Strategic partnership between Amul and IBM in 2009 which provided end-to-end Digitalized Supply Chain Management.

1. Amul’s Partnership with IBM
An Indian Dairy based cooperative society(Amul) in collaboration with a Multinational
Technology Cooperation(IBM)
Prepared By: Shriya Rai

2. Amul
 Formed in 1946, Amul is an Indian dairy cooperative society
based at Anand, in the Indian state of Gujarat.
 It is a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Limited which today is jointly owned
by 3.6 million milk producers in Gujarat, and the apex body
of 13 district Milk Unions, spread across 13,000 villages of
Gujarat.
 Under the guidance and leadership of Tribuvandas Patel
and Dr. Vergheese Kurien, Amul has flourished and
achieved milestones.

3. Crisis = Change
in Consumer
behavior
Even though milk was considered as essential product during
Lockdown, there was loss in demand of dairy products because
of the closure of businesses such as Hotels, Catering and Food
restaurants. These businesses accounted for 20% of the
revenue for dairy sector
Many companies cut down their Logistics and production as
they saw decrease in the demand
Amid Pandemic Amul was not only able to minimize its
losses but also increase its revenue by 698 Crore Rupees
 Launched 33 new products
 Procured additional 35 lakhs Lit of milk every day
 Paid 800 Crore Rupees extra to the rural milk producers

4.  Although there was no consumption from restaurants,
there was a high demand from households.
 This was because of many reasons:
 People became health conscious and started preparing
food at home
 Packaged milk was preferred above loose milk
 New dishes were tried out to fill the boredom at home.
"Homemade food trend"
 Because of the change in consumer behavior, demand
for other milk products: cheese, cottage cheese,
condensed milk increased and as a result Amul was
operating with 115% capacity
Crisis = Change
in Consumer
behavior

5. Vast Supply chain of Amul
3.6 million
farmers (+)
18,700
societies
5000 milk
tankers
200 chilling
stations
10k
distributors
1 million
retailers

6. Strategic
partnership
between Amul
and IBM in 2009
IBM developed full-fledged system to track every small
detail of operation that was being carried out in the supply
chain of Amul.
“End to End Digitalization”
The system helped Amul to determine minor details such
as:
 How many plants were operating at full capacity ?
 How many trucks are engaged and in which areas ?
 When and how many trucks are at idle capacity so that
idle trucks could be diverted to shift the workload
 This helped Amul because frozen food and ice
cream plants were not operational and hence
resources of these plants : trucks, labor, storage
were diverted and utilized in milk supply chain
management

7. Strategic
partnership
between Amul
and IBM in 2009
IBM developed a private cloud with:
 Data center infrastructure
 Disaster recovery infrastructure (Automatic Backup)
Whenever there are issues the disaster recovery kicks in,
ensuring zero down time.
This was proven during the recent lockdown when Amul
was able to divert idle resources overnight and ensure
steady supply of dairy products.

9. References:
 https://economictimes.indiatimes.com/partnerships/how-technology-helped-amul-
create-supply-chain-resilience-during-covid-
19/articleshow/79492213.cms?from=mdr
 https://www.businesstoday.in/latest/corporate/story/how-integrated-it-
infrastructure-helped-amul-steer-through-coronavirus-impact-259870-2020-06-01
 How Amul beat its competition & made 39,200 Cr during Lockdown?