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Published by Ajay Kumbhar

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Published by: Ajay Kumbhar on Oct 21, 2012
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A case study on IT in SCM

processing and distributing the milk in required time .Case Background     Amul is a leading food brand in India 50 sales offices throughout India Distribution is done through a network of 4. supply 500. in turn.000 retail outlets Complexity in logistics   Millions of liters of milk to be collected from millions of village members Perishable commodity  Strong coordination function is required in storing. who.000 stockists.

milk fat content volume collected. and amount payable to each member The customized ERP has been implemented across the organization integrating various operational departments.Evolution of IT at Amul       Automatic Milk Collection System Units (AMCUS) at village societies to capture member information. Web enabled customer feedback channels . Amul also connected its zonal offices. regional offices and member’s dairies through VSATs Amul is also using Geographic Information Systems (GIS) for business planning and optimization of collection processes Data analysis software utilization for milk production estimation and increasing productivity.

Structure of Information Systems .

Benefits of using IT         Time reduction Reduction of pilferage Reduced human errors On the spot payments for farmers Wastage is reduced Transparency of operation Operational integration Monitoring veterinary health and controlling the outbreak of disease .

Transforming: Transform processes to meet the demand.Benefits of IT in Amul SCM          Streamlining: Communicate and collaborate more effectively with suppliers. tanks. and invoicing capabilities. billing. Synchronizing: Synchronize the flow by managing the capacity of vessels. Analyzing: Analyze your supply chain and manufacturing options and choose the plan that makes best use of your assets. Optimizing: Optimize your day-to-day logistics performance to reduce costs and improve customer satisfaction. Designing: To create an optimal supply chain network and adapt the network to keep pace with changes in your business. and lines-and the flow between them. Maximizing: Maximize profits by using advanced costing. . Connecting: Make the connection between what your customers want and what you produce. Understanding: Get a better understanding of your supply chain and implement the changes you need to optimize.

Existing levels of trust helped them to reinforce the working relationships. This helped them to create trust. The implementation was carried out in a limited way and the system was expanded after validation. thereby facilitating the user acceptance Amul had been known for treating all its customers alike. The waiting time for payment was completely eliminated Working closely with the supplier. The personal interest and commitment of the executives eliminated the teething problems and gave the users access to the new technology. helped in the hardware/software customization. . Understanding of ground conditions helped Amul to design the system considering customer needs. The reputation of the agency was a major factor that increased the acceptance of the new technology The new system endowed substantial benefits to the customer.Conclusion The critical factors that contributed to the success of IT implementation       Understanding the baseline operations comprehensively is the starting point for designing IT system.

Thank You .

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