supply chain model for amul
TRANSCRIPT
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PRESENTATIONON
OVERALL
DISTRIBUTION CHANNEL OF
“AMUL”
PRESENTED BY SAMIM, PANKAJ, CHITRA, ABHISHEK, SAVITA, NAGRAJ.
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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
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IntroductionIntroduction
• The “Bottom of the Pyramid” Structure.
• Founded by Dr. Verghese Kurien : Father of white revolution in India
• Successful “value for money” strategy.
• A successful cooperative society that always take care of the farmers and loyal customers.
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PRODUCTS
• Bread Spreads
• Milk Drinks
• Powder Milk
• Fresh Milk
• Cheese
• For Cooking
• Chocolate
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GCMMF: An Overview
• Members– 13 district cooperative milk producers Union
• No. of Producer Members– 2.79 million
• No. of Village Societies– 13,328
• Total Milk handling capacity– 11.22 million liters per day
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NETWORK
• Available in over 5 lakh outlets in a network of around 4000 distributors
• 47 depots with dry and cold warehouses to buffer inventory of all its products
• Advance demand draft basis from wholesale dealers
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Cont…
• Milk collection (Total - 2008-09): 3.05 billion liters.
• Milk collection (Daily Average 2008-09): 8.4 million liters
• Milk Drying Capacity: 626 Mts. per day
• Cattle feed manufacturing Capacity: 3500 Mts. per day
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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.
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Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products.
GCMMF = Gujarat Co-operative Milk Marketing Federation; MUs = Member Unions; VCs = Village Co-operatives.
Supply Chain at Amul
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THE CHANNEL NETWORKTHE CHANNEL NETWORK
• Distribution channel- downstream flow
• Procurement channel- upstream flow
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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
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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
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Distribution Process
Company (Gujrat) Depots (Bangalore) Wholesaler 20% Margin (No.15)
Retailer 5% Margin Consumers
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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
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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
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VALUE CHAIN PROCESS
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Thank You!!Thank You!!