In the interim, a number of area health services have implemented e-catalogues of their own, each with its own stock numbers that will need to be changed to comply with a uniform set of codes to be introduced in late 2006.

The catalogues are not linked to the NSW Health system and an interface is yet to be developed.

The auditor general's report noted that initiatives within the department are implemented at a slow pace, pointing out that a restructure announced in July 2004 was the first major change in 18 years.

Responding to the report, NSW Health director general Robyn Kruk said the audit highlights the breadth and complexity of procurement within the health system.

Kruk said while the report makes a contribution to the difficulties in reforming supply chains, "it is a pity it does not reflect that many of the progress delays have been caused by external factors", adding that the auditor general's recommendations are consistent with the department's reform agenda.