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2019 SCI Leadership Meeting: Back to the Future

Every year SCI invites their leaders to a Leadership Meeting where we learn, grow and celebrate together. This year, the SCI Leadership Meeting was held on March 26th in Mississauga.

This year’s theme was Back to the Future. From interactive team building to client spotlights, from director panels to recognition awards, the day looked back at the great successes SCI has accomplished together over the past year and set the team up for continued growth in 2019 and beyond.

Over the course of three days, our leaders had the opportunity to network with their peers from across the country, meet new people, hear directly from clients, and recognize all of the Continuous Improvement and Safety award winners throughout the company.

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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 (www.sci.ca), 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 https://oceanx.com/.

SCI | https://www.sci.ca| Natasha Wookey | (647) 237-4972 | natasha.wookey@sci.ca; OceanX | www.oceanx.com | Jeff Miller | 310-774-4088 | jeff.miller@oceanx.com

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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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Increased Competition for Consumer Health Dollars: Pharma Companies vs. CPG Industry

With the value of the global healthcare marketplace projected to exceed $8.5 trillion by the year 2020, it should come as no surprise that there is increased competition for consumer health dollars. The barriers that previously existed between sectors of the healthcare industry that separated consumer-packaged goods from prescription and business-to-business entities have begun to fall away, opening up new markets for companies on all sides to grab for their own share.

These trends have had a significant impact not just on healthcare product logistics, but on how the healthcare industry operates, and as such have also had a tremendous influence on the expectations of consumers around the world.

The way that consumers expect products to become available, and the ease with which they expect to obtain them, is changing drastically. They demand fewer barriers and easier access to a wide range of healthcare products and are taking a much more hands-on approach to the management of their own health.

Companies that recognize these trends and invest accordingly will inevitably be better situated to achieve success in a very competitive landscape, but why are these changes occurring at all? What’s been happening in the world of consumer-packaged goods and pharmaceuticals that is driving this trend? The answer is multi-faceted and is being driven as much by the consumers themselves as it is by the companies that are vying for their dollars. Let’s take a look at a few of the factors that are behind these changes.

Greater Range of Products Transitioning to OTC

One of the main reasons for these shifts in the healthcare industry is simply the natural evolution of products as they progress through their lifecycles. Many products that are currently available over-the-counter (OTC) at pharmacies and healthcare retailers across the country were not always so readily available to the public. Most of them began their existence as heavily-regulated prescription products and had a defined process that had to be followed in order for consumers to obtain them.

Of course, as many of these products matured and gained a larger base of customers who were using them, they gradually became less restricted and accessibility became easier. This in turn drove greater demand, which circled back around and resulted in even greater access. Eventually, many of these products reached a point where they were common enough, safe enough, and popular enough to justify an OTC method of reaching customers.

Offering more and more products to consumers over-the-counter has many advantages for customers and manufacturers alike. The ease of access allows a wider range of customers to access the products and tends to have the effect of lowering costs as volumes increase. In a nutshell, customers benefit from easier access and lower costs, while manufacturers benefit from a bigger marketplace and increased efficiencies.

What is Driving Consumers to Pursue Self-Management for Healthcare?

The reasons why consumers are so eager to see a greater range of prescription products move to over-the-counter availability are numerous. One factor that has been having an effect on patient behaviour in Canada is the increasing shortage of general practitioners and family doctors.

Although Canada is producing a record-number of medical school graduates, a shrinking percentage of these doctors are willing to invest in their own practice or take over from other doctors who are retiring. Most new doctors are preferring to work exclusively through hospitals or take on specialty fields, both of which have greater immediate financial benefits for them. Coupled with an archaic billing system that hinders physicians from efficiently getting reimbursed for services offered to their patients, it’s not hard to see why the number of family practices in Canada is decreasing.

This all results in greater difficulty for Canadians to access their family physician to obtain simple prescriptions, which in turn increases their desire to self-manage their own healthcare wherever possible. When combined with the steady increase in OTC products, these frustrations drive more and more Canadians to demand easier access to these types of products.

How are Healthcare Product Manufacturers Adapting?

These challenges present quite the conundrum for manufacturers on both sides of the healthcare spectrum. On the one hand, pharmaceutical companies face a fiercely competitive consumer healthcare market, saturated by the savvy marketers of consumer-packaged goods. On the other hand, consumer-packaged goods manufacturers are now dealing with additional competition from products that were previously limited only to prescriptions and often have substantially more effectiveness than competing products, especially when compared to standard off-the-shelf medications. This situation results in pharma companies and consumer-packaged goods providers to search for additional efficiencies in their operations and methods to market, often leading them to evaluate their supply chains for new opportunities.

Pharmaceutical companies are altering their approach to OTC products in order to minimize the risks that are associated with prescription-only businesses. To this end, many are seeking strategic alignment with other companies in the OTC business, or are engaging in acquisitions in order to expand their reach. This approach has resulted in substantial growth for pharmaceutical manufacturers in the consumer healthcare market.

Consumer-packaged goods businesses are also doubling down on their efforts to acquire greater share of the consumer healthcare market by leveraging their wealth of data and powerful marketing machines to compete. These companies are also seeking strategic partnerships and acquisitions in order to broaden their reach and strengthen their share of the consumer healthcare market. Appealing to the upscale consumer with higher-end products and aggressive marketing campaigns, these actions have resulted in a surge of demand that consumer-packaged goods companies are more than willing to supply.

Gaining Advantage Through Logistics

One of the keys to success in the consumer healthcare market is an efficient and well-honed healthcare supply chain. Every step in the process from warehousing, material handling, packaging, fulfilment, transportation, and even returns must be carefully examined in order to determine where investments should be made.

Consumer-packaged goods and pharma companies alike can benefit from the resources and capabilities offered by national and global third-party logistics (3PL) providers. With coast-to-coast distribution, transportation, and warehousing, 3PL companies are able to deliver to all major urban centers quickly and consistently. 3PL businesses are also able to assist with tasks such as order fulfilment, inventory management, and even customer service.

Conclusion

In the coming years, these trends will only become more entrenched in the healthcare industry. More and more consumer-packaged goods companies will find themselves competing for customers against major pharmaceutical companies from around the globe.

Conversely, pharma companies are going to be entering an increasingly challenging marketplace, as competitors gear up their marketing efforts to maintain and grow their presence and market share. To succeed, companies on both sides will need to continually improve their supply chains in order to achieve greater agility and flexibility.

SCI’s 3PL solutions can be the advantage your company needs to take your logistics operations to the next level. Our coast-to-coast network is ready to serve your healthcare business and give you a competitive edge in the Canadian market.

Contact SCI today to arrange a no-obligation consultation.

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Health Care Embraces E-commerce Trends (article published in Modern Material Handling)

Is e-commerce a new trend in the healthcare space? Should healthcare suppliers and retailers embrace e-commerce? SCI’s director of health care strategy and sales, Roger Sharpe was recently interviewed by Josh Bond of Modern Materials Handling for the article on the state of online healthcare.

As Amazon plans to move into the global healthcare market, other healthcare companies find themselves under even higher pressure to enter e-commerce. Besides, the patients and consumers are looking for speed and convenience, but the current model does not satisfy the needs of the end user.

How can a better distribution solution help them get ahead? To read the full article click here: https://www.mmh.com/article/health_care_embraces_e_commerce_trends

 

Related link: SCI White Glove MRI Move & Installation video

Contact SCI today if you want to start healthcare e-commerce distribution – consult our experts.

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The Right Time to Outsource to a 3PL

When do Companies Start Thinking About Outsourcing?

As all companies grow, they must continue to evolve their business processes in order to stay successful. For many, this means focusing on manufacturing efficiency, for others it means improving the customer experience, and others may need to invest heavily in product development. Each company faces a unique set of challenges that are determined by many factors:

  • Company size
  • Market conditions
  • Technology
  • Customer needs.  

Because of this, each company will also reach different goals and achieve different benefits through outsourcing their supply chain or distribution services to a 3PL.

Understanding how your company stands to benefit from outsourcing, as well as identifying which specific tasks or functions make the most sense to outsource, will determine whether now is the right time or not.

Let’s now take a quick look at the different benefits that companies can achieve through outsourcing to a 3PL.

Benefits of Outsourcing to a 3PL

Of the numerous benefits that companies aim to achieve through outsourcing to a 3PL, the most common is cost savings. Outsourcing can allow companies to significantly reduce many types of costs, including labour, materials, overhead, transportation, and more. The scale of these savings varies depending on many aspects of the business, but for many companies that engage internationally, the savings from outsourcing to a 3pPLcan have a big impact on the bottom line.

Other companies obtain benefits from the ability to refocus efforts and resources on core values and activities. This is done by shifting internal resources away from functions that can easily be outsourced, such as warehousing or transportation, and reinvesting these resources in areas of the business that can have a much more significant impact on customer experience, product development, and other aspects that directly drive the growth of the business.

Seasonal industries that see dramatic surges in business are able to achieve much greater flexibility in meeting the demands of these cycles by bringing in additional resources through outsourcing to help manage the peaks. Once the surges have subsided, the temporary additional resources can then be released until the next surge when they are needed again.

Key Signs It’s Time to Outsource to a 3PL

While each company will have a different set of circumstances that prompts them to consider outsourcing, there are many common factors that these companies will see as outsourcing becomes an increasingly viable option for them.

Maintaining profit margins is a challenge for any business, but even more critical for businesses in fiercely competitive markets, or products that have notoriously thin margins. A common sign that a company may benefit from outsourcing to a 3PL is the continual erosion of profit margins and increasing costs. For companies that have tight budgets, outsourcing could be the right way to manage profit margins, as supply chain processes and distribution, when done in-house, contribute to a large portion of the overhead.

In markets where the workforce is not as plentiful as the company requires, outsourcing may be the only way to acquire the talent needed to drive the company forward. If a company is struggling to attract talent from the local area, it may be time to consider expansion through outsourcing to a 3PL that has established relationships with employment agencies and a greater volume of talent available to draw from.

Another potential sign that outsourcing could be a good move is if overtime is increasing in your facility beyond what should reasonably be expected. Outsourcing could provide a fast and effective way to reduce the load without adding excessive overhead or additional labour costs.

While this is not an exhaustive list of the factors that cause companies to consider outsourcing to a 3PL, it should give you a general idea of the typical warning signs to look for.

What can be Outsourced to a 3PL?

One of the most common ways that companies choose to improve their supply chain or distribution efficiency, and one of the easiest for many companies to implement, is outsourcing a variety of logistics services and tasks to a third-party logistics provider (3PL).

Shipping, warehousing, order fulfilment, packaging, and return logistics are all functions that can be managed through outsourcing. In addition, since many third-party logistics providers have resources in locations across the country or even globally, they can open up new markets that may have previously been unattainable.  Leveraging the resources of a third-party logistics provider can be a major benefit to companies that are struggling to achieve growth.

Decision to Outsource to a 3PL

The decision to outsource is not one that should be taken lightly, but at the same time it should not be shunned or discounted. If your company recognizes one, or several, of the warning signs we described then it may very well be time to consider outsourcing. It’s best to look at the trends your company has been experiencing, both internally and externally, in order to determine if now is the right time to make a shift.

By looking internally at factors such as profit margins and worker capacity, and overlaying these with trends in the market and competitive environment, it often becomes clear how things will keep going if nothing changes. Integrating some level of outsourcing can help companies reverse downward trends and improve their market position by helping to alleviate the pain points that are causing problems.

If your company recognizes these warning signs and pain points, contact SCI today and let our logistics experts help you with an in-depth analysis of whether outsourcing is the right move.

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