Page 698 - ePaper
P. 698
SPECIAL TASK FORCE ON DEVELOPING INVESTMENT PROJECT
PIPELINE IN THE EU- MALTA PROJECT LIST
Estimated Project Costs are Euro 15 million.
Current Status:
This project forms part of a larger endeavour to bring back order to the
system for procurement and distribution of medicine which the present
administration on takeover in March 2013 found a non-system plagued
with lack of controls and regular out of stock mishaps.
A lot of work has already been done to regularise payments to suppliers
and to change the procurement systems to reduce stock-holding and
increase stock turnover without suffering out of stock situations.
However a point has now been reached where further enhancement
depend on capital investment in technology based system and central
stores.
Barriers to execution:
Financing is the only bottleneck as fiscal compression does not
permit financing of such projects even though it will bring self-
financing economies over the medium term.
Solutions:
1. Consolidate all warehouses into a centralised warehouse that facilitates
efficient operational procedures - Budget approx. EUR 2 million
2. Implement a solid stock keeping IT system that underpins all the
interacting systems and create an architecture that provides total
control and visibility throughout the supply chain – Budget approx. EUR
5 million
3. Control all movements and transactions as well as physical cycle
counting through the use of RFID where all individual stock keeping units
(SKUs) will have an RFID tag and radio frequency equipment will
automatically read all the legal and illegal movements of stocks - Budget
approx. EUR 2 million
23 | P a g e
PIPELINE IN THE EU- MALTA PROJECT LIST
Estimated Project Costs are Euro 15 million.
Current Status:
This project forms part of a larger endeavour to bring back order to the
system for procurement and distribution of medicine which the present
administration on takeover in March 2013 found a non-system plagued
with lack of controls and regular out of stock mishaps.
A lot of work has already been done to regularise payments to suppliers
and to change the procurement systems to reduce stock-holding and
increase stock turnover without suffering out of stock situations.
However a point has now been reached where further enhancement
depend on capital investment in technology based system and central
stores.
Barriers to execution:
Financing is the only bottleneck as fiscal compression does not
permit financing of such projects even though it will bring self-
financing economies over the medium term.
Solutions:
1. Consolidate all warehouses into a centralised warehouse that facilitates
efficient operational procedures - Budget approx. EUR 2 million
2. Implement a solid stock keeping IT system that underpins all the
interacting systems and create an architecture that provides total
control and visibility throughout the supply chain – Budget approx. EUR
5 million
3. Control all movements and transactions as well as physical cycle
counting through the use of RFID where all individual stock keeping units
(SKUs) will have an RFID tag and radio frequency equipment will
automatically read all the legal and illegal movements of stocks - Budget
approx. EUR 2 million
23 | P a g e
