SUPPLY CHAIN MANAGEMENT

Submitted To: Dr. Ajay Kumar Sinha

Submitted On: 2nd July 2018

 Nikita Sharma 17021141067

 Priyanka Singh 17021141084
 Rishi Kaul 17021141076
INDEX

 INTRODUCTION TO AMUL
 COMPANY BACKGROUND
 AMUL FACT FILE
 STRATEGIES OF AMUL
 AMUL’S SUPPLY CHAIN MANAGEMENT
 AMUL PATTERN
 Amul Supply Chain and Practices
 Conceptual Framework
 Business Model
 GCMMF
 E- SUPPLY CHAIN MANAGEMENT OF AMUL
 AMUL CYBER STORE
 BENEFITS OF E-SCM
 FUTURE PLANS
 PROBLEMS IN SCM
 ANALYSIS AND FINDINGS
 CONCLUSION
 BIBLIOGRAPHY
Introduction


The Kaira District Co-operative Milk Producers Union Limited, popularly known as
Amul Dairy is a US $ 500 million turnover institution.


It is an institution built up with a network of over 10000 Village Co-operative
Societies and 500,000 plus members.

Formed in the year 1946 Amul is the leading food brand in India

Amul initiated the dairy co-operative movement in India and formed an apex co-
operative organization called Gujarat co-operative Milk Marketing Federation

(GCMMF) and today 70,000 villages and 200 districts in India are part of it.


GCMMF markets its products through 50 sales offices throughout India and
distribution is done through a network of 4,000 stockist who in turn supply 500,000
retail outlets.


Managed by an apex cooperative organization, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41
million milk producers in Gujarat, India


Amul is the largest food brand in India with an annual turnover of US $1068 million
(2007-08)


Currently Amul has 3.11 million producer members with milk collection average of
6.04 million litres/day.


Amul is the largest producer of milk and milk products in the world.
Company Background:

Amul means priceless in Sanskrit. The company has been coming into the picture in
year 1946. A range of products such as butter, milk powder, cheese, chocolates etc.
have made Amul a leading food brand in India. Amul or Gujarat Co-operative Milk
Marketing Federation (GCMMF) is probably one of the best cases where the raw
material as well as finished product is perishable. As many as 2.2 million farmers’
supply the raw material i.e. milk. The advantages are probably that the raw material
supply is assured, come what may but on the flip side whatever happens to the finished
goods market, raw material must be procured and used up in the in the stipulated
period.

Inspired by Sardar Vallabhbhai Patel and executed by Morarji Desai a handful

of farmers formed the Kaira District milk co-operative (KDMC) in 1946. About 250 l of
milk collected daily from the farmers of two village co-operative societies was
pasteurized and sent to the Bombay milk scheme.

In 1973, a need was felt to professionally market the products being packed at
several dairy plants in the state and GCMMF was born. The growth process continued
and the Anand pattern become a benchmark.

In 1994, when all over India, quality and TQM philosophy was being
implemented, GCMMF was being one of the frontrunners.

Kaizen Programme was implemented in May 1995 to improve employee

participation and increase a feeling of belonging. This was followed by ‘Hoshin kanry’,
which means a methodology for strategic direction setting. It provides a step by step
planning, implementation and review process for managed changed.
AMUL fact file: -

Type: Cooperative

Founded: 1946

Headquarters: Anand (Gujarat), India

Key people: Chairman, Gujarat cooperative milk marketing

federation Ltd. (GCMMF)

Industry: Dairy

Milk Production: 100 million ton (2008-09)

Revenue: Template: Revenues $1billion USD (In 2008-09)

Employees: 2.41 million milk producers

Slogan: Taste of India

Website: www.amul.com
AMUL logo and its importance: -

Symbol of Amul (Anand milk union ltd.) is ring of four hands, which have coordinated
each other. The actual meaning of this symbol is coordination of hands of different
people by whom this union is at top. The first hand is of farmer, second hand of
processor, third hand of marketer, and the fourth hand of customer. It’s the joint effort
& productive team work that has enabled its success.

Amul’s strategy is broadly divided into two components:

The first one is the collection chain and the second one is the Supply chain. The
collection chain starts from weighing the milk to determination of the fat content in the
milk to finally calculation of the purchase price. While the supply chain starts from
storing the milk to processing the milk to finally distributing the milk.
Amul’s Supply Chain Management
AMUL PATTERN

3 Tier structures of Amul

1. Village Dairy Cooperative Society (VDCS)

The milk producers of a village, having surplus milk after own consumption, come
together and form a Village Dairy Cooperative Society (VDCS). The main functions of
the VDCS are as follows:

• Collection of surplus milk from the milk producers of the village &
payment based on quality & quantity

• Providing support services to the members like Veterinary First Aid,

Artificial Insemination services, cattle-feed sales, mineral mixture sales,
fodder & fodder seed sales, conducting training on Animal Husbandry &
Dairying, etc.

• Selling liquid milk for local consumers of the village

• Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and
assisted by the District Milk Union.

2. District Cooperative Milk Producers’ Union (Milk Union)

The Village Societies of a District having surplus milk after local sales come together
and form a District Milk Union. The main functions of the Milk Union are as follows:

• Procurement of milk from the Village Dairy Societies of the District

 • Arranging transportation of raw milk from the VDCS to the Milk Union.
• Establish Chilling Centers & Dairy Plants for processing the milk received from
the villages.

• Selling liquid milk & milk products within the District

• Process milk into various milk & milk products as per the requirement of State
Marketing Federation.

• Decide on the prices of milk to be paid to milk producers as well on the prices
of support services provided to members.

3. State Cooperative Milk Federation (Federation)

The Milk Unions of a State are federated into a State Cooperative Milk Federation.
The Federation is the apex tier under the three-tier structure. The main functions of
the Federation are as follows:

• Marketing of milk & milk products processed / manufactured by Milk Unions.

• Arranging transportation of milk & milk products from the Milk Unions to the
market.

• Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

• Arranging for common purchase of raw materials used in manufacture /

packaging of milk products.
AMUL SUPPLY CHAIN MANAGEMENT PRACTICES

AMUL is a dairy cooperative in the western India that has been primarily responsible,
through its innovative practices, for India to become the world’s largest milk producer.

The distinctive features of this paradigm involve managing a large decentralized

network of suppliers and producers, simultaneous development of markets and
suppliers, lean and efficient supply chain, and breakthrough leadership.

Every day Amul collects 447,000 litres of milk from 2.12 million farmers, converts the
milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60
million) to over 500,000 retail outlets across the country.

To implement their vision while retaining their focus on farmers, a hierarchical network
of cooperatives was developed, this today forms the robust supply chain behind
GCMMF’s endeavours. The vast and complex supply chain stretches from small
suppliers to large fragmented markets.

Management of this network is made more complex by the fact that GCMMF is directly
responsible only for a small part of the chain, with many third-party players
(distributors, retailers and logistics support providers) playing large roles. 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,
affordable price.
Conceptual Framework

SCM at AMUL (GCMMF): -

The supply chain of Amul can be described in the following steps: -

• Some 2.2 million farmers from 12 districts of Kaira (head), Sabar Kantha,
Baroda, Panchmahal, Rajkot, Bharuch, Mehsana, Banas Kantha, Surat,
Ahmedabad, Valsad and Gandhi nagar reach the milk collection centers every
day in the morning and afternoon to sell the milk their buffaloes have given in
the morning and in the noon

• The total milk procurement in the last year 2002 was an average 47.32 l per
day where the peak the peak procurement touched a high of 62 l. All the milk
procurement centers are equipped with computers and electronic milk testers
(EMTs). EMTs ensure efficient testing and measurement of milk constituents.
The computers run the automatic milk collection system, which ensures
immediate preparation of milk payment bills, transparency of operations and
greater efficiency of milk collection.

• The milk is then sent to chilling depots in each village of the member unions.
There are 10852 villages under GCMMF and each one has a village
Cooperative society. VDC also runs the automatic milk collection system.

• The milk is then sent to the 12-member unions. All of them run an ultra-modern
dairy that processes this raw material, which has traveled from faraway villages
to the district headquarters.

• The various products made under the flagship of AMUL such as butter, milk
powder, cheese, dahi, readymade foods such as Gulab jamun, pizza etc. Are
manufactured at these various plants and distributed through the various
 distributors across the country and abroad through GCMMF.

One reason that Amul is the giant it is because it’s built on the back of a co-operative
movement. It encourages women and farmers to collect milk from their cows and pass
it on to them for a price. By managing milk supplies from the cattle farmer and sending
it straight to the factory, it’s could eliminate the middleman. Complexity and dynamics
of the supply chain make it very difficult to assess the interaction effects.

Increased cooperation among network members has resulted in many changes at all
levels -- operational, tactical and strategic, and has led to the emergence of practices
and strategies for improving the chain's performance. Most prominent among these
include the following:

(i) Information sharing, often dynamically, to improve planning and execution.

Sharing of POS data is a classic example for minimizing the distortions due to bull-
whip effect and reducing perceived variability of demand by the partners in the chain.
Typically, information sharing extends to costs as well.

(ii) Focus on core competence of each player in the chain. The objective is to
ensure that each task is performed by the entity best suited for it. As a result, firms
have become willing partners in ceding control to a network partner for improving
performance. VMI in many industries is a direct result of such change in management
thinking. Similarly, the role of third parties for providing specific expertise such as
logistics has grown substantially with emphasis on supply chain.

(iii) Capacity improvement: It helps network partners in improving their capability and
making them competitive.

Milk procurement

Total milk procurement by our Member Unions during the year 2009-10 averaged
93.02 lakhs kilograms (9.30 million kgs) per day representing a growth of 6.68% over
87.19 lakhs kgs (8.7 million kgs) per day achieved during the year 2008-09. The
highest procurement as usual was recorded during January 2010 at 122.5 lakhs kgs
per day.
The distribution networks

Amul products are available in over 500,000 retail outlets across India through its
network of over 3,500 distributors. There are 47 depots with dry and cold warehouses
to buffer inventory of the entire range of products.

GCMMF transacts on an advance demand draft basis from its wholesale dealers
instead of the cheque system adopted by other major FMCG companies. This practice
is consistent with GCMMF's philosophy of maintaining cash transactions throughout
the supply chain and it also minimizes dumping.

Wholesale dealers carry inventory that is just adequate to take care of the transit time
from the branch warehouse to their premises. This just-in-time inventory strategy
improves dealers' return on investment (ROI). All GCMMF branches engage in route
scheduling and have dedicated vehicle operations.

Amul products are available in over 500,000 retail outlets across India through its
network of over 3,500 distributors. There are 47 depots with dry and cold warehouses
to buffer inventory of the entire range of products.

GCMMF transacts on an advance demand draft basis from its wholesale dealers
instead of the cheque system adopted by other major FMCG companies. This practice
is consistent with GCMMF's philosophy of maintaining cash transactions throughout
the supply chain and it also minimizes dumping.
THE BUSINESS MODEL

From the very beginning, in the early 1950s, AMUL adopted the network as the basic
model for long-term growth.
• The network explicitly includes secondary services to the farmer-suppliers.

• Several of the entities in the network are organized as cooperatives linked in a

hierarchical fashion.

Customers: In comparison with developed economies, the market for dairy products
in India is still in an evolutionary stage with tremendous potential for high value
products such as ice cream, cheese etc. The distribution network, on the other hand,
is quite reasonable with access to rural areas of the country. Traditional methods
practiced in western economies are not adequate to realize the market potential and
alternative approaches are necessary to tap this market.

Suppliers: Most of the suppliers are small or marginal farmers who are often illiterate,
poor, and with liquidity problems as they lack direct access to financial institutions.
Again, traditional market mechanisms are not adequate to assure sustenance and
growth of these suppliers.

Third Party Logistics Services: In addition to the weaknesses in the basic

infrastructure, logistics and transportation services are typically not professionally
managed, with little regard for quality and service. In addition to outbound logistics,
GCMMF takes responsibility for coordinating with the distributors to assure adequate
and timely supply of products. It also works with the Unions in determining product
mix, product allocations and in developing production plans. The Unions, on the other
hand, coordinate collection logistics and support services to the member-farmers. In
what follows we elaborate on these aspects in more detail and provide a rationale for
the model and strategies adopted by GCMMF.

Simultaneous Development of Suppliers and Customers: From the very early

stages of the formation of AMUL, the cooperative realized that sustained growth for
the long-term was contingent on matching supply and demand. The member-suppliers
were typically small and
marginal farmers with severe liquidity problems, illiterate and untrained. AMUL and
other cooperative Unions adopted many strategies to develop the supply of milk and
assure steady growth. First, for the short term, the procurement prices were set to
provide fair and
reasonable return. Second, aware of the liquidity problems, cash payments for the milk
supply was made with minimum of delay. This practice continues today with many
village societies making payments upon the receipt of milk. For the long-term, the
Unions followed a multi-pronged strategy of education and support. For example, only
part of the surplus generated by the Unions is paid to the members in the form of
dividends.

Managing Third Party Service Providers:

Unions focused efforts on these activities and related technology development. The
marketing efforts were assumed by GCMMF. All other activities were entrusted to
third parties. These include logistics of milk collection, distribution of dairy products,
sale of products through dealers and retail stores, some veterinary services etc. It is
worth noting that a number of these third parties are not in the organized sector, and
many are not professionally managed. Hence, while third parties perform the
activities, the Unions and GCMMF have developed many mechanisms to retain
control and assure quality and timely deliveries. This is particularly critical for a
perishable product such as liquid milk. Its core activity lay in milk processing and the
production of dairy products and all other activities such as logistics of milk
collection, distribution of dairy products, sale of products through dealers and retail
stores, provision of animal feed, and veterinary services were entrusted to third
parties.

Coordination for Competitiveness

Coordination is one of the key reasons for the success of operations involving such
an extensive network of producers and distributors at GCMMF. Some interesting
mechanisms exist for coordinating the supply chain at GCMMF.
These mechanisms are:

Inter-locking Control

The objective for developing such an inter-locking control mechanism is to ensure that
the interest of the farmer is always kept at the top of the agenda through its
representatives who constitute the Boards of different entities that comprise the supply
chain. This form of direct representation also ensures that professional managers and
farmers work together as a team to strengthen the cooperative. This helps in
coordinating decisions across different entities as well as speeding both the flow of
information to the respective constituents and decisions.

Coordination Agency: Unique Role of Federation

Its objective is to ensure that all milk that the farmers produce gets sold in the market
either as milk or as value added products and to ensure that milk is made available
to an increasingly large section of the society at affordable price.

Supplier Enhancement and Network servicing

Their objective is to ensure that producers get maximum benefit and to resolve all their
problems. They manage the procurement of milk that comes via trucks & tankers from
the Vs. They negotiate annual contracts with truckers, ensure availability of trucks for
procurement, establish truck routes, monitor truck movement and prevent stealing of
milk while it is being transported.
Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

Distribution Network of GCMMF:

Most producers work with marketing intermediaries to bring their products to market.
The marketing intermediaries make up a marketing channel also called distribution
channel. Distribution channels are sets of interdependent organizations involved in the
process of making a product or service available for use or consumption.

The Head Office of GCMMF is located at Anand. The entire market is divided in 5
zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and
Chennai. Moreover, there are 49 Depots located across the country and GCMMF
caters to 13 Export markets.

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food

products marketing organization. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and serve the
interest of consumers by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has
assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of
GCMMF.

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

GCMMF VALUE CHAIN IN NOIDA AND GHAZIABAD

1. Production of milk 2. Milk collection 3. Milk processing

4.GCMMF(Marketing)

5.Distribution 6. Retailing 7. customers

The above figure describes the hierarchical nature of the cooperative structure. It
presents the Supply chain linking farmer-suppliers of milk with the millions of
consumers. Gujarat Cooperative Milk Marketing Federation or GCMMF is the
marketing entity for the State of Gujarat.
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 end users using internet
technologies.
E-SCM refers to the complex network of relationship that organizations maintain with
trading partner to source, manufacture and deliver the products.

Components of E-SCM
E-SCM Diagram of Amul

Working of E-SCM

Amul has installed over 3000 automatic milk collection system units (AMCUS) at
village societies to capture member information, milk fat content and amount payable
to each member.
Each member is given plastic card for identification
Computer calculate amount due to the farmer based on the fat content
The value of the milk is printed out on the slip and handed over to the farmer, who
collects the payment from the adjacent window.
Thus, with the help of it farmer gets the payment within the minutes
On the logistic more than 5000 trucks move milk from the villages to 200 dairy
processing plants twice a day according to a carefully planned scheduled .
Every day Amul collects 7 million liters of milk from 2.6 million farmers (many illiterate),
converts the milk into branded, packaged products, and delivers goods to over
500,000 retail outlets across the country
ERP software named as enterprise wide integrated application system covers an
operation like planning advertisement and promotion and distribution network
planning.
Each Amul office are connected via internet and all of them send daily reports on sales
and inventory to the main system at Anand.

Supply & Distribution

At the supply end a computerized database has been setup of all suppliers & their
cattle.
Computer equipment measures & records qualities & quantities collected.
At the distribution end Stuckists have been provided with basic computer skills. Amul
experts assist them in building promotional web pages.
Amul Cyber stores have been setup in India, USA, Singapore and Dubai

Amul Cyber Store

Strong Initiatives in E-commerce

Amul has linked distributors to the network & also incorporated web pages of top
retailers on their website.
Distributors can place their order on website amulb2b.com
Automated supply & delivery chain practices just in time supply chain management
with six sigma accuracies.

Benefits of E-SCM


Supports exchange of real time information


Platform independent


Web visibility & processing capability 24/7


Return on investment


It has open internet application architecture which allows for Rapid deployment
& scalability combining unlimited users in real time environment


Incorporates broadcast & active messaging

Future Plans:

Introduce Internet Banking Services & ATMs which will enable Milk societies to credit
payments directly to seller’s bank account
Officials at Amul are looking at upgrading the plastic cards which are being currently
used only for identification purposes, to smart cards which can be used to withdraw
cash from ATMs.
Expansion of distribution network, creative marketing, consumer education and
product innovation, we will leverage effectively on rising income levels and growing
affluence among Indian consumers.
Tapping the rising demand for new value-added products.
Problems and issues with respect to supply chain faced by the AMUL

Managing this supply chain efficiently is critical as GCMMF's competitive position is

driven by low consumer prices supported by a low-cost system.
In the past years the concept of just-in-time was not introduced, all GCMMF branches
were engaged in route scheduling and have dedicated vehicle operations.
Even though the cooperative was formed to bring together farmers, professional
managers and technocrats would be still required to manage the network effectively
and make it commercially viable. It is worth noting that many third parties are not in
the organized sector, and many are not professionally managed with little regard for
quality and service.
This is a particularly critical issue in the logistics and transport of a perishable
commodity where there are already weaknesses in the basic infrastructure.
Its network which consists of large number of members requires regular roll out
improvement programs and high implementation rate of these programs.
Having a strong supply chain is only the beginning, the remaining part includes making
consumer products that sell well and that the same consumers can be impacted by
marketing and advertising movements.
The organization was also suffering from the high middleman cost which was tackled
by managing milk supplies from the cattle farmer and sending it straight to the factory.
Due to the perishable nature of the product, it must invest in cold storage which is an
extra burden in distribution and warehousing.
At the time Amul was formed; consumers had limited purchasing power, and modest
consumption levels of milk and other dairy products. Thus, Amul adopted
a low-cost price strategy to make its products affordable and attractive to consumers
by guaranteeing them value for money.
In addition to the weaknesses in the basic infrastructure, logistics and transportation
services are typically not professionally managed, with little regard for quality and
service.
GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to
employ Internet technologies to implement B2C commerce. Today customers can
order a variety of products through the Internet and be assured of timely delivery with
cash payment upon receipt. Another e-initiative underway is to provide farmers access
to information relating to markets, technology and best practices in the dairy industry
through net enabled kiosks in the villages. GCMMF has also implemented a
Geographical Information System (GIS) at both ends of the supply chain, i.e. milk
collection as well as the marketing process.
ANALYSIS and FINDINGS

Following are the major issues analyzed with respect to the SCM of Amul:

Larger lead time: -

Many third parties are not in the organized sector, and many are not professionally
managed with little regard for quality and service. Due to the old and obsolete means
of transportation, failure of machinery etc. leads the delay in reaching to retailers and
end users. In the past years the concept of just-in-time was not introduced, all GCMMF
branches were engaged in route scheduling and have dedicated vehicle operations.
Due to the perishable nature of the product, it must invest in cold storage which is an
extra burden in distribution and warehousing. As a result, need of JIT were felt and the
concept has introduced to avoid any kind of delay and destruction of products.

Introduction of just-in-time inventory strategy improves dealers' return on investment

(ROI).

Gap between demand and supply: -

Due to the unprofessional and inexperienced 3PL providers there is vast gap between
demand and supply. In the peak season, the company fails to satisfy the retailers’
demand on certain products. Since the lead time was high so company were unable
to get raw material on time and were unable to produce final product to match with the
quantity demanded by retailers and consumers. Amul decided to focus on farmers
facing business processes such as supply, distribution and its own internal operations.
The main goals of the supply chain initiative were improving forecast accuracy to
match supply with demand, delivery performance to avoid stock-outs thereby creating
a dependable and reliable brand image without excessive spend. These steps were
taken to reduce dependency on cold storage.

SUPPLIERS: -
The member-suppliers were typically small and marginal farmers with severe liquidity
problems, illiterate and untrained. AMUL and other cooperative Unions adopted many
strategies to develop the supply of milk and assure steady growth. First, for the short
term, the procurement prices were set to provide fair and reasonable return. Second,
aware of the liquidity problems, cash payments for the milk supply was made with
minimum of delay.

Managing Third Party Service Providers:

Well before the ideas of core competence and the role of third parties in managing the
supply chain were recognized and became fashionable, these concepts were
practiced by GCMMF and AMUL. From the beginning, it was recognized that the core
activity for the unions lay in processing of milk and production of dairy products.
Accordingly, the unions focused efforts on these activities and related technology
development. The marketing efforts (including brand development) were assumed by
GCMMF. All other activities were entrusted to third parties. These include logistics
of milk collection, Distribution of dairy products, sale of products through dealers and
retail stores, some veterinary services etc.

Some other issues found in its supply chain are as follows: -

• It has excellent ability to anticipate the right type of product at the right time through
the years.
• Amul is a cooperative where the milk suppliers are the shareholders. The owners
decide what they should pay themselves for the raw material they supply. A unique
situation where the owners of the company are also its largest vendors!
• To implement their vision while retaining their focus on farmers, a hierarchical
network of cooperatives was developed, which today forms the robust supply chain
behind GCMMF's endeavors.
• Introduction of just-in-time inventory strategy improves dealers' return on
investment (ROI).
• To manage the network effectively and make it commercially viable professional
managers and technocrats were introduced.
• The company has core competency in milk processing and the production of dairy
 products and all other activities were entrusted to 3PLs
• In freight logistics solutions limited, Transport Corporation of India, Gammon India
ltd. are some of its main 3PL providers.
• Amul was one of the first FMCG firms in India to employ Internet technologies to
implement B2C commerce. Today customers can order a variety of products
through the Internet and be assured of timely delivery with cash payment upon
receipt. It has also implemented a Geographical Information System (GIS) at both
ends of the supply chain, i.e. milk collection as well as the marketing process.

Recommendations & suggestions

• Amul should improve its distribution system, as it has already implemented on ERP
in the company, still due to in disciplined behavior of its distributors, retailers suffer
which ultimately affect the consumers.
• We know that the time schedule of the distributors & their transportation system
cannot be capsuled, but they can reduce their errors. E.g. drive carefully to prevent
accidents.
• Manpower should be more than 18 years of age. (in some of the areas, we have
observed small children engaged in loading & unloading the trays from the truck)
• Before offering any extra benefits or schemes to their retailers, Amul should aware
them in advance, so that the incentives can be reached in the right hands at right
time. otherwise distributors enjoy the benefits of retailers.
• Codification of raw material should be done in an easily understand manner.
• Reduce the solving time of the consumer/retailers’ complaints.
• Payment to the milk suppliers should be made on time to ensure the proper inflow
of milk.
• Amul should also launch certain schemes for households. It has schemes for
retailers but not for households. This section being the major user of milk and to
enter a new area such starting schemes can be very helpful.
• For refrigerated and frozen food distribution, a world class cold chain would help
in providing quality assurance to the consumers around the region.
• Logistics and transportation services should be professionally managed to avoid
wastes.
• Use of internet for exploring the unknown terrain.
• Active customer feedback should be taken regularly for increasing product line.
• Employees of GCMMF should involve actively in all activities of the member
unions.

• Relationship with business associates like wholesaler should be made closer and
deeper.
• The company should take initiative to reduce transportation time from the depots
to the wholesale dealers, improvement in ROI of wholesale dealers,
implementation of Zero Stock Out through improved availability of products at
depots and also the implementation of Just-in-Time in finance to reduce the float.

• Completely in tune with the ground reality an enquiry is initiated on the

organizational climate. This gave detail about the core competencies and most
importantly gave details about the handicaps and inadequacies.
• Have recognized “change” as an essential factor governing business needs and
hence incorporates changes in every form at every stage.
Conclusion

Amul has established itself as a uniquely appropriate model for rural development.
Amul has spurred the white revolution of India, which has made India the largest
producer of milk and milk products in the world. Amul products have been in use in
millions of homes since 1946. Today Amul is a symbol of many things like of high-
quality products sold at reasonable prices & the genesis of a vast co-operative
network. Its supply chain is easily one of the most complicated in the world. The supply
chain linking farmer-suppliers of milk with the millions of consumers. Amul encourages
women and farmers to collect milk from their cows and pass it on to them for a price
directly eliminating cost of middleman. Introduction of just-in-time inventory strategy
improves dealers' return on investment (ROI). Amul was one of the first FMCG firms
in India to employ Internet technologies to implement B2C commerce. Today
customers can order a variety of products through the Internet and be assured of timely
delivery with cash payment upon receipt. It has also implemented a Geographical
Information System (GIS) at both ends of the supply chain, i.e. milk collection as well
as the marketing process.
BIBLIOGRAPHY

websites

• http://www.scribd.com/doc/26263301/Amul-Project
• http://www.scribd.com/doc/10260519/Amul
• http://www.authorstream.com/Presentation/anjusha786-138867-amul-
entertainment-ppt-powerpoint/
• http://www.docstoc.com/docs/30663883/Amul-dairy-report
• citeseerx.ist.psu.edu/viewbook/downloaded=10.1.1.104.9685...
• http://streamlinesupplychain.wordpress.com/2009/11/15/what-walmart-
can-learn-from-amul/
• www.amul2b.com
• Extracted from www.Wikipedia.com for supply chain management theory

• Extracted from Operation Management (6th Edition) by Russell & Taylor.

• Extracted from www. www.amul.com for information about products and

supply chain management.

Books

• Kulkarni S & Sharma A. (2002), supply chain management, Gujarat

cooperative milk marketing federation (Amul), TMH publishing co.ltd.95-109
• Chidambaram S., Whitman L., & cheraghi S.H. (1999) a supply chain
transformation methodology, San Antonio, T X USA:
http//156.26.35.52/papers/70SC&W&SC.pdf