In 2014, the implementation of Universal Healthcare Covera will begin, which is a nationwide program aimed at ensuring heath services coverage for all citizens. This regulatory move will greatly expand the market share for Low Price Medicine (LPM) generic products to some 170 million people. SOHO Global Health sees this as an immense market for growth as well as an opportunity to create value and serve more customers capitalizing on our existing LPM capabilities.
In anticipation of the Universal Health Coverage, over the past two years SOHO Global Health has taken steps such as registering essential products, ensuring that products are cost competitive in preparation for tenders, and increasing our production capacity. For example SOHO Global Health has invested in a new US$30 million sterile factory occupying 4.3 hectares which will be ready to start operations in early 2015 in Cikarang, West Java, Indonesia. In the first stage, SOHO Global Health will construct facilities for active pharmaceutical ingridients (API), a laboratory and utility building. This factory will have production capacity for 100 million units of pills and ampoules per year, roughly three times the production capacity of current facility.
Various business process innovations took place during the year to support core business growth. For example on the distribution side, a ground-breaking Mobile Sales Automation (MSA) initiative was implemented in which tablets were distributed for ordering purposes. This initiative directly linked process from ordering to invoicing and enhancing supply demand planning that more closely coordinated the principals with SOHO Global Health's Central Logistics and Branches.
By automating business process through IT where possible, for example by replacing manual workflows with digital workflows, we cut down on paper and eliminated wait times, thus improving business process, increasing efficiency and reducing material usage. Automation has also significantly assisted the Finance division with financial reporting such as e-procurement TM1 and integrated reporting going forward. Supply & Operations played a key role in supporting growth of core business. International standards are applied to our manufacturing facilities, which are GMP (Good Manufacturing Practice) certified with a focus on high quality and zero deviation and are regulatory compliant with ingridients that are approved by BPOM. With regard with GMP, there are three basic elements that must be observed: facilities, system and culture. Facilities must be compliant, system must be established for high quality and minimum deviation, and there must be a culture of compliance and continuous improvement. While SOHO Global Health has established all three, we realize that the cultural component must be continually cultivated with the support of management to ensure that it flourishes.
In order to deliver quality improvements, an initiative called Metamorphosis Competition was implemented - whose objective is to create continuous improvement and deliver products to consumer and business units faster and cheaper, with the same standards of quality and safety. Phase one focuses on ensuring the quality and safety of our manufacturing practices. Phase two focuses on Lean Manufacturing, and phase three focuses on advanced decision making. Thus far, the Methamorphosis Competition has yielded significant results for the business in terms of optimizing resources, supported by the realignments of internal human resources as needed.
From time to time customers expect to receive the products just in time together with the related data from branches. Therefore SOHO Global Health DISTIBUTION (PT. PARIT PADANG GLOBAL) develops value added services in meeting customer satisfaction by equipping the salesmen with Personal Digital Assistant (PDA).
PDA brings all the data in the memory ( i.e. stock data, credit plafond, term of payment, due date collection, sales program, etc) besides having accessible online system to the branches. Salesman inputs the orders in his PDA then sends it directly to the invoice officer. By IT system, the orders are selected whether they comply to the standard operation procedures.
Eventually, PP delivers service excellence in terms of :