Kuwait introduces automated system to curb waste

KUWAIT: The Ministry of Social Affairs of Kuwait has successfully introduced an automated system in cooperative societies, decreasing financial waste and administrative violations while improving access to subsidized goods.

According to the Dr Sayed Issa, Acting Assistant Undersecretary for Financial and Administrative Affairs and Cooperative Affairs, the completion of a financial and administrative linkage with all cooperatives has made it possible to identify loopholes, halt manipulation and address inefficiencies more quickly.

“This unprecedented success resulting from the automation of the cooperative purchasing cycle will have broad positive repercussions on the decrease in prices of food and consumer goods sold within the cooperatives,” Issa said.

“Directing wasted funds to support goods contributes to lowering prices, relieving many of the financial burdens on shareholders.”

He added that funds previously lost to waste were now being redirected to support subsidised goods, easing financial pressure on shareholders.

Issa said that the savings would also allow cooperatives to expand social services and improve facilities, including market branches, landscaping and cleanliness.

Acting Assistant Undersecretary for Financial and Administrative Affairs and Cooperative Affairs explained that the automated system replaces manual purchasing processes with a digital platform that monitors inventory levels, generates purchase orders and integrates directly with points of sale.

It also manages supplier data through a centralised database, recording prices, delivery times and minimum order quantities.

Dr Issa said the system also establishes effective communication channels with suppliers. The automated system allows cooperatives to track actual inventory, determine reorder points, and maintain additional stock to prevent shortages.

Using RFID barcodes, the system monitors inventory levels and facilitates automated reordering for fast-moving items, generating purchase orders based on historical data.

Issa stressed that continuous improvement is a priority, with quarterly assessment of automation rules, adjustments to reordering levels, and the addition of new supplier integrations to enhance procurement efficiency.

“The automated system enabled the Ministry to identify and stop loopholes and manipulations, directing waste towards subsidizing goods to reduce prices and expand access to services,” he added.