1. Logistics Both Inbound Logistics and outbound logistics are selected based on tender method 750 direct dealers are covered under 32 routes by outbound logistics. Deposit is collected from the dealer. Trip sheet and Indents system’s are used to cross check the delivery and time of delivery.

2. Distribution network Distribution network consists of 3 channels- 1. Direct dealer -750, tender issued for 2 years, an initial deposit of Rs.10,000 is collected. If turnover increases the deposit amount is increased. Milk is transported to these direct dealer though the outbound logistics arrangement. An additional amount of 30 paisa/litre is charged to the dealers. (Rs. 15.44/litre+30 paisa) They sell milk through parlors, direct outlets, footpath distribution and home delivery. 2. Transport cum distributors – Operate within the city and collect 8000 liters/day. 3. Wholesale dealers - some large buyers who collect 2000litres/day.

3. Related Issues Collection Ordering System Control system Breakdowns Promotions

4. Problems Faced Distribution issues – Vehicle breakdown in remote areas like MM hills Political influence in route planning Poor control on price Demand forecasting – No scientific method used.