Southeastern Ontario Hospitals to Implement Shared Services for Supply Chain Management Using SAP® Solutions

Shared Support Services Southeastern Ontario Will Leverage SAP® ERP to Standardize and Integrate Procurement Processes of Six Healthcare Organizations to Reduce Costs

TORONTO - SAP Canada Inc., a subsidiary of SAP AG (NYSE: SAP), today announced that Shared Support Services Southeastern Ontario (3SO) has selected the SAP® ERP application as the standard technology platform to centralize, manage and realize better value from procurement processes for its members, and reduce IT and procurement costs.

3SO was created by six healthcare organizations in Southeastern Ontario as a shared services initiative to develop a regional integrated supply chain management model in order to optimize the use of funds for medical supplies, services and capital equipment and drive continuous adoption of best practices in supply chain management among the area hospitals.

“A few of our members have already participated in integrated supply chain management services in the past and have realized benefits such as reduced costs and increased efficiencies,” said Lyndon Smith, general manager, 3SO. “With the rising costs of providing healthcare to Ontarians, we needed to find a way to further capitalize on these business benefits for a wider base of hospitals-utilizing a shared services approach will allow us to do so. After reviewing our options through a formal evaluation process with representatives from all six healthcare organizations, we unanimously chose SAP as best positioned to meet our functional and technical needs as well as for its experience in the healthcare industry.”

Kingston General Hospital, a member of 3SO, implemented SAP ERP previously to better manage its back-office processes and has seen significant improvements in reporting and control of government subsidies, increased accuracy in tracking project costs and enhanced efficiency in processing employee vacation accruals and quotas. The new project will expand the existing SAP system at Kingston General Hospital and integrate procurement processes across member hospitals in Southeastern Ontario.

3SO will leverage SAP ERP, a proven, market-leading enterprise resource planning application that helps organizations better manage their businesses, optimize operations and perform critical functions, including procurement and logistics, financials, human capital management, and sales and service. It provides powerful analytic functionality to improve decision-making and increase efficiency in procurement, inventory and warehouse management, and customer service, among others. SAP ERP supports shared services models by automating and standardizing core business processes that thereby reduce IT complexity and costs. The application also increases supply chain visibility and enables real-time collaboration among customers, suppliers and partners.

“Canadian public services organizations, especially in healthcare, are increasingly working together and sharing information, processes and infrastructure to deliver maximum value to their customers,” said Mark Aboud, president and managing director, SAP Canada. “SAP has enabled hundreds of organizations in Canada and worldwide to deliver shared services to reduce costs, leverage best practices, maximize resources and increase competitive advantage. With shared services, healthcare customers such as 3SO can gain financial savings and efficiencies to help lower healthcare costs and further improve patient care for Canadians.”

3SO members include Brockville General Hospital, Hotel Dieu Hospital of Kingston, Kingston General Hospital, Perth and Smiths Falls District Hospital, Providence Care and Quinte Healthcare Corporation.

About Shared Support Services Southeastern Ontario
Shared Support Services Southeastern Ontario (3SO) is a nonprofit shared services organization created to develop a regional integrated supply chain management model to oversee procurement and logistics for health service providers in Southeastern Ontario. Its focus is to optimize the use of healthcare funds for supplies and continue to facilitate the adoption of leading supply chain practices.

About SAP Canada Inc.
SAP Canada Inc., based in Toronto, is a subsidiary of SAP AG (NYSE:SAP), the world’s leading provider of business software*. SAP applications are helping Canadian enterprises of all sizes improve productivity and customer relationships, reduce costs, increase revenues and profitability, and create efficiencies across supply chains and business operations. SAP Labs Canada, a division of SAP Canada, develops cutting-edge software for a wide array of SAP applications from its Montreal, Toronto and Vancouver locations.

SAP Canada and Business Objects, an SAP company, have collectively more than 1,200 customers and over 2,300 employees across Canada.

For further information, please visit www.sap.ca.

About SAP
SAP is the world’s leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With approximately 76,000 customers (includes customers from the acquisition of Business Objects) in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” (For more information, visit www.sap.com)

(*) SAP defines business software as comprising enterprise resource planning and related applications.

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