SCI Group and 3SO Announce Outsourcing Partnership to Deliver
Regionalized Supply Chain Services
Wed Sep 9 2009, 7:00 am ET
SCI Group Inc. announced today a new strategic partnership with Shared Support Services
Southeastern Ontario (3SO) to operate the logistics portion of its regional supply chain initiative
that serves six member hospital organizations from Trenton to Brockville, Ontario.
The logistics services solution, operated by SCI Logistics Ltd., a wholly owned subsidiary of
SCI Group Inc., was created to support 3SO's mission of reducing total supply chain costs while
providing superior service levels that enable hospitals to direct savings into patient care. A key
feature of the solution is a central distribution centre located in Kingston that will provide fast
and flexible service to each member hospital.
"Having a distribution facility centralized in our region provides us with the responsiveness and
agility required to allay the concerns of our member hospitals regarding the transition to this new
service arrangement," said Lyndon Smith, general manager of 3SO. "Another key factor in our
decision to use SCI Logistics Ltd is their experience using technology and advanced supply
chain practices to transform processes and provide visibility throughout the supply chain. The
fact that both of us are on the same technology platform will enable us to achieve additional
efficiencies during implementation."
SCI's services to 3SO represent a slight departure from other models in the third party logistics
market. 3SO will manage the procurement of the surgical and medical products and SCI will take
ownership of the majority of the inventory and manage all fulfillment activities to each of the
member hospitals. This gives 3SO flexibility regarding the range of products they wish to order
and full visibility on their component costs while, at the same time, leveraging the consolidated
demand from the hospitals and obtaining better prices for their products. SCI's solution will help
3SO decrease overall supply chain operating costs to free up resources to be used for direct
patient care.
"3SO's focus on finding new and innovative ways to manage its supply chain is a direct match to
how SCI Logistics Ltd. and other members of SCI Group operate," states Louise Villeneuve, vp
of business development and marketing at SCI Group. "We always look for new ways of
integrating technology, people and processes into best-in-class solutions for our clients and I
think this approach was recognized and valued by the 3SO team."
About SCI Group
SCI Group, a member of the Canada Post Group of Companies, is a leading provider of high
value-add supply chain solutions to the Canadian marketplace. Through its operating entities SCI
Logistics, Progistix, and First Team Transport, the SCI Group offers business-to-consumer,
business-to-business and field service logistics solutions to organizations in the health care,
retail, utilities, high-tech and manufacturing sectors.
About 3SO
Formally launched on Sept. 25, 2008, 3SO is a not-for-profit, non-share capital corporation
formed voluntarily by Brockville General Hospital, Kingston General Hospital, Hotel Dieu
Hospital, Perth Smiths Falls District Hospital, Providence Care and Quinte Health Care.
3SO's mission is to reduce total supply chain costs, for southeastern Ontario healthcare, through
innovative, leading practices and systems that enable customers to direct savings into patient
care.