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Verma Submitted by Rajdeep Datta / 6 ment for Free 2 of 10 26/09/2010 11:27 AM .H.com/doc/36835518/Amul-Supply-Chain-Management Submitted to Prof.scribd.Amul Supply Chain Management http://www. M.
through its innovative practices. simultaneous development of markets and suppliers. retailers and logistics support providers) playing large roles.000 retail outlets across the country. and delivers goods worth Rs 6 crore (Rs 60 million) to over 500. The distribution network Amul products are available in over 500.12 million farmers .Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping.scribd. converts the milk into branded. GCMMF markets and manages the Amul brand.Amul Supply Chain Management http://www. with a number of third party players (distributors. for India to become the world¶s largest milk producer. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain. this today forms the robust supply chain behind GCMMF¶s endeavors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system of providing milk at a basic. which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products. a hierarchical network of cooperatives was developed. GUJARAT COOPERATIVE MILK MARKETING FEDERATION (GCMMF) GCMMF is India's largest food products marketing organisation.000 retail outlets across India through its network of over 3. To implement their vision while retaining their focus on farmers. The vast and complex supply chain stretches from small suppliers to large fragmented markets. This just-in-time inventory strategy / 6 ment for Free 3 of 10 26/09/2010 11:27 AM . which are good value for money. packaged products. lean and efficient supply chain.com/doc/36835518/Amul-Supply-Chain-Management AMUL¶s SUPPLY CHAIN MANAGEMENT PRACTICES Introduction AMUL is a dairy cooperative in the western India that has been primarily responsible. Every day Amul collects 447.000 litres of milk from 2. The distinctive features of this paradigm involves managing a large decentralized network of suppliers and producers. It is a state level apex body of milk cooperatives in Gujarat. affordable price.500 distributors. and breakthrough leadership.
The chemical components of milk are water. logistics and transportation services are typically not professionally managed. it supplies pizzas even to rural market.com/doc/36835518/Amul-Supply-Chain-Management improves dealers' return on investment (ROI).Amul Supply Chain Management http://www. on the other hand. with little regard for quality and service. Several of the entities in the network are organized as cooperatives linked in a hierarchical fashion. It will be surprising to know that AMUL makes even the µSarpanch¶ to eat pizza i. AMUL and other / 6 ment for Free 4 of 10 26/09/2010 11:27 AM .scribd. the market for dairy products in India is still in an evolutionary stage with tremendous potential for high value products such as ice cream. All GCMMF branches engage in route scheduling and have dedicated vehicle operations. Again. In order to avoid wastage AMUL converts the milk in to SNF and milk solids by evaporating the water. traditional market mechanisms are not adequate to assure sustenance and growth of these suppliers. GCMMF takes responsibility for coordinating with the distributors to assure adequate and timely supply of products. In what follows we elaborate on these aspects in more detail and provide a rationale for the model and strategies adopted by GCMMF. coordinate collection logistics and support services to the member-farmers. In addition to outbound logistics. Suppliers: A majority of the suppliers are small or marginal farmers who are often illiterate. Customers: In comparison with developed economies.e. This is possible only if the distribution channel right from the producer to the consumer is well organized. poor. the cooperative realized that sustained growth for the long-term was contingent on matching supply and demand. It also works with the Unions in determining product mix. The Unions. illiterate and untrained. THE BUSINESS MODEL From the very beginning. Largest Cold Chain: AMUL has the largest cold chain network in India (i. SNF and solids. cheese etc. Simultaneous Development of Suppliers and Customers: From the very early stages of the formation of AMUL. in the early 1950s. The member-suppliers were typically small and marginal farmers with severe liquidity problems. which comprises up to 6070% of milk contents. AMUL adopted the network as the basic model for long-term growth. Traditional methods practiced in western economies are not adequate to realize the market potential and alternative approaches are necessary to tap this market. is quite reasonable with access to rural areas of the country. The distribution network.e. Milk is very perishable product so it has to be consumed within 24 hours. Third Party Logistics Services: In addition to the weaknesses in the basic infrastructure. The network explicitly includes secondary services to the farmer-suppliers. 18000 refrigerators) as compared to any other company. and with liquidity problems as they lack direct access to financial institutions. on the other hand. product allocations and in developing production plans.
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