Executives' Reactions to a Prescriptive Strategic Procurement Planning Model

Procurement has recently received increased corporate recognition, and its responsibilities have significantly expanded. Hence, a need has arisen for conceptual, integrative models that assist purchasing executives to more effectively manage their increased responsibilities in a dynamic environment. One such model is the Product Life Cycle (PLC) concept. Recently, two researchers formulated a set of procurement strategies for each PLC stage, which they recommended purchasing managers implement. To test this model, practitioners from five chapters of the Institute for Supply Management were asked to indicate the importance level and usage frequency of each procurement strategy. Almost 81% of the 145 purchasing strategies were rated "important" or higher by respondents, and about 58% were "used frequently" or more often. Executives were also asked to assign each procurement strategy to the sales phase they thought most appropriate. Their assignments matched almost 60% of the prescriptive model. Above-average assigners were more likely than their average/below-average counterparts to have worked 13 or more years in procurement, earned a college degree, and majored in business or purchasing as well as be professionally certified (i.e., CPM) and at least a manager or higher. Limitations and implications are discussed.