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Amul distri
This presentation discusses Amul's distribution strategy. It provides details on Amul's products, supply chain management, and downstream and upstream distribution channels. Amul transports products from manufacturing units to depots to wholesalers to retailers. It also discusses the selection criteria for channel members, motivation strategies, evaluation methods, potential conflicts, and ways to increase cooperation among members. The presentation concludes with observations on Amul's strengths and suggestions for improving promotional activities and margins.
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Amul distri
- 1. A Presentation on Distribution Strategy Mehul Rasadiya K.K. Parekh Institute of Management Studies (Amreli)
- 2. THE COMPANY • Amul means priceless in Sanskrit • Since 1946 • Market leaders for Amul butter • Turnover of 25 billion • Amul is a symbol for • High quality at reasonable prices • Genesis of a vast co-operative network • Triumph of indigenous technology • Farmer’s organization
- 3. THE PRODUCTS • Bread spreads • Cheese ranges • UHT milk • Milk powders • Fresh milk • Ice creams • Chocolates • Mithaiee range
- 4. SCM and MarketLogistics • Implementation of an ERP program as low as Rs. 3 corers in collaboration with TCS ltd. • Synchronized working and best possible utilization of the available resources • Maintains details regarding the inventory management.
- 5. THE CHANNEL NETWORK •Distribution channel- downstream flow • Procurement channel- upstream flow
- 7. DOWNSTREAM FLOW • Firstleg • Manufacturing units to company depots using 9 and 18 MT trucks • Frozen food-below 18C • Dairy wet-0-4C • Second leg • Depots to WDs • Transport through insulated 3 and 5 MT TATA 407’s • Third leg • WDs to retailers • Transport through rickshaws according to the beat plan
- 9. UPSTREAM FLOW • Milkis taken to VCS by farmers by bicycles • Transportation of milk from the co- operatives to the manufacturing units through trucks equipped with tankers equipped to carry milk
- 10. Selection Criteria ofthe Channel Members • Authentication by way of identity • Proof of solvency-details of the bankers • Safety of inventory by getting the company stock insured • Proper storage space in forms of refrigerators • The company requires the dealers to furnish any Advertising & Sales initiative undertaken by them on behalf of the company
- 11. Selection Criteria Conti… •Details of delivery vehicles • Competent salesman • Details of the product kept of other companies have to be provided • Dealers of the company must carry a good reputation • Market coverage of distributors need to be defined
- 12. Motivation Of Channel Members • Distributors – Margins – Trade marketing – Total quality management – Vision and mission statemnts – Amul yatras
- 13. Motivation Cont… • Retailers – Trade schemes – Glow boards – Schedule of the salesman – Infrastructure of facilitation
- 14. Evaluation of Channel Members • Beat plan • Cumulative performance • Target versus achievement • Other criteria
- 15. Conflicts among Channel Members • Ownership of assets • Stocking issues • Replacement of products • Credit policy • Packaging • Replenishment • Margins
- 16. Cooperation Among Channel Members • Amul quality circles • Pilot salesman scheme • Scheduling of sales • Agreement defining rights
- 17. Observations • Strength in its procurement • Leverage on the relationship • Strength in transport channel • No promotional schemes undertaken • Non profit driven organization • Push strategy
- 18. Comments and Suggestions • Amul should go in for exclusive outlets • Push carts • Trade promotions • Home delivery • Increase margins • Additional salesman on field
- 19.