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Ontario Association of Children’s Aid Societies – case study

For more than 100 years, the Ontario Association of Children’s Aid Societies (OACAS) has been enhancing and promoting the welfare and wellbeing of children, youth, and families in Ontario.

When the Government of Ontario declared a pandemic emergency on March 17, 2020, Lyndon Smith, the Director of OACAS Shared Services knew things were going to change very quickly.

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CleanSlate UV – case study

CleanSlate UV was founded in 2014 with a mission to prevent the spread of germs on mobile devices. The CleanSlate UV Sanitizer is a hospital-grade device that uses medical-grade UV light to sanitize mobile devices in just 20 seconds. Today, this simple and effective product is deployed in over 800 healthcare, retail, hospitality and educational facilities around the world, and has successfully cleaned more than 40-million devices. The company is headquartered in Toronto, ON with offices in Buffalo, NY and partners worldwide.

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SCI’s Partner is Pioneering Infant Nutrition Initiative

SCI’s Partner is Pioneering Infant Nutrition Initiative

SCI delivers new Canadian D2C Infant Nutrition program with RB Health (Canada)

TORONTO (ONTARIO), November 19, 2018 – SCI www.sci.ca, a leading Canadian 3PL logistics company, has partnered with RB Health (Canada), the leader in the North American Infant Nutrition, on a unique Canadian program for their Enfamil family of brands (https://www.enfamil.ca).

SCI will provide direct-to-consumer (D2C) supply chain services for RB Health (Canada) as it launches Enfamil into new Canadian channels.  This unique D2C offering will allow parents to have peace of mind by ordering all their infant nutrition products direct from the manufacturer.  Additionally, Mead Johnson will offer its customers special product promotions and additional support resources to help families navigate the early years of childhood.  The pioneering D2C initiative, underscores Enfamil’s leadership position in the Infant Nutrition market.

RB Health (Canada) partnered with SCI to provide fulfillment services for the D2C platform, as a result of their extensive healthcare ecommerce experience and direct linkage to the largest delivery network in the country.  SCI provides national fulfillment out of its healthcare campus in Mississauga, with the ability to support RB Health (Canada)’s footprint across Canada.  RB Health (Canada) will also be able to take advantage of SCI’s unique product kitting and value-added services.

enfamil

“We are thrilled to support the strategic move of RB Health (Canada) into the D2C space.  We see this as a key focus area for all fast moving consumer package goods companies, and RB is a first mover in the space” says Peter Tostevin, Vice President Healthcare, SCI. “SCI has successfully launched the RB Health (Canada) D2C program, and we are looking to rapidly expand in the near future.”

 About RB Health (Canada)

Reckitt Benckiser acquired the Mead Johnson Enfamil family of brands in January 2017, including Enfamil A+, Gentelease and Nutramigen + with LGG with a strong focus on the health and development of infants and children. We are the only global company focused primarily on Infant and Child nutrition. That singular devotion has made our flagship “Enfa” line the leading infant nutrition brand in the world. Today, RB Health (Canada) develops and markets safe, high quality, innovative products that help meet the nutritional needs of infants and children. With more than 70 products in over 50 countries, RB Health (Canada) products are trusted by millions of parents and healthcare professionals around the world.

About SCI

SCI is one of Canada’s leading providers of supply chain solutions that go beyond traditional logistics services. SCI’s motto “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 27 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 | www.sci.ca | Natasha Wookey | (647) 237-4972 | natasha.wookey@sci.ca

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Case Study: Supply Chain Solution for Automated Cash Handling Equipment

SCI’s client is popularly recognized for secure transportation services and is best known for their cash-in-transit services, security services and high-value storage (vaults) for banks, credit unions, mints, retailers, and governments, to name a few.

One of the client’s technology solutions helps retailers transform their cash handling from a slow, manual process into an automated and secure process. This technology allows customers to put the money straight into a safe that counts it directly. The automated solution eliminates cash-counting discrepancies, reduces manual labour costs, decreases internal fraud and saves the retailer time so they can focus on what really matters – their customer.

The Challenge

The client’s challenge was to optimize the complex life cycle process of warehousing, initial configuration, delivery, installation, and post-sales logistics for their technology products in order to deliver a better experience to their customers. Initially, the client executed the end-to-end technical logistics in-house, but with business continuously growing and many new services branching out, the lack of resources and specialized expertise became apparent. Keeping the technology supply chain in-sourced would limit the efficiencies. The clients started their search to find a supply chain company that, in tight collaboration with the secure logistics company, would create an optimal solution to manage their technology product life cycle.

ATM Supply Chain

The Discovery

SCI is a 3PL providing end-to-end supply chain solutions that improve their clients’ business results and customer satisfaction. The client discovered that SCI’s technical expertise covered all phases of the full technology life-cycle, with services including configuration, staging, swap, installation, network connection, refurbishing, and repair. SCI also stood out among other 3PLs because of the expansive national technician and transportation network and a strong background in supply chain and technical services for ATMs, self-service kiosks, and similar products. SCI’s experience and resources such as technician labs, facility infrastructure, transportation capabilities, and project management office (PMO) were what the company needed for gaining cost efficiency from outsourcing, as well as improving the quality of service and, ultimately, making their customers’ experience even better.

The Solution

The company turned to SCI to handle all the “heavy lifting” of their technology logistics – warehousing, technical work, and transportation. SCI applied the wide breadth of their existing capabilities to tailor a solution that met the client’s needs:ATM 3PL

  • A network of installation crews with experience for the type of products similar to the client’s
  • Field service technicians to perform initial configuration
  • Warehousing facilities directly attached to technical labs and central transportation hubs
  • Project management staff to help coordinate installations and removals, and track overall success

To implement the new solution, the 3PL and the client together developed a transition plan based on the end customer demand. The client provided a roll-out plan to allow for configuration and installation planning. SCI and the client jointly performed initial configurations to test the processes, and the client attended initial installations with SCI’s riggers. In addition, to keep the company’s technical processes consistent, SCI closely collaborated with the client’s own technical experts in order to attain complete alignment.

The Results

Outsourcing the technology product supply chain to SCI resulted in significant cost savings for the client, as opposed to them executing these services in-house. SCI’s highly adaptable team was able to create and deliver the full-service end-to-end solution, resulting in decreased travel and lead time, and improved end-user experience. In some cases, SCI’s solution reduced costs by over 200% per site installation.  The solution also reduced the pressure on client’s internal resources, leveraging SCI’s ability to pre-stage products and house parts at SCI’s facility.

As a result of partnering with SCI, the company was able to divert their energy away from the logistics and technical side to focus on the core of their growing business.

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Maximizing Supply Chain Value for South-Eastern Ontario Hospitals: 3SO and SCI

Summary

The case study was nominated for the 2015 CSCMP Supply Chain Innovation AwardTM.

SCI’s unique supply chain solution represents a slight departure from other models in the third party healthcare logistics market. It enables 3SO to decrease operating costs and free up resources for the member hospitals. 3SO manages the procurement of the surgical and medical products and SCI takes ownership of the majority of the stock inventory and manages all fulfillment activities to and from the central regional warehouse 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 for improved regional pricing for member’s products.

Client

Shared Support Services South-eastern Ontario (3SO) is a not-for-profit, non-share-capital, shared service organization created primarily to provide supply chain services to member hospitals in South-eastern Ontario.  The objectives of 3SO are to improve service levels and maximize supply chain efficiencies, resulting in savings for member hospitals.

3SO was formed voluntarily in 2008 by six founding member hospitals: Brockville General Hospital, Kingston General Hospital, Perth and Smiths Falls District Hospital, Providence Care, Quinte Healthcare Corporation, Hotel Dieu Hospital, Lennox and Addington County General Hospital  (Joined in 2010).

3SO provides the member hospitals with procurement, warehousing and distribution services, one account payable technology platform, and support systems (e.g. ERS and EFT).

Challenge

The member hospitals were looking for cost efficiencies in multiple support service areas. Supply chain was the most promising regional opportunity for achieving significant savings – at the same time it was a complex and challenging one. To achieve cost efficiencies an outsourced regional warehouse and logistics provider (3PL) was mandated in the business case for stock inventory.

Outsourcing the central warehouse and distribution to a 3PL would result in regional efficiencies (e.g. reducing the storage space, reducing inventory at hospitals and freeing up the space for other hospitals’ activities).

Journey

3SO collaborated with another shared support services organization for selecting and evaluating a 3PL provider. The two organizations produced a joint RFP which combined the service volumes and requirements, and capturing synergies in more than one region. Teaming up with another Shared Services Organization (SSO) to create a mutual document demonstrated a high level of collaboration in an effort to effectively approach the market and reduce public sectors dollars spent on the RFP process.

The RFP was publically issued in 2009.  3SO was not satisfied with limited 3PL options in the healthcare market. To stimulate competitive bid environment, multiple outsourcing models were considered in the RFP procession such as: 1) 3PL-owned inventory model and 2) 3SO-owned inventory model.

The collaboration with another SSO allowed for pulling data from larger number of hospitals, and for leveraging the experience of an SSO that had been historically exposed to logistics outsourcing. As well, the two organizations involved a project manager in to the outsourcing project in order to better understand what exactly 3PLs need to know in terms of data to develop the best solution.

Discovery

3SO was looking for a 3PL provider who was already using leading supply chain technology and expertise for its other clients, so 3SO could leverage existing capabilities and infrastructure already in place. The RFP process produced five compliant bids. The final decision was made in April 2009. The SSO that participated with 3SO in the RFP chose not to change their incumbent 3PL service provider. 3SO selected SCI as its 3PL provider.

SCI is the leading Canadian-based third party logistics provider (3PL) offering customer focused supply chain solutions in Canada since 1995. The company operates an extensive national distribution infrastructure, coupled with the most comprehensive parcel delivery and transportation network in the country, currently serviced by over 1350 team members. SCI provides supply chain solutions to customers in the Retail, E-Commerce, Healthcare, Technology, and Financial sectors.

Some of primary reasons for selecting SCI were:  full price transparency, product and vendor independence, commitment to the warehouse location in the Southeastern Ontario region, significant experience with SAP integration, full cross-docking support services, flexibility for potential onboarding more products in the future, as well as purchase and decomposition of one of the existing hospital material management carousels which created a one-time revenue stream for 3SO and a member hospital.

In 2009, Lyndon Smith, General Manager of 3SO commented: “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”. He also stated: “Another key factor in our decision to use SCI 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 enabled us to achieve additional efficiencies during implementation.”

Solution

SCI offered a unique solution which went beyond managing the warehouse “4 walls” and represented a slight departure from other models in the third party healthcare logistics market. 3SO manages the procurement of the surgical and medical products and SCI takes ownership of the majority of the stock inventory and manages all fulfillment activities to and from the central regional warehouse 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 for improved regional pricing for member’s products.

Lyndon Smith emphasizes the openness of the two parties to considering new solutions reforming the supply chain: “Since 3SO was a new healthcare shared service organization and SCI, at the time, was just entering the Ontario healthcare supply chain industry, the situation had its advantages. Both of our organizations were not caught up in a lot of the “this is the way we have always done it in this industry” thinking.”

After SCI purchases products from vendors under 3SO negotiated vendor contracts, the products are stored at the SCI Logistics’ warehouses and are re-sold at 3SO’s negotiated price to the member hospitals.

SCI manages transportation from the warehouse to hospitals’ receiving docks. The 3PL charges a line item charge for each item picked and packed.

Implementation

Close engagement of 3SO with its chosen 3PL partner SCI was at the base of the successful implementation of the outsourced logistics project. The organization was committed to developing effective working relationships with the logistics service provider, and supported the outsourcing model implementation through change management within 3SO.To ensure smooth implementation, 3SO involved a project manager.

3SO and SCI jointly developed, implemented, and maintained service standards consistent with leading industry standards and practices including: inbound receiving and put away, order processing, returns turnaround and put away, physical and cycle count accuracy. 3SO and SCI Logistics work together on managing vendors’ performance in terms of replenishment.

SCI’s staff and senior leaders brought to the table the hands-on approach and continuous improvement practice. Ongoing, joint 3SO and SCI Logistics meetings on continuous improvement continue to successfully resolve issues and highlight improvement opportunities on both sides (e.g. expiry management, lead time management). SCI currently has three Greenbelt CI experts in the Kingston facility. Corporately-sponsored LEAN and CI programs result in a number of initiatives in purchasing, receiving, facility management processes, and other areas of the business.  At the SCI Kingston facility, this past year, every employee has brought forward at least one continuous improvement idea to benefit 3SO and its member hospitals.

3SO as well benefits from SCI’s significant ongoing investment in material handling and IT equipment (Fastpick upgrade, RF guns, mobile printers, etc.).

Results

SCI’s solution has enabled 3SO decrease overall regional supply chain operating costs to free up resources for the member hospitals to use for other hospital activities.

The vendors ship their stock products to one location vs. 15 sites across 7 hospitals. Due to reducing the manufacturers’ cost to ship their products, the combined logistics and product prices for stock medical surgical products carried by SCI for 3SO were lowered for numerous products.

SCI manages over 3,000 products that are delivered to approximately 400 storage locations that 3SO is managing in the South-eastern Ontario LHIN region. Stock fill rate is 99% across all 7 member hospitals (compared to the industry’s target of 98%).

In 2009, inventory turns targets were 12 turns per year, and now are averaging 17 turns a year.

The service levels are continuing to be met.

“We are proud that our service is contributing to making hospitals more efficient. We believe we have a true strategic collaborative partnership with 3SO,” – says John Ferguson, the President and CEO of SCI. We know that people at 3SO would say that they have never experienced a similar level of integration of efforts in the healthcare supply chain.” SCI demonstrated a full commitment to meet 3SO’s needs through listening, learning, and taking action.

Lessons Learned

The following actions are crucial for a successful 3PL partnership:

  • Providing and investing in the right resources and talent for implementation and  to carry on the project
  • When evaluating the proposals, potential customers must look at the overall value of the solution and not strictly pricing
  • “Living” the experience of a true outsourcing partnership, and not a transactional relationship
  • Providing and committing to change management and project management resources for all phases of the implementation
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Supply Chain Solution for Wireless Handset Manufacturer

Challenge

A global manufacturer of wireless handsets and accessories needed to improve service and reduce costs.

Journey

Historically, its Canadian warehouse operations were split between direct-to-client (D2C) shipments for Canada’s largest wireless service provider and bulk distribution to other national wireless providers. The operations also handled D2C orders from its Canadian e-commerce business. Recognizing the need to improve efficiency and better manage costs, the client determined that instead of operating its own Canadian distribution centre, it would outsource warehousing and distribution operations. SCI was selected as the supplier of choice to serve the Canadian market.

Solution

SCI engineered a solution integrating a full suite of supply chain services that delivered full visibility and life cycle product tracking of every handset at every stage of the supply chain. The process of creating the solution began with our Solutions Team and the client working together to determine the client’s key requirements including the complete transfer and outsourcing of the client’s GTA operations to the SCI’s Mississauga facility.

One of the challenges was integrating the solution with the wireless service provider, including adhering to its vendor managed inventory (VMI) requirements. For the VMI program, our client maintains ownership of inventory and fulfills orders passed to it by the service provider, billing them once shipment confirmation is received. VMI programs like this require extensive data sharing and reporting between all parties, which means systems need to be seamless, regardless of who owns them. Our Solutions Team quickly assessed the operating and technology environments of each company and built several interfaces between the manufacturer and the service provider systems to support all supply chain activities, including the VMI program.

The remainder of the solution involved designing and implementing freight management services and assembly and kitting services. We also created cross dock processes for moving product to other large client warehouses in the Canadian marketplace. And finally, we supported our client’s e-commerce offering in Canada, distributing product directly to consumers who ordered through the company’s website.

The key features of the solution include:

  • Robust and scalable WMS/TMS
  • Complete interface with the client’s host SAP system
  • Real-time track and trace of inventory and order status via the web
  • Transportation management system that includes managing carrier claims on the client’s behalf
  • Direct access to reports

Results

Proof of the effectiveness of the solution is in the numbers:

  • Achieved inventory accuracy levels of 99.99%.
  • On-time shipping of orders received before 4 p.m. exceeded 99.95%.
  • Dock-to-stock in 4 hours with ASN receipt.
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