AMUL's 3-tier business model involves dairy cooperative societies, district cooperative unions, and the state cooperative federation (GCMMF). AMUL uses a two-channel network for procurement from villages and distribution to retailers. For procurement, milk is transported from villages to manufacturing units via bicycles and trucks. For distribution, various sized trucks move products from plants to depots to wholesalers to retailers. AMUL implements ERP for inventory management across the supply chain. It also utilizes reverse logistics and third-party logistics providers.

1. PRESENTED BY:
GOVIND MENON
ABHINAV MATHUR
KANIK VIJAY

2. AGENDA
• Introduction
• The SUCCESS Factors
• The 3-Tier Business Model
• Channel Network
• Mode of Transport
• Inventory Management
• Reverse Logistics
• 3PL & 4PL
• Co-ordination & Conflict Management
• Conclusion

3. INTRODUCTION
• Anand Milk Union Limited is the short form for what we know as
AMUL.
• Formed in 1946, the brand AMUL is managed by GCMMF( Gujarat
Cooperative Milk Marketing Federation)
• Dr. Varghese Kurien, former Chairman of GCMMF- the man behind
the success of AMUL.
• The brand name “AMUL” is derived from the Sanskrit word “AMULYA”
meaning “PRICELESS”.
• AMUL has made INDIA the largest producer of milk and milk products
in the world.

4. The SUCCESS Factors
• Low Cost Strategy
• Easy Availability
• Strong Distribution of Network
• Diversification of Products
• Promotional Strategies

5. The 3-Tier Business Model
Dairy Cooperative Society
District Cooperative Milk Producer's Union
State Cooperative Milk Federation

6. CHANNEL NETWORK
• 2 types of channel networks which supports its procurement &
distribution aspects, they are:
1. Procurement channel (Upstream Flow)
1. Distribution channel (Downstream Flow)

7. UPSTREAM FLOW
MANUFACTURING UNIT
VILLAGE CORPORATE SOCIETY
(VCS)
VILLAGE

8. DOWNSTREAM FLOW
MANUFACTURIN
G UNIT
DEPOT
WHOLESALE
DISTRIBUTOR
RETAILER

9. Mode of TRANSPORT
For UPSTREAM :
1. Village VCS
2. VCS MANUFACTURING
UNITS
BICYCLE/FOOT
SPECIAL TRUCKS

10. Contd…
For DOWNSTREAM:
9 & 8 Mt TRUCKS
MANUFACTURING DEPOT
UNIT
INSULATED 3 & 5 Mt TRUCKS
DEPOT WHOLESALERS
AUTO RICKSHAW, RICKSHAW,
BICYCLE
WHOLESALERS RETAILERS

11. INVENTORY MANAGEMENT
ENTERPRISE RESOURCE PLANNING
1. The company has implemented an ERP Program in collaboration
with TCS Ltd.
2. The data right from the procurement till the fill delivery to the
retailers is fed into the system.
3. This enables the channel members to best utilize the resources and
maintain inventory in an efficient manner.

12. REVERSE LOGISTICS
MILK CHURN
 from dairy to VCS
POUCH MILK TRAY
from retailer to dairy
BOTTLE
from retailer to dairy
DAMAGED PRODUCTS
from customer to retailer then to dairy

13. 3PL & 4PL

14. WHAT IS 3PL & 4PL?
• Third-party logistics (3PL) service providers are companies who
provide a range of logistics activities for their clients. These are
companies independent from the buyers and sellers but takes over
some of their logistics function.
• Fourth-party logistics (4PL) service providers are companies who
manage and direct the activities of 3PLs, serving as an integrator.

15. 3PL
• The job of milk collection has been outsourced to third-party logistics
service suppliers (3PLs).
• Over 3000 Automatic Milk Collection System Units (AMCUS) have
been installed at village societies. AMCUS helps in collecting 6 million
(2006-07) liters of milk from 3 million members approximately.
• AMCUS also helps monitoring and managing collection cycle,
reduction in pilferages, reduced human errors, on-the-spot payments
to farmers, wastage reduction, transparency of operation and
operational integration.

16. Co-ordination
• Large number of organisations and entities in the supply chain
• GCMMF and the unions play a major role in achieving control
• Interlocking control - The board is drawn from the heads of all the unions, and
the boards of the unions comprise of farmers elected through village societies
• The federation handles the distribution of end products and coordination with
retailers and the dealers.
• The unions coordinate the supply side activities.

17. Conflict Management
• Ownership of Assets
• Stocking Issues
• Replacement products
• Packaging
• Margins
• Credit Policy

18. CONCLUSION
• From the above information it is quite evident that distribution
channel plays a vital role in its positioning in the market.
• AMUL has shown in all the ways that why it is one of the leading
company in the market for dairy products.
• This accomplishment of AMUL is widely credited to their Distribution
Channel, which gives them a competitive advantage over their
competitors.
• AMUL has paved way for others to follow , to have a SUCCESSFUL
Distribution Network.

19. THANK YOU!!!