Whoever coined the phrase “strength in numbers” probably did not have recession-era supply chains in mind. As manufacturers regroup for economic recovery, many are drastically thinning their supplier ranks in an effort to cut costs, risks, and complexity.

Japanese consumer electronics giant Sony Corp. served up a stunning example in May, when it announced that it would cut more than half of its 2,500 suppliers out of the picture. Also, in the spring, German industrial conglomerate Siemens said it would eliminate 20% from its supplier base, which stands at more than 100,000 companies and a staggering 370,000 locations, to help it improve on a supply process that purchases about €42 billion worth of goods a year.