AMUL has developed a robust supply chain network to manage the collection, processing, and distribution of milk across India. It collects milk daily from over 2 million small farmers and delivers packaged dairy products worth Rs. 6 crore to over 500,000 retail outlets nationwide. AMUL's supply chain is coordinated through a hierarchical network of cooperatives which stretches from farmers to fragmented retail markets. It manages this complex network efficiently through coordination mechanisms like interlocking control between entities and supplier enhancement programs to maximize farmer benefits while ensuring competitive prices.