Survival of the fittest in supplier management means driving competition by focusing heavily on
price reduction, with minimal emphasis on building long-term relationships. This approach treats
suppliers as interchangeable, encouraging them to compete aggressively for contracts.
It can yield short-term cost savings but risks damaging supplier collaboration, innovation, and
resilience. It is suitable for commodities or non-strategic items where price is the dominant factor.
Other approaches differ:
Trust-based or partnership models balance price with collaboration.
No-cost modelling focuses on process transparency.
Strategic alliances prioritise innovation and value creation.
Category Managers must carefully choose when to apply “survival of the fittest” as it may undermine
long-term supplier stability if used indiscriminately.
[Ref: CIPS L5M6 Study Guide, p.160 – Supplier relationship models]
