SUPPLY CHAIN MANAGEMENT OF

Group : 2

AMUL-AN OVERVIEW
Also known as Gujarat Cooperative Milk Marketing Federation (GCMMF). A Rs 22 billion enterprise. 2.12 million farmers. 10,441 milk collection centers in villages. 14 district unions and their plants. Over 5,00,000 retail outlets across India. Delivers products worth Rs 6 Crore daily.

BIRTH OF AMUL
Group of farmers from Anand village formed Kaira District Milk Cooperative Union in December, 1946. Objective was to free themselves from intermediaries and gain easy access in market for due returns Later joined hands with other milk cooperatives to form GCMMF

KEY AREA OF FOCUS

To Match demand and supply which needs heavy investment and simultaneous development of suppliers and consumer. To engage professional managers and technocrats for effective management of the network commercial viability.

MAJOR STRATEGIES BEHIND

Retaining focus on farmers while developing a hierarchical network of the cooperatives. Maintaining vast supply chain spread from small suppliers to large fragmented market. Bigger role played by distributors, retailers and 3PL providers in supply chain. Managing low consumer prices supported by a low cost system. Ensuring consistency in product mix with its basic activities of providing milk at affordable price.

AMUL AS AN UMBRELLA BRAND

1. 2. 3. 4. 5. 6. 7. 8. Amul Milk Bread Spreads Cheese UHT Milk Beverage Range Ice Cream Paneer Dahi
9. Milk Powders 10. Nutramul 11. Mithai Range 12. Mithai Mate 13. Chocolates 14. Fresh Cream 15. Pouch Butter Milk 16. Ghee

DISTRIBUTION NETWORK
5,00,000 retail outlets with over 3500 distributors across India. 47 depots with dry and cold warehouse. Transaction is done on advanced demand draft basis instead of cheque system. Maintains JIT inventory levels to help improve the dealers ROI.

MANAGING THE SUPPLY CHAIN NETWORK

Effective coordination between GCMMF and unions to achieve desired degree of efficiency and cost control. Unions get assured buy-ins with the approval by GCMMFs board. Federation handles the distribution of end products and coordination with the retailers and dealers. Monitoring milk collection contractors, animal feed supply etc are some activities handled by the federation.

MANAGING 3PL PROVIDERS

3PL providers activities include Logistics of milk collection Distribution of dairy products Sale of end products through dealers and retailers Provision of animal feed and veterinary services

Major number of 3rd parties are unorganized and are not professionally managed.

ESTABLISHING BEST PRACTIES

Adapted global best practices across all elements of network to generate source of competitive advantage. Regular improvement programmes are conducted with consistently high implementation rate. Implementation of Kaizen to improve the quality of milk.

TECHNOLOGY AND E-INITIATIVES

HACCP certification and automation is being introduced gradually in processing and packaging areas. Active promotion in developments in embryo transfer and cattle breeding . Employment of internet technologies to B2C commerce and implementation of GIS. Amul Cyber Store.