Challenges

Supplying milk everyday without fail is a challenge indeed in

view of
Short life cycle(Perishable goods)
Complex planning process for in bound and out bound
Logistics for movement of products
Demand fluctuation
Production scheduling (Variety increases complexity)
Finally managing flow of information, fund, product
seamlessly across different entities is crucial for growth and
profitability of the organization

Distribution Networks

Process Flow Chart

Distribution Networks
Mother Dairy has over 820 distribution outlets in NCR.
Each of these place their demand by raising an invoice
one day in advance. The demand is also calculated
using the Calendar scheme, in which orders are placed
depending on pre-calculated seasonal demands.
To satisfy immediate demand 20-25 tankers are
provided with buffer stock of 500L each day so they can
be mobilized to cater to demand in each area. To
coordinate operations all tankers have HAM radios.

Distribution Steps

Procurement
Mother Dairy sources its requirement of liquid milk
from dairy co-operatives and other producer
institutions.
Milk collected from Hundreds of cooperative all over
Gujarat, Haryana, Rajasthan, Punjab, Uttar Pradesh
It is then transported to plants in Delhi every day for
pasteurizing and chilling.

Distribution Channels
Special Insulated Tankers to transport milk between
different centers and outlets. Distribution is carried out via
Local Area Distributors.
Token Distribution: Also, termed as Lohe ki bhains (metal
buffalo), is an automated milk vending machine.
Retailers: The packaged milk is distributed via the
distributor network throughout the city. Sells through 850
retail shops in poly packs ( both half and one liter)
Container on Wheels or COW is a manual milk distribution
program in which cycle-rickshaws are employed for milk
distribution.

Dispatch
79 tankers in the morning and 75 tankers in the evening bring in
milk from the regional collection centers.
After collection the same tankers are utilized for the delivery of
the processed milk to the vendors and outlets
After processing, the milk is chilled and stored in silos and
further chilled to about 2 Degree Celsius by the glycol chilling
system, and then dispatched to the Milk Shops in insulated road
milk tankers.
Prior to the milk being dispatched in tankers, it is tested for
quality to make sure that it meets the quality standards.
When the tanker arrives at the shop the milk is transferred into
a large refrigerated tank.