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Some of the facts in any Government public health organization:

1. The demand exceeds the means
2. All demanded items may not be the real needs
3. Quantity demanded exceeds the actual need
4. Shortage of funds is an ever green issue
5. How much more money is needed ? No body knows, but demand is voiced.

Why?

The mind set is:

Public money is no body's my money. Every one is an expert to reason out the demand. but no one scientifically quantifies and evakluates the need, inspite of decades of experience.

Lets do some gap analysis on the existing manual system:

Procurement happens on adhoc basis, intution basis and sometimes on apprehension basis.
Inventory Managament System (I M S) is not in place.
Warehouse Management system (W M S) too is not in place
No S O P for procurement, storage and distribution and indenting.

Under the circumstances, Vendors have free play in public fund operation.
Demand is created under the pressure or under the obligation to vendor.
In turn the vendor gifts cash or kind, the value of which is proportionate to the demand putforth.

This is curruption.

How does the e-technology can prevent this menace?

A. No items takes position in the store without Goods Received Note (GRN) generated by computer system
B. Issues / Distribution is through computer system

The activity 'B' cannot happen unless 'A' is done.

Depending on the average issue during a specific period like Week, month, quarter, half yearly:

1. Max and Min Stock level would be fixed for each item

2. Re-Ordering Level (R O L) will be fixed for each item.

3. System prompts to generate Purchase Order (PO) based on ROL

If the quantity is to be hiked either out of genuine need or under pressure / obligation of the vendor, the authorized person can do it but after registering his entry under a pass word and with reason.

4. payment to vendor would happen by electronic system (ECS)

5. Vendors contact with the office and officer / official is almost nill.

6. No vendor would offer gifts / cash for routine indent quantity that happen automatically and officers would be helpless in favouring any as system would identify them if they meddle the quantity.

Once the payment happens on time with no hazle, many of the genuine manufacturers voluntarily participate in tender and offer supplies.

Middle men who have been representing manufacturers simply vanish, as they have no work to workout!

7. The system can be extended upto end user

e-tendering:

Technical and commercial bid evaluation happens almost in the system itself.

But reason needs to be recorded to rule out L1 tender.

But still there is one area where corruption can happen. It is at the end user, as it is happening with regard to implants.

But e-technology is the only way to eradicate CORRUPTION in procurement

-bhagavan p s