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

1. Supply Chain Management
of

2. History

3. History

4. Over The Years
In 1965 The National Dairy Development Board (NDDB) was established
at Anand to replicate the Amul model throughout the country

5. Over The Years
Gujarat Cooperative Milk Marketing Federation (GCMMF) was established in 1973,
as Kaira Cooperative recognized the benefits of a marketing federation,
when district unions multiplied

6. Over The Years
GCMMF commenced marketing on April 1, 1974 under the single brand name of Amul

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 India's Rs 7,541-crore sales, its nearest competitor

8. Over The Years
Amul now wants to go global to join Nestle, Danone, Lactalis and Fonterra
as one of the world's largest milk product makers

9. Supply Chain
Member
Farmers VCS GCMMF
Unions
Distributors
Retailers
End Consumers
Flow of Materials and Information at Amul

10. Organization Structure
1st Tier -- Primary village Co-operative Society
2nd Tier -- District Union
3rd Tier -- The State Federation

11. Organization Structure
Market
22 State
GCMMF in State Milk
Sales Revenue Sales Revenue Fedns. in
Gujarat Federation
India
Milk and
Milk Products
177 District
17 District Unions in
District
Unions 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 Cooperative
3.18 million Societies 15.0 million
producers producers
in Gujarat in India
Member Producers

12. Strategic Initiatives for SCM

13. Strategic Initiatives for SCM

14. Strategic Initiatives

15. Products for ‘all segments’ at ‘affordable prices’

16. Advertising Campaigns that people connect to

17. Cold Chain Network for storage and distribution

18. E-initiatives underway at both ends of supply chain
Online ordering allowed by Amul

19. Distribution Network

20. Mechanisms to coordinate Distribution Network
• Inter-locking Control
• Coordination Agency:
Unique Role of
Federation
• Supplier Enhancement
and Network servicing
• Amul Yatra Program

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. 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 Amul.com
• Information Technology integration and widening
the reach of IT at village level
• Active customer feedback and incorporation in
product improvement

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. 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. IT Initiatives by Amul to Support SCM

26. Automatic Milk Collection System Units (AMCUS)

27. Enterprise-wide Integrated Application System

28. Geographic Information System

29. Dairy Information System Kiosk (DISK)

30. Online Initiatives
www.amulb2b.com for distributers, along with www.amul.com, which is for consumers

31. Thank you

32. Questions?
Shabbir Akhtar
PGPM 10, School of Marketing, Globsyn Business School – Global Campus
Email: shabbir.pm10k@globsynbchool.com | Twitter: @strategian