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 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 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 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.”
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.