SUPPLY CHAIN OF MOTHER DAIRY MILK IN DELHI

Competitive Strategy
Supply Chain Strategy
Supply Chain design
 Distribution Strategy
• Mother Dairy In bound Logistics
• Procures milkfrom hundreds of cooperatives located in several North
Indian states.
• The milk is transported to the Patparganj plant in East Delhi, where it is
homogenized, pasteurized and then stored in insulated tankers at low
temperature.
 Mother Dairy
Out bound Logistics
• Nearly a hundred of its tankers crisscross Delhi and supply milk to over
600 booths located in the city.
• Sells loose milk through 200 manually operated containers setup in
shops in congested areas.
• Over 400 delivery agents, who home deliver milk in some localities and
• 850 retail shops sells in polythene packs
• The demand is calculated using calendar scheme in this depending on
the pre calculated seasonal demands the outlet place their order
accordingly
• In order to satisfy immediate demand, 20 to 25 tankers are provided
with a buffer stock of 500 litres each day
• All tankers are equipped with HAM radios to cater demand
Distribution Channels

Token Distribution COW( container on wheels) Retailers

Also termed as “lohe ki Bhains”, is Manual milk distribution program Packaged milk is distributed via
an automated milk vending in which cycle rickshaw are retailers
machine employed for milk distribution
 Mode of Transportation

• Insulated trucks are used for collection as well as distribution

• Mother Dairy is a leading marketer of dairy products and fruit &
vegetable products in the Indian sub-continent.

• Mother Dairy has set up a 100 per cent Export Oriented Unit
with a capacity for processing over 15000 metric tones of fresh
produce annually.

• New state-of-the-art plant with an installed capacity for

processing 10 metric tones of fruit per hour in Bangalore.
• The units are ISO 9001-2000 and HACCP certified, and the
products are Kosher certified.

• Established a marketing and distributional office in Rotterdam

which is another step towards providing quicker and better
service to its international customers .
Deals in:- -
• Mother Dairy focuses on delivering value at every stage - right from the farm to
the plant.

• Aspects that make Mother Dairy an outstanding brand

• Best ingredients,
• Streamlined processes,
• Reliable customer service.
About
• ‘Mother Dairy’ is the largest liquid milk brand in Asia. It started its
operations in 1974 under the Operation Flood programme of the
National Dairy Development Board, which is one of the largest
dairy development projects in the world. Mother Diary, Delhi is
IS/ISO- 9002 & IS-15000 (HACCP) certified organization.

• ‘Mother Dairy’ is the single largest brand of milk in Delhi, India as

well as in Asia, marketing about 1.9 million liters of milk per day.

• Mother Dairy commands 40% market share in the organized

sector in and around Delhi, primarily because of consistent quality
and service reliability.

• ‘Mother Dairy’ test over over 15 lakh LPD (Distributed

Programming Laboratory) of milk procured from various State
federations.
• In addition to toned milk through Bulk vending, Mother
Dairy also markets
• Full cream milk,
• standardized milk,
• toned milk,
• double toned milk
• Skimmed milk (lite) in polypacks.
 DIRECTION OF MOVEMENT OF CHAIN

The right
+
The right
+ +
The right The right
+
The right
+
The right
= Higher
Product Price Store Quantity Customer Time Profits

Supplier Distributor Customer

Processing Plant Retailer

Process of Procurement & Distribution
of Milk

• Farmers and the Milk Co-operative Society.

The Operation Flood programme helps both farmers as well as the
city consumers. The programme ensures that the farmers get a fair
price for their cow & buffalo milk and the consumers get best
quality milk at reasonable prices.
• In order to maintain freshness, this milk is chilled and then
transported to Mother Diary in insulated milk tankers by road and
by rail.
• Checking the quality of milk

At the Dairy stringent hygienic standards are maintained. The milk in the
tankers is first checked for quality and freshness and then unloaded into
huge insulated stainless steel storage tanks. These tanks have a capacity
of 1 lakh liters each. The presence of adulterants (impurities) like urea,
neutralizers, preservatives and germs like bacteria are checked. All these
tests ensure that only good quality milk is accepted. Once empty, the
tankers are thoroughly cleaned and sanitized using acid and alkali. The
tankers are then finally rinsed with water.
• Processing of milk

Unprocessed milk may contain small dirt particles

invisible to the naked eye. In order to remove
these particles the milk has to be processed.
• Dispatching of milk

After processing, the milk is chilled and stored in silos and further chilled
to about 2 C. 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.
• Making the milk available

The control room is very vital to the efficient distribution of milk to

the 900 shops across the city. It organizes the tanker routes and
its staff is responsible for ensuring that shops do not run out of
milk. Each milk tanker is fitted with a wireless set. As soon as the
incharge at the control room learns that a particular shop is
running out of milk, he contacts the tanker nearest to the shop on
the wireless which then delivers the extra milk to it.
• Quality control all the way

A final quality check of the mill is also made at the shop itself. This
ensures that milk reaching the customers is of same quality as
dispatched from the Dairy.
• Keeping milk cool

• Mother Dairy takes care to keep milk cool at every stage-it is

chilled before transporting in insulated tankers, it is stored in
insulated silos and kept in refrigerated tanks at the shops.

Keeping milk cool slows down the rate at which bacteria multiply.
This also increases its shelf life.
 Mother Dairy India Limited.,
NDDB HOUSE
Safdarjung Enclave
New Delhi -110029
Contact Person : N. Babu
New DelhiArvind
- 11 00Singhal
01
Technopak Advisors, Fourth Floor, DLF Tower 8-A
Tel.: +91 011 41529100
DLF Cyber City, Phase II
Fax: +91 011 41527170
Gurgaon 122 002 (National Capital Region of Delhi)
E-mail: export@motherdairy.com
Haryana, India
Tel: (91-124) 454 1111, 288 1111
Website: www.motherdairy.com
Fax: (91-124) 454 1198, 454 1199
Email: arvind.singhal@technopak.com
Web: www.technopak.com

Thank You !