MASTER OF BUSINESS ADMINISTRATION

2022-24

SUBMITTED TO:
Dr Saurabh Tiwari

SUBMITTED BY:
SUBHESH NARAYAN PADHI
 1-Describe the entire supply chain of Amul?
Ans- Through this hierarchical supply chain that encompasses many
types of businesses ranging from small suppliers to huge fragmented
markets, Amul's ultimate purpose is to help the farmers. In order to
lower consumer costs and raise supplier returns, the supply chain
paradigm had to be modified.

The following are Amul's main supply chain strategies:

1) Core activities and third-party service providers:

Amul decided to concentrate on its essential dairy business while

outsourcing its other needs. For instance, AMUL concentrated on the
conversion of liquid milk into a range of dairy products, as well as the
related research and development. On the other hand, third parties
were used to manage the logistics of milk collecting and product
distribution to customers.

2) Assistance to stakeholders:

Amul gives reasonable profits on a big volume item to distributors and

retailers. It provides assistance with demand forecasting, minimising
any potential bullwhip impacts brought on by unskilled sales partners.
Additionally, it provides shops with simple repayment plans for
infrastructure expenditures (freezers, etc.).
 3) Increasing the Supply of Milk:

Better economies of scale are produced by increasing the supply of the

product . In order to enhance supply, the unions help milk producers
with a variety of aids (such as cattle feed, veterinary care, and technical
training) that were affordably acquired through large-scale sourcing.
The overall development of the community is another goal of aid.

4) Bridging Gaps in a Fragmented/Unstable Supply-Side Market:

Given the dispersed structure of the producers, supply tends to change

depending on a number of variables while demand stays largely
constant. To ensure that surpluses can be preserved and supplied to
village level centres that are experiencing a shortage of supply, the
unions have invested in cold storage facilities. This effectively reduces
supply instabilities.

5) Technology Initiatives:

A system for automatically collecting milk that can assess its quality and
amount was developed. Since more than 1000 producers visit a village
cooperative every day, this results in time savings and greater
transparency. Enterprise-wide Multiple sub software systems were put
in place and aligned using integrated application systems. The
establishment of a Geographic Information System allowed for real-
time monitoring of supply inequalities.
 2-How the co-operative collects and distribute milk?
Ans- The co-operative movement in India must be taken into
consideration for the research of dairy activities to be thorough.
Working as a team to accomplish goals is what is meant by cooperation.
The spirit of Indian village communities was predominately focused on
the idea of cooperation. A contrast is established between them based
on the amount of territory they cover at the local, regional, national,
and international levels of contemporary cooperative societies.

Cooperative dairy is organised as follows:

1) The highest level of the state cooperative Milk Federation Ltd.

2) District-level Taluka or District Cooperative Milk Federation.

3) Village-level primary cooperative milk-producing cooperatives.

COLLECTION OF MILK:

Everywhere at the district level, dairy activity is done. The main milk
organisations gather milk at the village level and provide it to the dudh
sangh at the district level. This includes the district's milk collection and
dudh sangh distribution. Dairy cooperatives stand out from other milk
marketing channels due to their involvement in the acquisition of milk
and the provision of essential services to dairy producers. Dairy farmers
that sell their milk to dairy cooperatives are paid fairly for it.
Additionally, these facilities offer monetary security and periodically
distribute funds to dairy farmers. As a result, the dairy cooperatives
give the dairy producers a combined sum. The primary barrier to this
channel is the dairy cooperatives' slow payment schedules. The
impoverished households prefer to trade their marketable surplus
through other channels since they cannot wait longer times to receive
the cash. It is clear that dairy farming is crucial to the livelihood of
impoverished and landless people in the local economy. Government
and cooperative agencies are involved in milk marketing through the
organised sector, whilst private groups are involved in the unorganised
sector. The unorganised sector accounts for the majority of milk
marketing, with the organised sector having a very small contribution.
India's dairy cooperatives are organised in three tiers, with state-level
federations, district milk unions, and village-level dairy co-operative
societies, respectively. Dairy co-operative societies have been
established as a result to supply the local milk demand and end the
current milk marketing fraud. The establishment of dairy cooperatives
and the construction of their infrastructure cost a substantial sum of
money. The growth of dairy cooperatives has fueled rural people's
empowerment and aided rural development.

Cold storage Network

• Quick distribution to district facilities so that consumers or processing

units can get the product.

• Use of chilled trucks to transport processed goods

• Cooled and insulated rail tankers transport supplies to nearby chillers.

• Shops and department stores utilise refrigerators and freezers to

preserve the freshness of their food.

2. Distribution channel

 GCMMF worked with numerous unions to ensure a steady supply

of milk and dairy products.
 District dairy unions supplied the processed milk and dairy
products, which were delivered by third party distributors.
 GCMMF and the district unions have many measures in place to
assure quality and timely delivery.
 Unions kept an eye on milk supplies and final product distribution.

Downstream Flow

• First leg

I. Manufacturing units to company depots using 9 and 18 MT trucks

II. o Frozen food below -18 C

III. Dairy wet 0-4 C

• Second leg

I. Depots to WDs

II. o Transport through insulated 3 and 5 MT TATA

III. 407's

• Third leg

I. WDs to retailers

II. Transport through rickshaws

Reverse Logistics

Milk Churn
 From Dairy to VCS
Pouch Milk Tray / Bottle
 From retailer to dairy
Damaged Products
 From customer to retailer then to dairy
Direct Retailing
 Amul has lately entered direct retailing with the
establishment of "Amul Utterly Delicious" parlours in
key cities.
 Amul intends to establish a big network of similar
restaurants, which will be handled by franchisees
around the country.
 More than 2000 parlours with a combined revenue of
Rs. 200 crores.