THE COMPANYTHE COMPANY

• Amul means priceless in Sanskrit

• Since 1946

• Market leaders for Amul butter

• Turnover of 25 billion

• Amul is a symbol for• High quality at reasonable prices

• Genesis of a vast co-operative network

• Triumph of indigenous technology

• Farmer’s organization

THE PRODUCTSTHE PRODUCTS

• Bread spreads• Cheese ranges• UHT milk• Milk powders• Fresh milk• Ice creams• Chocolates• Mithaiee range

SCM and Market LogisticsSCM and Market Logistics• Implementation of an ERP program as low as

Rs. 3 corers in collaboration with TCS ltd.

• Synchronized working and best possible utilization of the available resources

• Maintains details regarding the inventory management.

THE CHANNEL NETWORKTHE CHANNEL NETWORK

• Distribution channel- downstream flow

• Procurement channel- upstream flow

DOWNSTREAM FLOWDOWNSTREAM FLOW

• First leg• Manufacturing units to company depots using 9 and 18 MT

trucks

• Frozen food-below 18C

• Dairy wet-0-4C

• Second leg• Depots to WDs

• Transport through insulated 3 and 5 MT TATA 407’s

• Third leg• WDs to retailers

• Transport through rickshaws according to the beat plan

UPSTREAM FLOWUPSTREAM FLOW

• Milk is taken to VCS by farmers by bicycles

• Transportation of milk from the co-operatives to the manufacturing units through trucks equipped with tankers equipped to carry milk

Selection Criteria of the Channel Selection Criteria of the Channel MembersMembers

• Authentication by way of identity• Proof of solvency-details of the bankers• Safety of inventory by getting the company stock

insured• Proper storage space in forms of refrigerators• The company requires the dealers to furnish any

Advertising & Sales initiative undertaken by them on behalf of the company

Selection Criteria Conti…Selection Criteria Conti…

• Details of delivery vehicles• Competent salesman• Details of the product kept of other companies

have to be provided • Dealers of the company must carry a good

reputation • Market coverage of distributors need to be defined

Motivation Of Channel Motivation Of Channel MembersMembers

• Distributors– Margins– Trade marketing– Total quality management– Vision and mission statemnts– Amul yatras

Motivation Cont…Motivation Cont…

• Retailers– Trade schemes– Glow boards– Schedule of the salesman– Infrastructure of facilitation

Evaluation of Channel Evaluation of Channel MembersMembers

• Beat plan

• Cumulative performance

• Target versus achievement

• Other criteria

Conflicts among Channel Conflicts among Channel MembersMembers

• Ownership of assets• Stocking issues• Replacement of products• Credit policy• Packaging• Replenishment• Margins

Cooperation Among Channel Cooperation Among Channel MembersMembers

• Amul quality circles

• Pilot salesman scheme

• Scheduling of sales

• Agreement defining rights

ObservationsObservations

• Strength in its procurement

• Leverage on the relationship

• Strength in transport channel

• No promotional schemes undertaken

• Non profit driven organization

• Push strategy

Comments and SuggestionsComments and Suggestions

• Amul should go in for exclusive outlets

• Push carts

• Trade promotions

• Home delivery

• Increase margins

• Additional salesman on field

Thank You!!Thank You!!