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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-06-07 Daily Xml
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BUDGET SAVINGS INITIATIVES

48 Dr McFETRIDGE (Morphett) (1 June 2010). What revised arrangements to procurement activities will be undertaken to achieve the $44.1 million of savings identified in the 2009-10 Budget?

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for Mental Health and Substance Abuse, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts): I am advised:

The Procurement and Supply Consolidation Project, identified in the 2009-10 Budget, is expected to achieve savings of at least $44.1 million over the period 2009-10 to 2012-13.

The primary objective of the consolidation project is for SA Health to establish a single service that delivers best practice procurement, contracting and supply chain management to the public health system. As site by site transition to the new consolidated operating model occurs, financial savings will be derived from:

improved sourcing by leveraging entire SA Health spend

improved process efficiency through standardisation, automation and innovative supply chain techniques

elimination of off-contract buying through better defined, tightly controlled processes

improved standardisation and rationalisation of products

improved productivity associated with efficient, effective product search processes (catalogues) and improved demand forecasting

reduced product inventories and obsolescence throughout the supply chain.

The full implementation across SA Health will occur over the 2009-10 and 2010-11 financial years. The implementation will occur in line with, and be supported by, the rollout of the new Oracle Corporate System across SA Health. The benefit of these savings will contribute to the South Australian Governments Strategic Plan to realise increased administrative efficiencies to allow funds to be reinvested into frontline services across SA Health.

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