurement and supply chain management. Together, these findings paint a clear trend of supply chains that recognize AI as essential but remain uncertain of bridging the gap between investment and action.

Theme 2: The Impact of Tariffs

Tariffs now carry major implications for businesses worldwide. Since the Trump administration’s tariffs were announced on Liberation Day, ripples of uncertainty continue to be felt globally.

Suppliers have been impacted by tariff pressures, with one in four (25%) reporting squeezed profit margins and 23% facing increased input costs. In response, 18% are raising prices for customers to ensure business continuity.

However, a closer look reveals distinct differences across the globe. Suppliers in North America are feeling the most direct financial impact. For them, the top impact is the rising cost of goods, with 26% and 25% of suppliers reporting this in the US and Canada, respectively. Mexico stands out as feeling the most intense pressure, with squeezed profit margins being the top impact for 37% of suppliers.

By contrast, the dominant theme across Europe and Australia is uncertainty. Suppliers from these regions frequently chose “Unsure/cannot say” as one of their top three responses, notably in Germany (30%), France (32%), the UK (34%), and Australia (31%). This highlights a widespread sense of unpredictability exacerbated by trade policies.

The pervasive uncertainty caused by tariffs, with over one in five suppliers globally (22%) unable to quantify the impact, recalls our oCFO Perspectives eBook, The Impact of Tariffs on Finance. Tariffs have caused supply chain complexity, requiring businesses to rethink production, supplier networks, and cost structures. Despite this, tariffs can be a catalyst for greater resilience and adaptability among businesses.

Theme 3: The Widening Payment Gap

The gap between when suppliers expect to be paid and when they receive payment is widening. Late payments are on the rise, with over half of suppliers (55%) being paid late, marking a slight increase from 51% last year. On-time payments have declined to 37% this year, compared to 42% in 2024. This shift suggests that buyers are preserving their own cash as a critical buffer against macroeconomic uncertainty, leading to cash flow pressures falling on their suppliers.

Suppliers are therefore now seeking levers to optimize their cash flow and ensure operational continuity. When asked about the reasons for using early payments, the primary motivations cited by suppliers were to bridge cash flow gaps (28%), ensure payment predictability (21%), and to fund day-to-day operations (20%). These underscore how unreliable and delayed payments are fueling suppliers to get on the front foot to ensure cash flow.

Theme 4: The Rise of the Supplier: The Demand for Flexible and Reliable Early Payments

Faced with liquidity pressures as late payments persist, suppliers are taking control of their own cash flow via working capital solutions. This year, interest in early payments has climbed to a five-year high, with nearly seven in ten suppliers (66%) indicating this, marking an increase from previous years (63% in 2024 and 61% in 2023).

Suppliers continue to remain aware of the barriers presented by traditional programs, citing being in a good cash position (29%), high costs (22%), and not being offered the option by their customers (21%) as the top reasons for not taking early payments. These responses suggest that while education may still be needed to inform suppliers about the benefits of early payment programs, the perception of these programs as a costly, emergency-only tool indicates a calculated decision-making process regarding their cash flow.

This marks a turning point in global supply chains. Suppliers are no longer just asking for liquidity; they are turning towards flexible and affordable options that put them in control. This is powerfully illustrated by the financing tools they are using. Alongside early payment programs (16%), suppliers are turning to on-demand, self-serve options such as credit cards or virtual cards (22%) and lines of credit (16%), which rank among the top 5 most used sources of external liquidity.

This is the new paradigm of the empowered supplier. Suppliers’ clear preferences for flexible, on-demand financing send a clear mandate to the market to provide solutions that offer control, transparency, and reliability.

Theme 5: SAP Taulia Empowers Suppliers with Simplicity, Control, and Partnership

As outlined above, suppliers today face a dual challenge: worsening payment delays and financing solutions that lack the flexibility and transparency they require. This has fueled a fundamental shift toward a supplier-centric approach, where businesses seek greater control over their own working capital.

The experience of suppliers from our network confirms that SAP Taulia is delivering on this new mandate, with 76% of suppliers rating their experience as positive. This satisfaction is driven by an experience consistently described as “simple,” “easy to use,” “efficient,” and “user-friendly.”

Crucially, the value is most apparent for suppliers who engage with our solutions. The experience score soars to an 87% positive rating among suppliers who have used early payments in the last year.

As a trusted partner for businesses, SAP Taulia builds scalable, supplier-first early payment programs that provide the control and flexibility suppliers need. Through an intuitive portal, suppliers can manage their invoices and choose to get paid on their terms, accelerating payment by an average of 47.8 days. By providing predictable cash flow at highly competitive rates without running auctions, we empower suppliers to strengthen their financial resilience and focus on high value activities.

A Strategic Imperative for the Year Ahead

The dynamic between buyers and suppliers is evolving. As businesses navigate ongoing uncertainty, the widening payment gap is no longer just a business challenge, but a catalyst for the rise of the empowered supplier.

Suppliers are now more discerning and proactively seeking financing solutions that offer flexibility and control, departing from unreliable payment practices. Looking ahead, the takeaway for buyers is clear. Those that offer predictable, on-time, or early payment will be valued partners, securing the trust and partnership needed to thrive in today’s dynamic environment.