amul project

1. DISTRIBUTION
NETWORK OF AMUL

2. PRESENTED BY:-
• CHANDAN SINHA BBA 4598/08
BIRLA INSTITUTE OF TECHNOLOGY(NOIDA)

3. INTRODUCTION
• AMUL means "priceless" in Sanskrit.
• Amul products have been in use in millions of
homes since 1946.
• Turnover of Rs. 67113 million in 2008-09.
• Today Amul is a symbol of high-quality products
sold at reasonable prices and of the genesis of a
vast co-operative network.

4. PRODUCTS
• Bread spreads.
• Cheese range.
• Mithai range.
• Milk range.
• Pure ghee.
• Infant milk .
• Curd products
• Ice creams.

5. Facts about AMUL.
• Milk is procured twice a day from 2 million
producers from Gujarat alone.
• 6 manufacturing units all over India.
• The payment is made under twelve hours of
procurement
• There are 13328 village cooperative societies
• There are 3600 wholesale distributors in the
country
• 47 depots

6. Facts about AMULcontd
• There are approx. 4,50,000 retailers spread all over India
• The milk procured per day is 8.4 million liters.
• Where the total capacity of operation is 11.22 million liters
per day.
• The peak processing till date has been 6 million liters per
day
• These co operative societies are bound to supply there
produce only to GCMMF(GUJARAT CO-OPERATIVE MILK
MARKETING FEDERATION).

7. CHANNEL NETWORK.
Amul has got 2 types of channel networks
which supports its procurement and
distribution aspect, they are:-
1. Procurement channel(upstream flow).
2. Distribution channel(downstream flow).

8. UPSTREAM FLOW.
MANUFACTURING UNIT
VILLAGE CORPORATE
SOCIETY(VCS)
VILLAGE

9. DOWNSTREAM FLOW.
DEPOT
MANUFACTURING
UNIT.
WHOLESALE
DISTRIBUTOR.
RETAILER.

10. MODE OF TRANSPORT
FOR UPSTREAM
1. VILLAGE VCS.
2. VCS MANUFACTURING
UNITS.
BICYCLE /FOOT
SPECIAL TRUCKS

11. MODE OF TRANSPORTCONTD
FOR DOWNSTREAM.
1. MANUFACTURING DEPOT
UNIT.
2. DEPOT W.S
3. W.S RETAILER
9 & 18 MT TRUCKS.
INSULATED 3 & 5 MT
TRUCK(TATA 407).
AUTO RICKSHAW,
RICKSHAW, BICYCLE.

12. INVENTORY
• Enterprise resource planning: the company at
has implemented an ERP program as low as Rs. 3
corers in collaboration with TCS ltd. The company
uses it, the data right from the procurement from
the farmers till the delivery of goods to the
retailers is fed into the system. The software
enabling the channel members to use for the
synchronized working and best possible
utilization of the available resources maintains
details regarding the inventory management.

13. CONTROL OF CHANNEL
MEMBERS.
AMUL takes into consideration a host of factors
for controlling the channel members.
1. Proper authentication of the channel members.
2. Proper storage facility.
3. Insurance of stock.
4. Details of all the distributors and dealers vehicle
to be kept with company.
5. Good reputation of the channel members.

14. CONTROL OF CHANNEL
MEMBERS contd
6. The company requires the dealers to furnish
Advertising & Sales initiative undertaken by
them on behalf of the company.
7. Market coverage by the distributors needs to
be defined which includes details of
Geographic coverage & Outlets per market
area

15. CO-OPERATION AMONG
CHANNEL MEMBERS.
• Amul quality circles.
• Pilot salesmen scheme.
• Scheduling of sales.
• Agreement defining rights.

16. CONFLICTS AMONG
CHANNEL MEMBERS.
• Ownership of assets.
• Stocking issues.
• Replacement of products.
• Replenishment.
• Packaging.
• Margins.
• Credit policy.

17. OBSERVATION
• STRENGTH IN PROCURMENT.
• LOYAL COOPERATIVES.
• TRANSPORT CHANNEL.
• HIGH SALES VOLUME AND LOW MARGIN.
• SAME DISTRIBUTION CHANNEL FOR ALL
PRODUCT.

18. CONCLUSION
• From the following information it is quite evident that
distribution channel network of any company plays a
vital role in its position in the market.
• AMUL has shown in all the way that why it is one of the
leading company in the market for dairy product.
• This accomplishment of AMUL is widely credited to
their well thought Distribution channel, which gives
them a competitive advantage over other companies.
• AMUL has paved way for others to follow, to have a
successful Distribution network.