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Category Archives: Healthcare Supply Chain

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SCI Expands Healthcare Footprint in Western Canada

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Subscription Commerce Platform Provider OceanX Partners with SCI

SCI to deliver direct-to-consumer and business-to-business supply chain solutions

TORONTO, Feb. 27, 2019 /CNW/ – OceanX LLC, a recurring revenue and subscription commerce platform company, has partnered with SCI (, a leading Canadian 3PL logistics company, for direct-to-consumer and business-to-business supply chain solutions.

Based on a model that cultivates long-term customer relationships with a focus on lifetime value, the recurring revenue and subscription industry has grown more than 100 percent each year in the past five years. OceanX supports tens of thousands of customized orders a day for prestigious direct-to-consumer brands across North America. They have chosen to partner with SCI to support their clients’ expansion into new Canadian channels, including new brand launches and an expanded retail presence.

SCI is proud to partner with OceanX as it embarks on offering its fully flexible, customized recurring revenue subscription platform to support its client’s Canadian customers.  The new, completely automated kit-to-order solution will be located at the healthcare campus in SCI’s Mississauga location that already services a number of prominent healthcare clients.

“SCI will implement a highly efficient solution for us that will allow our clients to customize every individual order to the needs of the consumer.  This mirrors our robust US operation and will set us up for a greater success in 2019 and beyond.” said, Tony Arteaga, Senior Vice President of Strategy at OceanX.

SCI’s healthcare group will provide a brand new warehouse management and automation IT platform and a high throughput packaging line that will allow for same day shipping, including services such as custom kit development, labeling, marketing inserts, free samples, gifts, and tissue wrapping.

“SCI has a wealth of experience within the highly-regulated Healthcare sector including pharmaceuticals, natural health and medical devices, and we can now apply this expertize to the healthcare ecommerce and recurring revenue subscription industry,” said Roger Sharpe, Healthcare Business Development at SCI.

“We’re excited about this significant new partnership with OceanX,” says Peter Tostevin, Vice President Healthcare at SCI. “As part of our strategy to deliver healthcare to the home, we continue to invest in automation technologies to support the fast growing, unique consumer health subscription market.”

About SCI
SCI is one of Canada’s leading providers of supply chain solutions that go beyond traditional logistics services. SCI’s tagline “We’ll make you even better” is a commitment today from a business that’s leading clients into tomorrow.

Trusted by clients in the retail, e-commerce, technology, and healthcare sectors, SCI operates the most extensive national distribution and transportation network in Canada, consisting of 30 distribution centres coast to coast along with over 40 critical parts stocking locations and specialized white glove shipping hubs.

SCI shares the learnings from the sectors they operate in, providing the audience with information to guide their supply chain to success through blog posts, case studies and white papers.

About OceanX, LLC
OceanX helps brands launch, grown and scale recurring revenue retail programs that seamlessly combines e-commerce, order management, personalized fulfillment, customer care and business intelligence. The platform is optimized to generate recurring revenue and cultivate lifelong relationships with customers. Under the direction of Georg Richter, an accomplished direct-to-consumer and recurring revenue subscription industry veteran, OceanX, a spin-off of Guthy-Renker, is a game-changer in the direct-to-consumer subscription retail space. Learn more at

SCI || Natasha Wookey | (647) 237-4972 |; OceanX | | Jeff Miller | 310-774-4088 |

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New Healthcare Clients Drive SCI Growth

SCI Launches New Healthcare Facility in Mississauga

TORONTO, Feb. 5, 2019 – SCI (, a leading Canadian 3PL logistics company, has announced the launch of its new healthcare-dedicated facility in Mississauga, Ontario, Canada.

The 150,000-ft2 fully-licensed distribution centre (DC) represents SCI’s latest investment in healthcare logistics aimed at helping over-the-counter healthcare product and medical device companies manage their omni-channel supply chains within Canada. This latest facility increases SCI’s overall footprint to over 4 million square feet across Canada with a total of 30 distribution centres.

The multi-client DC is equipped with state-of-the-art technology for storing temperature-sensitive healthcare products such as drugs and natural health products; as well as offering a high throughput automated order-to-kit operation designed for the OTC and Consumer Packaged Goods industries. In addition, SCI can provide distribution services, warehouse management, transportation management and late-stage customization solutions such as labeling, product kitting and configuration, and repackaging.

This new distribution centre will be managed under SCI’s Quality Management System, which operates rigid process controls through all areas of the supply chain. This ensures healthcare clients will effectively comply with Canadian regulatory standards and safety protocols. Sensitivity and security of the customer product and reputation are paramount to SCI.

“This announcement demonstrates SCI’s continued investment in the integrated healthcare network. Our goal is to help manufacturers lower costs, streamline inventory, and meet increasing demands posed by ecommerce, trading partners and Health Canada” says Peter Tostevin, Vice President Healthcare, SCI. “This investment comes on the heels of a year of significant growth in our healthcare logistics division.”

“We’re thrilled to be opening our brand new Healthcare facility”, says Chris Galindo, President and CEO of the SCI Group. “This is a continuation of our strategy to invest in leading technology, resources and infrastructure to support client growth.” As more healthcare companies diversify into new markets, we can play a significant role in the evolution of this important sector.

About SCI
SCI is one of Canada’s leading providers of supply chain solutions that go beyond traditional logistics services. SCI’s tagline “We’ll make you even better” is a commitment today from a business that’s leading clients into tomorrow.

Trusted by clients in the retail, e-commerce, technology, and healthcare sectors, SCI operates the most extensive national distribution and transportation network in Canada, consisting of 30 distribution centres coast to coast along with over 40 critical parts stocking locations and specialized white glove shipping hubs.

SCI shares the learnings from the sectors they operate in, providing the audience with information to guide their supply chain to success through blog posts, case studies and white papers.

For further information, please contact

SCI | | Natasha Wookey | (647) 237-4972 |

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Subscription Services Within the Healthcare Industry

The subscription model for E-Commerce has made its way into the main stream of online consumer purchasing, offering convenience and consistency of service. Considering the way in which healthcare products such as skin care, prescriptions, and cosmetics are consumed, subscription services are becoming increasingly popular among healthcare consumers.  

Subscription Based Services are the New Trend in E-Commerce

In just a few short years, the number of visits to subscription websites has exploded, from less than 1 million in 2013, to an astounding estimate of 40 million in 2017*. This boom is leading companies to consider how to incorporate subscription-based services into their future business plans.

Subscription website visists*

Who are the average subscription consumers?

Subscription Target Market *

  • Is between 25-34 years old
  • Has an average household income of USD $78k
  • Are nearly 60% are women with young children
  • Exhibit behaviour that demonstrates a high level of comfort with personalized e-commerce shopping experiences

These statistics demonstrate the sheer scale of the subscription services market.*

Of course, the future will undoubtedly see these trends with subscriptions evolve even further, going beyond consumer-packaged goods and making their way in to healthcare services, too.

How Subscription Services are Disrupting the Healthcare Industry

Consumer purchase behaviour has been evolving substantially over recent years due to new technologies, digital health services and disrupters like Amazon healthcare that are revolutionizing the Healthcare industry. Speed, convenience, and transparency are all much more prominent in the decision-making process for many consumers, which helps to explain the booming popularity of subscription services.

For businesses competing in the healthcare sector, this change in behaviour is having serious ramifications on how they get their products and services to the consumer. With fewer in-store visits, healthcare companies and services have to reconsider their business model.

Health coaching, primary care services, over-the-counter and prescription drug fulfilment are just a few of the many ways that subscriptions are being leveraged by forward-thinking brands in the healthcare industry.

Furthermore, automation technologies are accelerating these trends and enabling greater efficiencies to deliver even more convenience for consumers. However, for subscription services to be successful in a healthcare environment, consistency and reliability in fulfilment are critical. Companies utilizing a subscription services model must have solid fulfilment processes and adequate logistics resources, ideally with significant kitting capabilities and warehousing facilities that can accommodate the required specifications for medical supplies.

Licensing and regulatory compliance are also extremely important factors that must be considered by companies in the healthcare industry. Many healthcare products are covered by strict regulations on how they must be packed and shipped direct-to-consumer, and failure to comply can pose substantial risk especially for pharmaceutical companies.

Beauty boxes, prescription fulfilment, and health coaching leading the way.

Share of Subscription boxes infographic*

Currently, beauty products are dominating the subscription box model. Cosmetics, skin care, hair care, and general hygiene are well suited to the subscription model due to their consumable nature, the need for regular replenishment, and the consumer’s value of the convenience that subscriptions offer.

Health coaching, health care services, and preventive healthcare products, are also growing in popularity with the subscription model, as these products and services are used often and at regular intervals. Furthermore, some hospitals and healthcare facilities are adopting subscription models for equipment by allowing them to regularly update to new devices and technologies through smaller incremental investments.

What does it take to launch a subscription model in Canada?

For healthcare companies that are interested in adopting subscription fulfillment services within Canada, it’s essential to have realistic expectations on what is required and the timelines that can be anticipated as part of the setup and startup process.

For starters, having a sensible timeline for implementation will help ensure that the necessary resources are in place, training can be conducted, and systems within the distribution centre are able to handle the subscription fulfillment each month/week.  Another common issue we see when implementing a new subscription model is with the IT systems as the shift to automatic replenishment may cause compatibility problems within your current protocols.  In order to ensure a successful launch, a proper test period or pilot of the subscription model will help your company work out all the kinks before you launch to the public.  With that being said once your company does launch a subscription based service, shipping policies, delivery timelines, and fee structures need to be clearly communicated to meet and manage customer expectations.

During the early stages of a subscription services startup, it’s likely that only one distribution centre (DC) will be needed to manage the volume, but this is highly dependent on factors such as how closely linked the DC is with the planning of upcoming promotions and marketing efforts. If these two elements are not in sync, serious problems can arise, especially during peak season when shipment volumes and customer expectations are both higher than usual.

If you are starting your healthcare operation within Canada, Health Canada’s regulations will need to be taken into consideration within the implementation plan. Schedules can quickly be thrown off in the event that compliance issues arise or regulations change. If you are looking for help managing regulatory compliance, click here to read about our healthcare technical solutions.

A 3PL should always be ahead of the changes and trends in subscription & membership-based business models.

The healthcare companies that will achieve the greatest success with subscription models will be the ones that have partnered with the right 3PL provider.  As an established expert in e-commerce fulfilment, SCI’s facilities, personnel, and technology are able to ensure that subscription services function perfectly at all times, even during the highest points of your peak seasons. SCI warehousing and transportation resources are capable of effectively managing any type of healthcare product, from consumer-packaged goods to advanced technology and equipment.

SCI helps deliver a consistent and reliable subscription experience for healthcare consumers. By implementing systems and technology throughout the supply chain that track the entire process from warehouse to consumer, visibility is gained in to the effectiveness of fulfilment operations. This visibility provides insights and helps guide the progression of the subscription services model for greater impact over time. SCI also has all the proper licensing to ensure that your products will meet the regulatory standard required by Health Canada.

SCI has helped many organizations with subscription services, including warehousing & distribution, fulfillment, automation and other supply chain services, all customized specifically for the healthcare industry.  Contact our healthcare team today to see how we can help your organization.

*Uncovering the e-commerce subscription box opportunity in the U.S – Canada Post 2018

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Choosing a 3PL Isn’t Just About Cost Anymore

In order to stay competitive, businesses need to always be looking for opportunities to make better use of limited resources, including personnel, equipment, facilities, and capital. For this reason, many companies wisely turn to third-party logistics (3PL) partners in order to achieve greater levels of efficiency, better customer service, and lower costs.

However, it’s important to know that not all 3PL logistics providers are created equal. Supply chain companies have different areas of expertise, and while  certain companies may come in at a lower overall cost, the level of service and capabilities are often vastly different. A great logistics partner will be able to support a long term competitive advantage for the right price.

Here are some of the key factors to look at when considering different 3PL providers.

Resource Availability

A 3PL partner may have a lower cost due to the smaller pool of resources available to them. Fewer locations, older technology, smaller fleets, and other factors can all play a big role in your company’s ability to meet the demands of an aggressive market.

Look at the network of locations that your 3PL has in place and weigh them against your long-term expansion goals.  For example, if you’re planning on growing on a national level, you want to ensure that your 3PL partner can handle the demands in the areas you are focusing on. Keep in mind that the resources you need today aren’t always going to be the same resources you need in the future.

In addition, top-tier 3PL providers will have strategically-located facilities at the ports of entry to enable smooth import and export of goods across international borders. When shipping products to or from overseas, having the resources in place to handle the necessary processes can significantly reduce the risk of any delays associated with border crossing.


Knowledge & Experience

Another consideration is the level of expertise and industry knowledge that a 3PL can offer you in your specific industry. You’re going to want a team of experts that require very little vendor management with a wide range of hands-on expertise on how to make your supply chain work faster, leaner, and smarter. This knowledge can help keep you within your operating budget and lead to not only meeting your growth goals but exceeding them.

Experienced 3PL companies will have all the appropriate licensing in place and can help make sure that any regulatory concerns related to your products are handled correctly. Their experience also provides assurance that your products will be handled with the proper care, and that they are stored and transported in the correct conditions to reduce the risk of damage or loss along the various stages of the supply chain. When considering different 3PL providers, it can be insightful to take a look at the other businesses they work with, as well as the growth history and evolution of their company. If they are true 3PL experts, they’ll have the heritage to back it up and the client list to prove it. When you’re investing extensive capital in to your supply chain, you want the assurance that you’re making the right choices.

Support When You Need It

While we all expect operations to run smoothly in the supply chain, the reality is that there will always be occasional issues, some minor, some major. The difference between a minor issue and a disaster will depend on the support systems you have in place. This can be one of the biggest differences between 3PL providers, and it can have big repercussions for your business.

Take the time to thoroughly evaluate the 3PL provider’s support systems and customer service capabilities. You will quickly be able to identify which providers are delivering greater value through added service and support.  Getting your operations back on track quickly and efficiently is critical to delivering on customer expectations, and having the right support systems makes all the difference.

Leverage Technology

Of course, it’s not just the physical resources and personnel that make a good 3PLpartner. You also need one who can deliver the best insights that are derived from accurate data in order to guide you to better strategies for growth and success. Technology plays a big role here, and the implementation of systems to gather and transmit critical data can have a huge impact on your ability to adjust to changing market conditions and make better decisions based on your business’s analytics.

Automation of processes is another way that 3PL providers can deliver greater value and help your company boost efficiencies throughout your supply chain. Whether it is in inventory management, order fulfilment, demand planning or materials handling, automation can lead to cost reduction and improve quality control. Look for a 3PL partner that has an expertise in the right automation for your supply chain where it where it gives you the most long term gains.

Take a Step Back and See the Bigger Picture

As you can see, there are many different ways that third-party logistics providers are able to differentiate themselves. This is why it’s important to take a step back when choosing a partner and see a holistic view of what they are able to offer that goes far beyond the simple financial cost. By having a more complete picture of the benefits they can bring to the partnership, you’ll be in a better position to make the right choice for the future of your business.

If you’re looking for a leading 3PL with national coverage, leading edge technology, customized solutions and dedicated customer care, then contact the SCI team today.

Our logistics experts will answer all of your questions and work with you to achieve your goals of a smarter, more efficient supply chain that is ready for the challenges of tomorrow.

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