A complete information about VALUE CHAIN of AMUL. How they do there activities (i.e both primary and support activities in AMUL)

1. PRESENTATION ON:-
“Value chain of AMUL”

2. WHAT IS VALUE CHAIN?
• A value chain is a set of activities that a firm
operating in a specific industry performs in
order to deliver a valuable product or service
for the market
• The concept comes through business
management and was first described by
Michel Porter in his 1985

3. Value focus on:
• Innovation
• Research and Development
• Product Testing
• Marketing
• Social Trend Analysis
• Economic Conditions

4. TYPES OF FIRM ACTIVITIES
1.PRIMARY ACTIVITIES:-
primary activities are involved in the creation,
sales and transfer of products (including after-
sales service)
 Inbound logistics
 Operations
 Outbound logistics
 Sales and marketing
 Service and support

5. 2. SUPPORT ACTIVITIES:-
support activities that merely support the
primary activities.
Firm infrastructure
Human resource management
Technology development
procurement

6. VALUE CHAIN OF AMUL

7. AMUL (Anand Milk Union Limited)
“profit goes to farmers and
not the middle man”

8. INTRODUCTION
• Formed in 1946, a dairy co-operative movement in
India.
• A brand name managed by GCMMF ltd.
• Jointly owned by 3.6 million milk producers in Gujarat.
• Spurred the white revolution in India.
• Now a billion dollar brand, overseas market such as
Mauritius, UAE, USA, Bangladesh.
• Involved with rural development and not just profit
making.

9. VALUE CHAIN OF AMUL
March 22, 2015
SUPPORT
ACTIVITIES
Firm Infrastructure- Head, zonal and overseas offices
Human Resource Management- Leadership & open culture
Technology Development- Integration from farmers to customers; B2B
Procurement
Inbound
Logistics:
Production
by co-
operative
and union
members
Operations
Milk
processing,
Packing
Outbound
Logistics:
Village
Diary Co-op
society,
Milk unions
Sales and
Marketing:
Distributors,
Retailers
Service and
Support:
After sales
services

10. SUPPORT ACTIVITIES OF AMUL

11. 1. FIRM INFRASTRUCTURE
Quality management
• TQM model (Total Quality Management)-
improvement in quality of milk in term of acidity and
sour milk.
• Milk union records show 2% reduction in the amount
of the sour milk received from the union.
• Improved microbiological quality of upcoming raw
milk to give better shelf life of the product.
• Regular meetings to discuss various quality concerns.

12. Financial management
• Weekly forecast of funds in which requirement of
each department is mentioned.
• Driven primarily by its desire to be self reliant and
thus depend on internally generated resources
for funding its growth and development.
• Amul’s financial strategy may thus
characterized by two element
i. Retention of surplus to fund growth
and development.
i. Limited/ no credit i.e all transactions
are essentially cash only.

13. 2.HUMAN RESOURCE MANAGEMENT
• All policies have been designed keeping the
betterment of farmers in mind.
• Training for transformational leadership.
• Training for famers emphasizing on need of
good health care of cattle.
• Medical Assistance Scheme to employees,
transport facility, meals at subsidized rates.

14. 3. TECHNOLOGY DEVELOPMENT
• AMCUS- automatic milk collection system units to automatic milk
production logistics and to capture member information, fat content,
volume collected and amount payable to each member electronically.
• Application and utilization of GIS(Geographic Information System)
• DISK(Dairy Info system
Kiosk) provided by IIM
Ahmedabad to facilitate
data analysis and decision
support in improving milk
collection.
• TCS was hired by Amul for
EIAS- enterprise wise
integrated application systems
for implementation for ERP

15. 4.PROCUREMENT
• Milk collection(total 2016-2017) 729 million
liters.
• Milk collection(daily average 2016-2017)
2million liters
• Source 2.79 million farmers
• Hierarchical system
• Gujrat- biggest sourcing point of milk.

16. PRIMARY ACTIVITIES OF AMUL

17. 1.INBOUND LOGISTICS
• Procurement of 13 million lt’s of milk per day.
• Cold storage network.
• Chillers in proximity of
villages.
• Chilled trucks.
• Insulated rail tankers.
• 24 cold storage in various locations across the
country developed by Amul
itself.

18. 2.OPERATIONS
• Quality check-Amul has it’s own quality check
mechanisms-Quality Assurance Laboratory.
• Tetra Pak Group-for packaging. Milk packaged
here need not be boiled and is ready for
consumption.

19. 3.OUTBOUND LOGISTICS
• Distribution channel ensures that product
reaches every nook and corner of the country.
• Creation of cold chain to transport these products
and store it closest to the market with the
required cooling infrastructure.
• Amul products are available in over
8,00,000 retail outlets across India
through its network of over 5,000
distributors.

20. 4.MARKETING AND SALES
• Gujrat cooperative Milk
Marketing Federation.
• Partners with Ogilvy and Mather
for thoughtful advertisements.
• Amul has one of the longest
running add campaign in the world
with Amul girl as their mascot.
• Advertising and sales promotions to be simple,
fresh and innovative and emotion based adds on
current affairs.

22. 5.SERVICES
• Census of all retail outlets(over 5lacs) to
evaluate customer perceptions and
distribution efficacy of their network.
• Amul relief trust.
• Customer feedback for quality management.