In a recent article on scdigest.com, the author of the article presents some key aspects on why integrating the sourcing and supply chain function make sense.
They are definitely synergies in having this as one function.The general practice in manufacturing companies is that both of these functions are part of the same organization but not fully integrated. Some of the aspects where integrated sourcing and supply chain can benefit from
Both supply chain and sourcing deal with geographically dispersed suppliers.
Integrated sourcing and supply chain will derive benefits from end of end visibility and hence avoiding customer experience eroding events.
Standardization of processes
Having an integrated group would increase the end to end visibility of supply chain from design to delivery.
Provides a better opportunity to standardize similar processes and reengineering of processes to drive better efficiencies
Sharing of knowledge and information
Sourcing and Supply can both benefit by knowledge sharing in the following areas
Global trade knowledge: Specific issues around trade compliance laws, transportation costs,inventory management etc.
Supplier information: whether It is the basic supplier profile or information about supplier performance and supplier risk, both sourcing and supply chain needs that information to function effectively.
You can read the full article at the below link