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Distribution system


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Distribution system

  2. 2. Distribution Process <ul><li>Company </li></ul><ul><li>Dealer Franchisee </li></ul><ul><li>Wholesaler </li></ul><ul><li>Retailer </li></ul><ul><li>Shopkeeper </li></ul><ul><li>Consumers </li></ul>
  3. 3. Amul Dairy <ul><li>Started in December 1946 </li></ul><ul><li>Covers 2.12 million farmers, 70,000 villages and over 200 districts </li></ul><ul><li>14 district level plants </li></ul><ul><li>Total annual turnover of $500 million </li></ul><ul><li>Collects 447,000 litres of milk daily </li></ul><ul><li>Available over 500,000 retail outlets across India </li></ul><ul><li>Network of over 3,500 distributor </li></ul>
  4. 4. Problems faced <ul><li>Indirect connection between Producers and Consumers </li></ul><ul><li>Could not forecast productivity accurately and timely </li></ul><ul><li>No direct connectivity between zonal, regional, member dairies and head office </li></ul>
  5. 5. Key Initiatives <ul><li>In 1994, decided on IT for competitive edge </li></ul><ul><li>Studied its existing functions and operations and formulated an IT plan. </li></ul><ul><li>Aligned the Information strategy with business strategy. </li></ul><ul><li>Re-designed and re-organized the existing software applications. </li></ul><ul><li>Output of one system should be input of another system or vice-versa. </li></ul>
  6. 6. Role of Information Technology <ul><li>Automatic Milk Collection System Units (AMCUS) </li></ul><ul><li>CEO of Amul Mr. B.M. Vyas said ”Amul is not a food company ,It is an IT company in the food business.” </li></ul><ul><li>Initially AMCUS was installed free of cost to convince farmers </li></ul>
  7. 7. Role of IT (contd.) <ul><li>Enterprise-wide integrated application system (EIAS). </li></ul><ul><li>Covers market planning, advertising and promotion, distribution network planning, stock control, sales and accounting, budgetary control, quality control management and co-operative service management. </li></ul><ul><li>Connected its zonal offices, regional offices and members dairies through VSATs. </li></ul><ul><li>Each Amul office was connected by e-mail and all send a daily report on sales & inventory to main system. </li></ul>
  8. 8. Role of IT (contd.) <ul><li>Geographic Information System (GIS) </li></ul><ul><li>Helps in getting zone wise data used for sales and distribution planning. </li></ul><ul><li>Includes farmer-member census and animal census data. </li></ul><ul><li>Helps in monitoring veterinary health. </li></ul>
  9. 9. Amul’s IT Roadmap <ul><li>Uses AMCUS for milk collection. </li></ul><ul><li>Implemented a customized ERP system which is used in conjunction with GIS </li></ul><ul><li>Uses data analysis software for forecasting milk production and increasing productivity. </li></ul><ul><li>Has connected all zonal, regional and member dairies through VSAT. </li></ul><ul><li>One of the first five organizations to have web presence. </li></ul><ul><li>Has made IT education compulsory for all its employees. </li></ul>
  10. 10. Future plans <ul><li>Plans to introduce Internet banking services and ATMs </li></ul><ul><li>Upgrading plastic cards to smart cards to withdraw cash from ATMs. </li></ul>
  11. 11. Thank you