Presentation On Supply Chain Management of AMUL
Presentation On Supply Chain Management of AMUL
Presentation On Supply Chain Management of AMUL
OF
AMUL
Presented by: Karishma Bhavnani Nikunj Gajara Chandan Pahelwani Kinjal Pokar
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India is worlds largest producer of dairy products by volume. It is accounting more than 13% of worlds total milk production. Also India is worlds largest consumer of dairy products, consuming almost all of its own milk production. Indian dairy market is growing at an annual rate of 7%.
CONT
Interests from private sector investors have facilitated construction of larger dairies through partnering with dairy processors. Indian dairy industry is different from other dairy producing countries as India places its emphasis on both cattle and buffalo milk.
India nevertheless faces a milk supply gap due to increasing demand from a growing middle class population.
Advent of organized retail channels Increased availability of branded, packaged milk Reduced role of middlemen, mainly the milk vendors
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Distribution Lack of superior cold-storage transport Distribution wastage due to improper storage No enforcement of HACCP principles Lack of supporting information systems Database maintained by Milk Producers Organizations in developed countries
AMUL
Milk Producers
52.8 million
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KEY FACTS
AMUL means priceless in Sanskrit Amoolya Brand name managed organization GCMMF by an apex cooperation
GCMMF
GCMMF - An Overview
Year of Establishment Members 1973
17 District Cooperative Milk Producers' Unions (16 Members & 1 Nominal Members) 3.18 Million
16,117 13.67 Million litres per day
AVAILIBILITY
4.
SERVICE
Dairy
Cheese Products Bread Spreads Milk Drinks & Desserts Fresh Milk
Non-Dairy
Instant Food Snacks Veg. Oils
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PRODUCTS
For Cooking
Chocolate
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MARKET SHARE
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AMUL MODEL
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LOGISTICS PROCESS
I.
Logistics in collection 6 million liters of milk per day From about 10,600 separate village cooperative societies. Approximately 2.8 million milk producing member.
II.
Logistics in coordination of
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CONT
III.
Supplier logistics
Weighing the milk. Determining of fat content. Calculation of the purchase price.
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EVOLUTION OF IT
The evolution of IT in AMUL was took place in the guidance of DR.B.M Vyas. The milk collection center at village cooperative societies, were first automated. Data analysis software production estimation productivity. utilization for milk and increasing
VATS network between all the level of distribution network and GCMMF.
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AUTOMATIC
SYSTEM
BENEFITS OF IT
Processing of 10 Million payments daily, amounting to transactions worth USD 3.78 million in cash. Radical changes in business processes - eliminating middlemen.
CONT
Movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner. Practicing just in time supply chain management with six sigma accuracy.
There is improvement in quality of milk in term of acidity and sour milk Milk union records show 2% reduction in the amount of the sour milk received from the union Improved microbiological quality of upcoming raw milk in the form of methylene blue reduction This gives better shelf life to the product
Distribution Process
Company Wholesaler Retailer Consumers
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Dealer Franchisee
Procurement Distribution
flow
channel- downstream
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PROCUREMENT
comprised
Increasing milk collection, procuring milk, and transporting it to the chilling and processing units twice a day. The VCSs provided the farmers with good quality animal feed, fodder, and other services like veterinary first aid.
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On an average around thousand farmers come to sell milk at their local co-operative milk collection center. Each farmer has been given a plastic card for identification. At the milk collection counter, the farmer drops the card into a box and the identification number is transmitted to a personal computer attached to the machine. The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine.
CONT
Both these details are recorded in the PC. The computer then calculates the amount due to farmer on the basis of the fat content. The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.
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in proximity of villages
Prompt
transport to district facilities for further dispatch to consumers/ processing units. trucks to transport processed products
Chilled
Delivery
to local chillers by insulated rail tankers and chilled trucks. and freezers with retailers and 32 departmental stores to retain freshness.
Refrigerators
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 33 distribution of finished products.
DOWNSTREAM FLOW
First leg Manufacturing units to company depots using 9 and 18 MT trucks Frozen food below -18C Dairy wet 0-4C Second leg Depots to WDs Transport through insulated 3 and 5 MT TATA 407s Third leg WDs to retailers Transport through rickshaws
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REVERSE LOGISTICS
MILK CHURN from dairy to VCS POUCH MILK TRAY from retailer to dairy
BOTTLE from retailer to dairy DAMAGED PRODUCTS from customer to retailer then to dairy
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DIRECT RETAILING
Amul
has recently entered into direct retailing through "Amul Utterly Delicious" parlors created in major cities. has plans to create a large chain of such outlets to be managed by franchisees throughout the country. than 2000 parlor with a turnover of Rs. 200 crores.
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Amul
More
THANK
YOU
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