amul prasanna

7/31/2019 Amul Prasanna

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SCM

&

Distribution channel

PRESENTED BY:PRASANNA LAD(10)VAIBHAV JADHAV(07)SUBODH SINGH(20)BALIRAM DESAI(04)


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CHANNELWhat is SCM?

SCM is the management of a network of all business

processes and activities involving procurement ofraw materials, manufacturing and distributionmanagement of Finished Goods.

SCM is also called the art of management of providingthe Right Product, At the Right Time, Right Place and atthe Right Cost to the Customer.

Distribution channel-

A path through which goods and services flow in onedirection (from vendor to the consumer), andthe payments generated by them that flow in theopposite direction (from consumer to the vendor).


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Amul Company

Dr Verghese Kurien,was the

Chairman of theGCMMF(Gujarat Co-operative

Milk Marketing Federation

Ltd),an apex cooperative

organisation, based in the inAnand town of Gujarat, India.


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Overview

AMUL means "priceless". The brand name "Amul,comes

from the Sanskrit word "Amoolya,

The Brand AMUL (ANAND MILK UNION LIMITED)

is owned by The Gujarat Cooperative Milk Marketing

Federation(GCMMF).

It was established in year1946.

GCMMF is Largest Food Products Marketing organization of

India, with a revenue of $2.5 Billion.

It links 3.18 Million Village Milk producers and16,117Cooperative Societies across 24 Districts to milk and

dairy consumers across India.

White revolution of India was an initiative under the

Umbrella of Amul.


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Key Elements of Business Model Operations that are low cost, high quality and

high efficiency (Competitive Edge).

Strict margins at retail and distribution ends,utilizing economies of scale to remaincompetitive.

High Sharing of profits with Farmers, todevelop long-term relationships with them.


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Village Dairy Cooperative Society

(VDCS)

Collection of surplus

milk & payment based

on quality & quantity.

Providing support

services to the

members.

Selling liquid milk forlocal consumers of the

village.

Supplying milk to the

District Milk Union


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Procurement of milk from the VDCS

Providing input services to the producers.

Conducting training on Cooperative

development

Providing management support & regular

supervision to the VDCS.

Establish Chilling Centers & Dairy Plants

for processing the milk.

Selling liquid milk & milk products

within the District.

Process milk into various milk & milk

products.

Decide on the prices of milk to be paid to

milk producers.

District Cooperative Milk Producers Union

(Milk Union)


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E- SUPPLY CHAIN MANAGEMENT OF

AMUL

Amul uses E- SUPPLY CHAIN MANAGEMENT

E-SCM may be described as the integrated management

approach for planning and

controlling the flow of materials from suppliers to the endusers using internet

technologies.

E-SCM refers to the complex network of relationship

that organizations maintain withtrading partner to source, manufacture and deliver the

products.


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E-SCM OF AMUL Amul has installed over 3000 Automatic milk collection

system units(AMCUS) at village societies to capture

member information, milk fat content, volume collected andamount payable to each member.

An average of 1,000 Farmers sell milk at a Local

Cooperative society.

Each Farmer has plastic cards for identification. The Identification Number is fed into a computer.

The milk is then weighed and the fat content of the milk is

measured by an electronic fat testing machine.

The Computer then calculates the amount due to a farmeron the basis of the fat content in the milk.

The value of the milk is then printed out on a slip and

handed over to farmer who collects the payment at adjacent

window.


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COMPONENTS OF E-SCM


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Benefits of E-SCM

Supports exchange of real time information

Web visibility & processing capability 24/7

Return on investment

Incorporates broadcast & active messaging


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THE CHANNEL NETWORK

Procurement channel- upstream flow

Distribution channel- downstream flow


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Procurement Activities at the village level comprised developing

and servicing the VCSs.

Increasing milk collection, procuring milk, andtransporting it to the chilling and processing units

twice a day.

The VCSs provided the farmers with good quality

animal feed, fodder, and other services like

veterinary first aid.


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COLD STORAGE NETWORK

Chillers in proximity of villages

Prompt transport to district facilities for further

dispatch to consumers/ processing units.

Chilled trucks to transport processed products

Delivery to local chillers by insulated rail tankers

and chilled trucks.

Refrigerators and freezers with retailers and

departmental stores to retain freshness.


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Distribution GCMMF coordinated with various unions to get a

regular supply of milk and dairy products.

The processed milk and dairy products were

procured from district dairy unions and distributedthrough third party distributors.

To ensure quality and timely deliveries, GCMMF

and the district unions had several mechanisms inplace.

The unions monitored the supplies of milk and thedistribution of finished products.


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DOWNSTREAM 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 407s

Third leg WDs to retailers

Transport through rickshaws according to the beat plan


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Members 17 District Cooperative MilkProducers' Unions

No. of Producer Members 3.18 MillionNo. of Village Societies 16,117Total Milk handling capacity per day 13.67 Million litres per dayMilk Collection (Total - 2011-12) 3.88 billion litresMilk collection (Daily Average 2011-12) 10.6 million litres (peak 13 million)Milk Drying Capacity 647 Mts. per dayCattlefeed manufacturing Capacity 3690 Mts. per daySales Turnover -(2011-12) Rs. 11668 Crores (US $2.5 Billion)


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221852258823365274572894229225

3773642778

52554

67113

80053

97742

116680

0

20000

40000

60000

80000

100000

120000

140000

Turnover in Cr

turnover


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Distribution and DealersDistribution ChannelFrom the manufacturing units to the

retailers.

Amul products are available in over 10,00,000 retailoutlets across India through its network of over 5,000distributors.

First LegFrom manufacturing units to Depots: Amul has

65 depots across major cities of India. Second LegFrom Depot to Wholesale Dealers: Amul has

a network of over 5000 distributors . The margins offeredto the distributors range between 3-5%.On every cratethere is a margin of Rs 5.5 .No volume discounts to

distributors, prices are fixed. Third Leg - This is the flow of good from WDs to

retailers, a beat plan is prepared and transportation is doneon auto-rickshaws, rickshaws and bicycles.


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Physique :

Taste, QualityPersonality :Simple, Indian

Self-Image :Proud Indian, Fun loving

Reflection :Value Oriented

Culture :Co-operative, Sharing

Relationship:Sociable

WHY AMUL IS ?


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