AMUL
AMUL
AMUL
Akash Jain
Roll No. 06
Indian Dairy Industry
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
9
Chocolate
MARKET SHARE
10
AMUL Model
11
12
13
Supply Chain
Management
14
Products are
transported
Pasteurized to the
milk is various
transported wholesale
to the and retail
Chilled milk is stores
regional milk
transported
federation
from the VCC
factories
to the ditrict
where dairy
union where
Dairy products are
the milk is
farmers get pasteurized manufacture
milk to the d and
VCC where branded
milk is
cooled
using
16
Logistics Process
I. Logistics in collection
18
THE CHANNEL NETWORK
19
Procurement
The VCSs provide the farmers with good quality animal feed, fodder,
and other services like veterinary first aid.
20
PROCUREMENT CHANNEL
(UPSTREAM)
On an average around thousand farmers come to sell milk at their local co-
operative milk collection center.
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.
22
Cold Storage Network
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. 24
Reverse logistics
Amul has entered into direct retailing through "Amul Utterly Delicious" parlors
created in major cities.
26
EVOLUTION of IT
Started fifty years back by AMUL by eliminating the middlemen and
bringing the producers closer to the consumers.
Amul has start implementation of ERP in phases.
The project was named as Enterprise wise integrated application system [EIAS]
Automatic milk collection system units(AMCUS) at village society were installed in the first
phase to automate milk production logistics
AMCUS has facilities to capture member information, milk fat content, volume collected,
and amount payable to each member electronically
Data analysis software utilization for milk production estimation and increasing
27
productivity
Benefits of IT
Processing of 10 Million payments daily, amounting to transactions worth USD 3.78
million in cash.
Huge reduction in processing time for effecting payments to the farmers from a week to
couple of minute.
Cont
Movement of 5000 trucks to 200 dairy processing plants twice a day in a most
optimum manner.
Amul exports products worth around US$ 25 million to countries in West Asia,
Africa and USA.
29
Quality Management
Have a commitment to achieve quality in basically six priority areas
Cleanliness of the dairy cooperative societies,
Management Practices
Self-leadership Development
Contd..
TQM movement has also been extended to the wholesale dealers by
organizing workshops for them
S W O T
Strengths
Largest food brand in
India
Vast resources
High Quality, Low
Price Advanced
Technical
World's Largest Equipment
manpower
Pouched Milk Brand
capacity
Highly Diverse Increasing
Product Mix purchase power
Robust Distribution
Network
S
Enhanced Milk
Production capacity
Weaknesses Risks of highly
complex supply
chain system Perishability of
products
Strong
dependency on Erratic power
weak supply
infrastructure
Lack of proper
Alliance with 3rd Infrastructure;
parties who do warehousing,
not belong to the Trained
organized sector manpower
Indian Roads
specially for
logistics facility
W
Increase the
Opportunities Penetration in
international
markets
innovations in
product
development,
packaging and
O presentation
IT support
Threats Milk vendors,
the un-
organized sector
Milk
Threat of adulteration
Competitors
Low profit
Still margin to
competition Retailer, risk of
from MNCs in switching brand
butter
Growing price
of milk and milk
products
Ban on export
T of milk powder
PORTERS 5 FORCES
Competitive Rivalry - HIGH Bargaining Power of Suppliers -
New brands are coming up each day and the Bargaining LOW
Power of
major factor on which they play in this Suppliers Farmers, rural households and
industry is prices LOW small cooperatives sell at the
going market rate.
The big giants and the
Threat of Substitutes - LOW government control the sector
Essential item for and regulate prices
beverages like tea, coffee
Traditional consumption Threat of Competitive Threat of
New
habits make milk a favorite Substitutes Rivalry Entrants
Threat of New Entrants -
There is no other offering LOW HIGH
HIGH HIGH
that can substitute milk. Not many entry barriers
Many local players have
come up with their own
Bargaining Power of Consumers - LOW
local brands
The prices of packaged and branded
New company just has
milk and milk products is fixed Bargaining to follow the defined
Bargain with the local milk vendors in Power of
Consumers
standards and it can
unorganized sector and local shops
LOW
come up with its
selling milk products
offerings in this sector
References
http://www.ijser.org/researchpaper/A-CASE-STUDY-OF-AMUL-COOPERATIVE-IN-I
NDIA-IN-RELATION-TO-ORGANIZATIONAL-DESIGN-AND-OPERATIONAL-EFFICIENCY.pdf
http://
economictimes.indiatimes.com/industry/cons-products/food/amul-clocks-quantum
-leap-of-187-in-6-years/articleshow/52802217.cms
https://www.trendingtopmost.com/worlds-popular-list-top-10/2017-2018-2019-2020
-2021/world/largest-milk-producing-countries-world
/
http://www.amul.com/m/about-us
http://www.amul.com/m/gcmmf
http://www.amuldairy.com/index.php/cd-programmes/quality-movement
http://
economictimes.indiatimes.com/industry/cons-products/food/amazon-to-sell-amul
-products-in-us/articleshow/55602997.cms
THANK YOU