Managing Demand Supply of Covid Essential Items

Assumptions:

1.     It is very difficult to forecast the timing and quantum of demand for these items and rate at which it will grow or contract.

2.     A lot of people in India have bought and are holding Covid Essential Items like Oxygen Cylinders/ Concentrators/ Injections

3.     They bought it to insulate themselves against risk of not getting it in hour of need

4.     There is huge idle capacity of Covid Essential Items which is lying idle in various households and needy people are dying because of non-availability

5.     There will be significant number of individuals and Corporates who would like to invest in such items

As Covid is here to stay for considerable time, how Public-Private participation can solve this problem, ease the burden on Government and make it more transparent.

Proposed Solution: ‘Covid Essentials Bank’ - CEB

This Body created and managed by Private sector with Governance structure in place. The Bank will have an online storefront with listing of Covid Essential Items and its price. For example

1.     Oxygen Cylinders – INR 12000

2.     Oxygen concentrators – INR 50000

3.     ICU Beds – INR 35000

4.     Key Medicines- INR 5000

Any Individual with Aadhar / Pan number or Company / Corporate with any Government registration number can register with the Bank.

Modus Operandi

1.     An individual / Company makes an investment to buy and own any of the listed items on the online store of ‘Covid Essential Bank’. Post payment processing, Investor in this case will be delivered a digital ID of the asset / assets against his purchase. This ID should be tagged with the Asset and linked back to the Order. (block chain can be used)

2.     Corporates can use CSR funds to buy and own assets (To be used for their employees / affiliates)

3.     Use AI and ML models trained on data - population of different states and availability of these essential item in the state (Government hospitals or private hospitals), usage pattern etc. This should throw the planning parameters for stock at each of the mother warehouse across the country.

4.     Procurement and Distribution of items should be done based on the above-mentioned planning parameters. These items will be procured and stored in bank and issued to various hospitals on need basis but will remain property of Bank and not hospitals.

5.     Certain portion (say 10% ) to be reserved for owner’s usage

6.     In case of need, owner is either directed to the hospital near his location where these assets are being deployed or issued from the reserved stock so that he can manage his situation.

The key to success of such a program will be dependent on following

1.     Investor to have conviction and trust that he/she will get the asset / item in hour of need for personal usage. It is equivalent to the concept of liquidity in case of financial investment.

2.     It should be completely digital process.

a.     Account Registration

b.     Buying Item / Items

c. Making payment

d.     Procurement of Items

e.     Distribution of items to various mother warehouses

f.      Issuance of items to Hospitals

g.     Request by an investor for getting the item for personal usage

h.     Dashboards available to Investor to view where his /her assets is lying.

Who should be the Key Contributors to this program?

1.     Governing Body (People of repute and relevant knowledge and experience for example Nandan Nilekani, Uday Kotak, Ratan Tata, Sachin Bansal, Anand Mahindra etc)

2.     Banks like Kotak / ICICI /HDFC etc to facilitate the transparent management of the funds provided by the investors

3.     Software Giants like Microsoft / Google / AWS to provide their Cloud platforms and Applications (Low code No code), Block Chain to build the IT backbone

4.     System Integrators like TCS/ Infosys / IBM to build the Applications and integrations

5.     E-commerce Giants Like Amazon and Flipkart to provide the Procurement and warehousing infrastructure

6.     Logistics companies like Blue dart / Fedex to manage the last mile delivery from mother warehouse to Hospitals

7.     Public and Companies as Investors

8.     Government (Centre and State) to ensure that there are no licensing and permission bottlenecks, and this initiative remains outside the control of Politicians, bureaucracy, and Inspector Raj.

Anything like this has never happened in the past, and so is the tragedy related to pandemic. There may be multiple big and small holes in this idea and concept but let ‘Out of Box thinking’ begin to happen, it is the need of the hour. Next big question is, who will initiate and how will it get executed, I think body like CII should initiate such a move.