Life sentence for NSW Health's e-catalogue project

25.11.2005
Australia's NSW Department of Health has spent 15 years struggling to develop an electronic purchasing catalogue that is still nowhere near completion.

The e-catalogue is just one of a long list of projects that have been riddled with problems since the department first began efforts to implement a standard procurement process that includes a single IT system for state-wide data collection and information sharing.

Despite launching an ambitious supply chain reform strategy (SCRS) in the year 2000 in a bid to improve purchasing processes, little progress has been made, according to a NSW Auditor General report released this week.

The SCRS was earmarked for completion in late 2003, but the report says the department is still years away from developing standardized procurement processes.

However, to date the SCRS has achieved savings of more than A$60 million (US$44.4 million) since 2002, which is still well below the initial target of A$80 million. NSW Health has 250 hospitals across the state, which spend more than A$1.3 billion annually on goods and services.

One obstacle has been a lack of financial resources according to the report which states that the e-catalogue, to be used to monitor supplies, is yet to secure the necessary funds required for it to be implemented.