Sauron actually had more men available to him than Orcs. A lot of Sauron's force was comprised of Men, not 'puny orcs.' Also, Saruman wasn't the one who originally came up with this 'cross-breed' of Orc-Men. it's only something he 'rediscovered' and found out:
Quote:
"Finally, there is a cogent point, though horrible to relate. It became clear in time that undoubted Men could under the domination of Morgoth or his agents in a few generations be reduced almost to the Orc-level of mind and habits; and then they would or could be made to mate with Orcs, producing new breeds, often larger and more cunning. There is no doubt that long afterwards, in the Third Age, Saruman rediscovered this, or learned of it in lore, and in his lust for mastery committed this, his wickedest deed: the interbreeding of Orcs and Men, producing both Men-orcs large and cunning, and Orc-men treacherous and vile."~Morgoth's Ring
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