A PRESENTATION ONSUPPLY CHAIN MANAGEMENT By: Swapnil Lazarus
AMUL Type - Cooperative Industry - Dairy Founded - 1946 Key people - Dr. Verghese kurien Revenue - $ 2.15 billions (2010-2011) Employee - Marketing arm: 735 Milk producers: 3.03 million
KEY FACTS AMUL means priceless in Sanskrit “Amoolya” Brand name managed by an apex cooperation organization –GCMMF World’s biggest vegetarian cheese brand World’s largest pouched milk brand Largest food brand in India Spurred the white revolution in India Accreditation with 9001 and HACCP certification by QAS, Australia.
GCMMF: AN OVERVIEW Members 13 district cooperative milk producers Union No. of Producer Members 3.03 million No. of Village Societies 15,712 Total Milk handling capacity 13.67 million liters per day
CONT… Milk collection (Total - 2010-11): 3.45 billion liters. Milk collection (Daily Average 2010-11): 9.2 million liters Milk Drying Capacity: 647 Mts. per day Cattle feed manufacturing Capacity: 3690 Mts. per day Sales turnover(2010-11): Rs 9774 Crores
Area Coveredo During the year 2010-11, 1000 new Amul Parlors have been added, taking the total strength to 6000o We have already started 30 super distributors across 8 states, covering 520 smaller towns. In the year 2011-12, we plan to increase the number of super distributors to 150 and cover as many as 3000 small towns.
LOGISTICSI. Logistics in collection – 9.2 million liters of milk per day From about 15.712 separate village cooperative societies. Approximately 3.03 million milk producing member.II. Logistic in coordination of – Storing the milk. Processing the milk. Distributing the milk.
CONT….III. Supplier logistics – Weighing the milk. Determining of fat content. Calculation of the purchase price.
AMUL PATTERNA three tier cooperative structure: Dairy cooperative society at village level Milk union at district level Milk federation at state level
VILLAGE DAIRY COOPERATIVE SOCIETY (VDCS) Collection of surplus milk & payment based on quality & quantity. Providing support services to the members. Selling liquid milk for local consumers of the village. Supplying milk to the District Milk Union
DISTRICT COOPERATIVE MILK PRODUCERS’ UNION(MILK UNION) Procurement of milk from the Village Dairy Societies of the District. Arranging transportation of raw milk from the VDCS to the Milk Union. Providing input services to the producers. Conducting training on Cooperative development
STATE COOPERATIVE MILK FEDERATION (FEDERATION) Marketing of milk & milk products Establish distribution network Arranging transportation from the Milk Unions to the market. Creating & maintaining a brand Providing Technical Inputs, management support & advisory services. Decide on the products to be manufactured at various Milk Unions (product-mix) Conduct long-term Milk Production, Procurement, Processing & Marketing Planning Conflict Resolution & keeping the entire structure intact
DISTRIBUTION PROCESSCompany Dealer FranchiseeWholesalerRetailerShopkeeperConsumers
COLD STORAGE NETWORK Chillers in proximity of villages Prompt transport to district facilities for further dispatch to consumers/ processing units. Chilled trucks to transport processed products Delivery to local chillers by insulated rail tankers and chilled 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.
DIRECT RETAILING Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlors created in major cities. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country. More than 2000 parlor with a turnover of 200 crore.
MISSION 2020Very 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