Supply Chain Mgmt

1. A
PRESENTATION
ON
SUPPLY CHAIN MANAGEMENT
By: Swapnil Lazarus

2. AMUL
 Type - Cooperative
 Industry - Dairy
 Founded - 1946
 Key people - Dr. Verghese kurien
 Revenue - $ 2.15 billions (2010-2011)
 Employee - Marketing arm: 735
Milk producers: 3.03 million

3. KEY FACTS
 AMUL means priceless in Sanskrit “Amoolya”
 Brand name managed by an apex cooperation organization –GCMMF
 World’s biggest vegetarian cheese brand
 World’s largest pouched milk brand
 Largest food brand in India
 Spurred the white revolution in India
 Accreditation with 9001 and HACCP certification by QAS, Australia.

4. GCMMF: AN OVERVIEW
 Members
 13 district cooperative milk producers Union
 No. of Producer Members
 3.03 million
 No. of Village Societies
 15,712
 Total Milk handling capacity
 13.67 million liters per day

5. CONT…
 Milk collection (Total - 2010-11): 3.45 billion liters.
 Milk collection (Daily Average 2010-11): 9.2 million liters
 Milk Drying Capacity: 647 Mts. per day
 Cattle feed manufacturing Capacity: 3690 Mts. per day
 Sales turnover(2010-11): Rs 9774 Crores

6. Area Covered
o During the year 2010-11, 1000 new Amul Parlors have been
added, taking the total strength to 6000
o We have already started 30 super distributors across 8 states,
covering 520 smaller towns. In the year 2011-12, we plan to
increase the number of super distributors to 150 and cover as
many as 3000 small towns.

7. AMUL PRODUCT’S DIVERSIFICATION
Dairy
• Cheese Products
• Bread Spreads Non-Dairy
• Milk Drinks & Desserts
• Instant Food
• Fresh Milk
• Snacks
• Veg. Oils

8. PRODUCTS
 Bread Spreads
 Milk Drinks
 Powder Milk
 Fresh Milk
 Cheese
 For Cooking
 Chocolate

9. MARKET SHARE

10. PRODUCT SHARE
 Amul butter - 86%
 Ice cream - 36%
 Chocolate - 10%
 Ghee - 20%
 Skimmed milk powder - 40%

11. LOGISTICS
I. Logistics in collection –
 9.2 million liters of milk per day
 From about 15.712 separate village cooperative societies.
 Approximately 3.03 million milk producing member.
II. Logistic in coordination of –
 Storing the milk.
 Processing the milk.
 Distributing the milk.

12. CONT….
III. Supplier logistics –
 Weighing the milk.
 Determining of fat content.
 Calculation of the purchase price.

13. AMUL PATTERN
A three tier cooperative structure:
 Dairy cooperative society at village level
 Milk union at district level
 Milk federation at state level

14. VILLAGE DAIRY COOPERATIVE SOCIETY (VDCS)
 Collection of surplus milk & payment based on quality &
quantity.
 Providing support services to the members.
 Selling liquid milk for local consumers of the village.
 Supplying milk to the District Milk Union

15. DISTRICT COOPERATIVE MILK PRODUCERS’ UNION
(MILK UNION)
 Procurement of milk from the Village Dairy Societies of
the District.
 Arranging transportation of raw milk from the VDCS to the
Milk Union.
 Providing input services to the producers.
 Conducting training on Cooperative development

16. STATE COOPERATIVE MILK FEDERATION (FEDERATION)
 Marketing of milk & milk products
 Establish distribution network
 Arranging transportation from the Milk Unions to the market.
 Creating & maintaining a brand
 Providing Technical Inputs, management support & advisory services.
 Decide on the products to be manufactured at various Milk Unions
(product-mix)
 Conduct long-term Milk Production, Procurement, Processing &
Marketing Planning
 Conflict Resolution & keeping the entire structure intact

17. DISTRIBUTION PROCESS
Company
Dealer Franchisee
Wholesaler
Retailer
Shopkeeper
Consumers

18. COLD STORAGE NETWORK
 Chillers in proximity of villages
 Prompt transport to district facilities for further dispatch to
consumers/ processing units.
 Chilled trucks to transport processed products
 Delivery to local chillers by insulated rail tankers and chilled
trucks.
 Refrigerators and freezers with retailers and departmental stores
to retain freshness.

19. DISTRIBUTION
 GCMMF coordinated with various unions to get a regular supply of milk
and dairy products.
 The processed milk and dairy products were procured from district dairy
unions and distributed through third party distributors.
 To ensure quality and timely deliveries, GCMMF and the district unions
had several mechanisms in place.
 The unions monitored the supplies of milk and the distribution of
finished products.

20. DIRECT RETAILING
 Amul has recently entered into direct retailing through
"Amul Utterly Delicious" parlors created in major
cities.
 Amul has plans to create a large chain of such outlets
to be managed by franchisees throughout the country.
 More than 2000 parlor with a turnover of 200 crore.

21. MISSION 2020
Very ambitious future plan –
 Turnover of 27000 crore.(three fold increase in the group turn
over.)
 Milk production 33.1 million liter/day.
 Milk drying capacity 200 mt/day

22. THANK YOU………..