DISTRIBUTION SYSTEM By:- Pranav Anand Dhirendra Rajput

Distribution Process Company Dealer Franchisee Wholesaler Retailer Shopkeeper Consumers

Company

Dealer Franchisee

Wholesaler

Retailer

Shopkeeper

Consumers

Amul Dairy Started in December 1946 Covers 2.12 million farmers, 70,000 villages and over 200 districts 14 district level plants Total annual turnover of $500 million Collects 447,000 litres of milk daily Available over 500,000 retail outlets across India Network of over 3,500 distributor

Started in December 1946

Covers 2.12 million farmers, 70,000 villages and over 200 districts

14 district level plants

Total annual turnover of $500 million

Collects 447,000 litres of milk daily

Available over 500,000 retail outlets across India

Network of over 3,500 distributor

Problems faced Indirect connection between Producers and Consumers Could not forecast productivity accurately and timely No direct connectivity between zonal, regional, member dairies and head office

Indirect connection between Producers and Consumers

Could not forecast productivity accurately and timely

No direct connectivity between zonal, regional, member dairies and head office

Key Initiatives In 1994, decided on IT for competitive edge Studied its existing functions and operations and formulated an IT plan. Aligned the Information strategy with business strategy. Re-designed and re-organized the existing software applications. Output of one system should be input of another system or vice-versa.

In 1994, decided on IT for competitive edge

Studied its existing functions and operations and formulated an IT plan.

Aligned the Information strategy with business strategy.

Re-designed and re-organized the existing software applications.

Output of one system should be input of another system or vice-versa.

Role of Information Technology Automatic Milk Collection System Units (AMCUS) CEO of Amul Mr. B.M. Vyas said ”Amul is not a food company ,It is an IT company in the food business.” Initially AMCUS was installed free of cost to convince farmers

Automatic Milk Collection System Units (AMCUS)

CEO of Amul Mr. B.M. Vyas said ”Amul is not a food company ,It is an IT company in the food business.”

Initially AMCUS was installed free of cost to convince farmers

Role of IT (contd.) Enterprise-wide integrated application system (EIAS). Covers market planning, advertising and promotion, distribution network planning, stock control, sales and accounting, budgetary control, quality control management and co-operative service management. Connected its zonal offices, regional offices and members dairies through VSATs. Each Amul office was connected by e-mail and all send a daily report on sales & inventory to main system.

Enterprise-wide integrated application system (EIAS).

Covers market planning, advertising and promotion, distribution network planning, stock control, sales and accounting, budgetary control, quality control management and co-operative service management.

Connected its zonal offices, regional offices and members dairies through VSATs.

Each Amul office was connected by e-mail and all send a daily report on sales & inventory to main system.

Role of IT (contd.) Geographic Information System (GIS) Helps in getting zone wise data used for sales and distribution planning. Includes farmer-member census and animal census data. Helps in monitoring veterinary health.

Geographic Information System (GIS)

Helps in getting zone wise data used for sales and distribution planning.

Includes farmer-member census and animal census data.

Helps in monitoring veterinary health.

Amul’s IT Roadmap Uses AMCUS for milk collection. Implemented a customized ERP system which is used in conjunction with GIS Uses data analysis software for forecasting milk production and increasing productivity. Has connected all zonal, regional and member dairies through VSAT. One of the first five organizations to have web presence. Has made IT education compulsory for all its employees.

Uses AMCUS for milk collection.

Implemented a customized ERP system which is used in conjunction with GIS

Uses data analysis software for forecasting milk production and increasing productivity.

Has connected all zonal, regional and member dairies through VSAT.

One of the first five organizations to have web presence.

Has made IT education compulsory for all its employees.

Future plans Plans to introduce Internet banking services and ATMs Upgrading plastic cards to smart cards to withdraw cash from ATMs.

Plans to introduce Internet banking services and ATMs

Upgrading plastic cards to smart cards to withdraw cash from ATMs.

Thank you