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Supply Chain Management of Amul (Supply Chain Management)


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[ detailed report at: ] Presentation on "Supply Chain Management of Amul" by Shabbir Akhtar (PGPM 10, Globsyn Business School - Global Campus) for the subject Supply Chain Management

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Supply Chain Management of Amul (Supply Chain Management)

  1. 1. Supply Chain Management of
  2. 2. History
  3. 3. History
  4. 4. Over The YearsIn 1965 The National Dairy Development Board (NDDB) was established at Anand to replicate the Amul model throughout the country
  5. 5. Over The YearsGujarat Cooperative Milk Marketing Federation (GCMMF) was established in 1973, as Kaira Cooperative recognized the benefits of a marketing federation, when district unions multiplied
  6. 6. Over The YearsGCMMF commenced marketing on April 1, 1974 under the single brand name of Amul
  7. 7. Over The Years In 2012, Amul posted sales of Rs 11,670 crore for the year ended March 2012,almost 55% more than Nestle Indias Rs 7,541-crore sales, its nearest competitor
  8. 8. Over The YearsAmul now wants to go global to join Nestle, Danone, Lactalis and Fonterra as one of the worlds largest milk product makers
  9. 9. Supply Chain MemberFarmers VCS GCMMF Unions Distributors Retailers End Consumers Flow of Materials and Information at Amul
  10. 10. Organization Structure 1st Tier -- Primary village Co-operative Society 2nd Tier -- District Union 3rd Tier -- The State Federation
  11. 11. Organization Structure Market 22 StateGCMMF in State Milk Sales Revenue Sales Revenue Fedns. in Gujarat Federation India Milk and Milk Products 177 District17 District Unions in DistrictUnions in Bonus Addl. Rural Health India Price Milk Unions Cattle Feed Schemes Gujarat Difference Vet. & Animal Dividend Profit Profit Husbandry 1,44,246 16,117 on Shares Services VDCs in VDCs in Village Dairy India Gujarat Cooperative3.18 million Societies 15.0 million producers producers in Gujarat in India Member Producers
  12. 12. Strategic Initiatives for SCM
  13. 13. Strategic Initiatives for SCM
  14. 14. Strategic Initiatives
  15. 15. Products for ‘all segments’ at ‘affordable prices’
  16. 16. Advertising Campaigns that people connect to
  17. 17. Cold Chain Network for storage and distribution
  18. 18. E-initiatives underway at both ends of supply chain Online ordering allowed by Amul
  19. 19. Distribution Network
  20. 20. Mechanisms to coordinate Distribution Network• Inter-locking Control• Coordination Agency: Unique Role of Federation• Supplier Enhancement and Network servicing• Amul Yatra Program
  21. 21. Best Practices to Improve SCM• Branding and Advertising of the product• Codification of raw material in an easy to understand manner• Payment to the milk suppliers on time and whenever they need it• Quality checks at every level• Educating suppliers about the things that improve quality• Business process ownership throughout the supply chain
  22. 22. Best Practices to Improve SCM• Using technology to connect farmers with veterinary doctors when they need it• Breeding and cross-breeding of animals to produce better milk• Make product information available to the consumers through• Information Technology integration and widening the reach of IT at village level• Active customer feedback and incorporation in product improvement
  23. 23. Best Practices to Improve SCM• Active customer feedback for improving product- lines• Active involvement of GCMMF employees in all activities of the member unions• Closer and deeper relationships with the business associates, i.e. wholesalers• Implementing globally proven philosophies such as Kaizen, Hoshin, Kanri, etc.• Implementing small group activities (SGA) to select and understand the problem and come up with counter measures
  24. 24. Best Practices to Improve SCM• Completely in tune with the ground reality an enquiry is initiated on the organizational climate• Have recognized “change” as an essential factor governing business needs• Recognized the importance of housekeeping and implemented the Japanese System or ‘5S’ principles• Self-managing leadership course for all federation and GCMMF employees by Brahmakumaris at Mount Abu• Strong committed leadership which is directly involved in everything that is happening
  25. 25. IT Initiatives by Amul to Support SCM
  26. 26. Automatic Milk Collection System Units (AMCUS)
  27. 27. Enterprise-wide Integrated Application System
  28. 28. Geographic Information System
  29. 29. Dairy Information System Kiosk (DISK)
  30. 30. Online for distributers, along with, which is for consumers
  31. 31. Thank you
  32. 32. Questions? Shabbir AkhtarPGPM 10, School of Marketing, Globsyn Business School – Global Campus Email: | Twitter: @strategian