The document summarizes Amul's supply chain management. Amul is a dairy cooperative managed by the Gujarat Cooperative Milk Marketing Federation. It collects 8.4 million liters of milk daily from 2.2 million producers through 10,675 village cooperatives. Milk is collected twice daily, tested for fat content, and producers are electronically paid within minutes. Amul has a cold storage and distribution network to process and deliver milk and dairy products to consumers through distributors and retailers nationwide. Its goal is to triple revenues by 2020 through export expansion and opening more Amul parlors.
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The document summarizes Amul's supply chain management. Amul is a dairy cooperative managed by the Gujarat Cooperative Milk Marketing Federation. It collects 8.4 million liters of milk daily from 2.2 million producers through 10,675 village cooperatives. Milk is collected twice daily, tested for fat content, and producers are electronically paid within minutes. Amul has a cold storage and distribution network to process and deliver milk and dairy products to consumers through distributors and retailers nationwide. Its goal is to triple revenues by 2020 through export expansion and opening more Amul parlors.
The document summarizes Amul's supply chain management. Amul is a dairy cooperative managed by the Gujarat Cooperative Milk Marketing Federation. It collects 8.4 million liters of milk daily from 2.2 million producers through 10,675 village cooperatives. Milk is collected twice daily, tested for fat content, and producers are electronically paid within minutes. Amul has a cold storage and distribution network to process and deliver milk and dairy products to consumers through distributors and retailers nationwide. Its goal is to triple revenues by 2020 through export expansion and opening more Amul parlors.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
The document summarizes Amul's supply chain management. Amul is a dairy cooperative managed by the Gujarat Cooperative Milk Marketing Federation. It collects 8.4 million liters of milk daily from 2.2 million producers through 10,675 village cooperatives. Milk is collected twice daily, tested for fat content, and producers are electronically paid within minutes. Amul has a cold storage and distribution network to process and deliver milk and dairy products to consumers through distributors and retailers nationwide. Its goal is to triple revenues by 2020 through export expansion and opening more Amul parlors.
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SUPPLY CHAIN MANAGEMENT
GROUP MEMBERS Arumugam Bharath Pachaiyappaan Vivek
AMUL Type Industry Founded Key people Revenue
Cooperative Dairy 1946 Dr. Verghese kurien INR 70 billion
Brand name managed by an apex cooperation organization GCMMF Amul initiated the dairy co-operative movement in India and an apex cooperative organization called Gujarat Co-operative Milk Marketing Federation(GCMMF) was formed. Largest food brand in India. Accreditation with 9001 and HACCP certification by QAS, Australia.
Cattle feed manufacturing Capacity: 3500 Mts. per day
VALUE CHAIN PROCESS
LOGISTICS ACTIVITIES Logistics in collection I. II. III.
8.4 million liters of milk per day From about 10,675 separate village cooperative societies. 2.2 million milk producing member.
Supplier logistics I. II. III.
Weighing the milk. Determining of fat content. Calculation of the purchase price.
CONT. Logistics in coordination of
Storing the milk. Processing the milk. Distributing the milk.
MILK COLLECTION UNIT
The milk collection center at village cooperative societies are automated. Automatic milk collection system units(AMCUS) at village society were installed to automate milk production logistics. AMCUS facilities to capture member information, milk fat content, volume collected, and amount payable to each member electronically.
SHIFT PROCESS The
company zeroed in on ERP as means to keep pace with dynamically changing business environment. TCS was hired to guide them in its implementation. The project was named as Enterprise Wise Integrated Application System (EIAS). Amul also connected its zonal offices, regional offices and members dairies through VSATs.
REAPING RETURNS Radical changes in business processes - eliminating middlemen . Improved delivery mechanisms and transparency of business operations. Due to this process, AMUL is able to collect 8.4 million litres of milk per day. Huge reduction in processing time for effecting payments to the farmers from a week to couple of minute. Processing of 10 Million payments daily, amounting to transactions worth USD 3.78 million in cash.
CONT.. Movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner. Practicing just in time supply chain management with six sigma accuracy. Online order placements of Amuls products on the web. Distributors can place their orders on the website. Amul exports products worth around US$ 25 million to countries in West Asia, Africa and USA.
GCMMFS SUPPLY CHAIN
THE CHANNEL NETWORK
Procurement Distribution
channel- upstream flow
channel- downstream flow
PROCUREMENT
Activities at the village level comprised developing and servicing the VCSs. Increasing milk collection, procuring milk, and transporting it to the chilling and processing units twice a day. The VCSs provided the farmers with good quality animal feed, fodder, and other services like veterinary first aid.
PROCUREMENT CHANNEL On an average around thousand farmers come to sell milk at their local co-operative milk collection center. Each farmer has been given a plastic card for identification. At the milk collection counter, the farmer drops the card into a box and the identification number is transmitted to a personal computer attached to the machine. The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine. Both these details are recorded in the PC. The computer then calculates the amount due to farmer on the basis of the fat content. The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.
COLD STORAGE NETWORK
Chillers Prompt
in proximity of villages
transport to district facilities for further dispatch to consumers/ processing units.
Chilled
trucks to transport processed products
to local chillers by insulated rail tankers and chilled
Delivery
trucks.
Refrigerators
and freezers with retailers and departmental stores to retain freshness.
DISTRIBUTION
GCMMF coordinated with various unions to get a regular supply of milk and dairy products. The processed milk and dairy products were procured from district dairy unions and distributed through third party distributors. To ensure quality and timely deliveries, GCMMF and the district unions had several mechanisms in place. The unions monitored the supplies of milk and the distribution of finished products.
DOWNSTREAM FLOW First
leg
Manufacturing units to company depots using 9 and 18 MT trucks Frozen food-below 18C Dairy wet-0-4C Second
leg
Depots to WDs Transport through insulated 3 and 5 MT TATA 407s
Third
leg
WDs to retailers Transport through rickshaws according to the beat plan
REVERSE LOGISTICS MILK CHURN from dairy to VCS POUCH MILK TRAY from retailer to dairy BOTTLE from retailer to dairy DAMAGED PRODUCTS from customer to retailer then to dairy
EXPANSION PLAN
Tie up with the Wal Mart Export to more countries.
Plan to open more than 10000 Amul parlor.
MISSION 2020 Very ambitious future plan
Turnover of 27000 crore.(three fold increase in the group turn over.) Milk production 33.1 million liter/day. Milk drying capacity 200 mt/day
AMUL (RECENTLY IN NEWS)
Milk via milk train. Tie up with Adani Logistics.
50 wagon each capacity 24k liter.
Initial transport cost was 40 crores ,reduce it to half.
