Sourcing teams and interdepartmental integration

Internal integration is often mentioned as a prerequisite for conducting strategic sourcing, as multiple functional departments must collaborate on creating value-creating activities amongst them. Though it is one of many possibilities, the use of cross-functional teams is often the most commonly proposed solution to ensure internal integration. This paper presents an exploratory case study evaluating the use of internal integration mechanisms in a cross-functional sourcing process. Two commodity categories are examined. One is organised in a cross-functional team, while the other is not. Findings indicate that informal integration mechanisms not promoted by management or the organizational structure may contribute to the overall level of integration.