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    AMUL's SUPPLY CHAIN MANAGEMENT PRACTICES

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    gargi yadav
    Amul collects 447,000 liters of milk daily from 2.12 million farmers. It converts this milk into branded, packaged products and distributes goods worth Rs. 6 crore to over 500,000 retail outlets across India. Amul maintains a low-cost supply chain model that allows it to provide affordable prices to consumers while still providing remunerative returns to farmers. It has the largest cold chain network in India to prevent spoilage as it transports and processes milk. Amul's cooperative business model coordinates the interests of farmers, processors, and consumers.

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    AMUL's SUPPLY CHAIN MANAGEMENT PRACTICES

    Uploaded by

    gargi yadav
    59 views9 pages
    Amul collects 447,000 liters of milk daily from 2.12 million farmers. It converts this milk into branded, packaged products and distributes goods worth Rs. 6 crore to over 500,000 retail outlets across India. Amul maintains a low-cost supply chain model that allows it to provide affordable prices to consumers while still providing remunerative returns to farmers. It has the largest cold chain network in India to prevent spoilage as it transports and processes milk. Amul's cooperative business model coordinates the interests of farmers, processors, and consumers.

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    AMUL’s SUPPLY CHAIN MANAGEMENT PRACTICES

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    Amul collects 447,000 liters of milk daily from 2.12 million farmers. It converts this milk into branded, packaged products and distributes goods worth Rs. 6 crore to over 500,000 retail outlets across India. Amul maintains a low-cost supply chain model that allows it to provide affordable prices to consumers while still providing remunerative returns to farmers. It has the largest cold chain network in India to prevent spoilage as it transports and processes milk. Amul's cooperative business model coordinates the interests of farmers, processors, and consumers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    59 views9 pages

    AMUL's SUPPLY CHAIN MANAGEMENT PRACTICES

    Uploaded by

    gargi yadav
    Amul collects 447,000 liters of milk daily from 2.12 million farmers. It converts this milk into branded, packaged products and distributes goods worth Rs. 6 crore to over 500,000 retail outlets across India. Amul maintains a low-cost supply chain model that allows it to provide affordable prices to consumers while still providing remunerative returns to farmers. It has the largest cold chain network in India to prevent spoilage as it transports and processes milk. Amul's cooperative business model coordinates the interests of farmers, processors, and consumers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    AMUL’s SUPPLY CHAIN

    MANAGEMENT PRACTICES
     AMUL is a dairy cooperative in the western India that has been
    primarily responsible, through its innovative practices, for India
    to become the world’s largest milk producer
     Amul collects 447,000 litres of milk from 2.12 million

    Introduction farmers , converts the milk into branded, packaged products,


    and delivers goods worth Rs 6 crore (Rs 60 million) to over
    500,000 retail outlets across the country
     Amul’s position is driven by low consumer prices supported by
    a low cost system of providing milk at a basic, affordable price.
    GUJARAT  GCMMF markets and manages the Amul brand.
    COOPERATIVE  It is a state level apex body of milk cooperatives in Gujarat
    MILK  provide remunerative returns to the farmers and also serve the
    MARKETING interest of consumers by providing quality products
    FEDERATION
     Amul products are available in over 500,000 retail outlets
    across India through its network of over 3,500 distributors
     GCMMF transacts on an advance demand draft basis from its
    wholesale dealers instead of the cheque system adopted by

    The distribution other major FMCG companies.

    network  Wholesale dealers carry inventory that is just adequate to take


    care of the transit time from the branch warehouse to their
    premises
     This just-in-time inventory strategy improves dealers' return on
    investment (ROI)
     AMUL has the largest cold chain network in India (i.e. 18000
    refrigerators) as compared to any other company.
     The chemical components of milk are water, SNF and solids.
    Milk is very perishable product so it has to be consumed within

    Largest Cold 24 hours

    Chain  In order to avoid wastage AMUL converts the milk in to SNF


    and milk solids by evaporating the water, which comprises up
    to 60-70% of milk contents
     The distribution channel right from the producer to the
    consumer is well organized.
     The network explicitly includes secondary services to the
    farmer-suppliers
     Several of the entities in the network are organized as
    THE cooperatives

    BUSINESS  The distribution network, on the other hand, is quite


    reasonable with access to rural areas of the country.
    MODEL  A majority of the suppliers are small or marginal farmers who
    are often illiterate, poor, and with liquidity problems as they
    lack direct access to financial institutions
     GCMMF takes responsibility for coordinating with the
    distributors to assure adequate and timely supply of products
     It also works with the Unions in determining product mix,
    product allocations and in developing production plans.
    Third Party  The Unions, on the other hand, coordinate collection logistics
    Logistics and support services to the member-farmers.

    Service  Unions adopted a number of strategies to develop the supply of


    milk and assure steady growth.
     For the short term, the procurement prices were set so as to
    provide fair and reasonable return.
     Aware of the liquidity problems, cash payments for the milk
    supply was made with minimum of delay ie making payments
    upon the receipt of milk
     Its objective is to ensure that all milk that the farmers produce
    gets sold in the market either as milk or as value added

    Coordination products and to ensure that milk is made available to an


    increasingly large section of the society at affordable prices.
    for  Their objective is to ensure that producers get maximum
    Competitivenes benefit and to resolve all their problems. They manage the

    s: procurement of milk that comes via trucks & tankers from the
    VSs. They negotiate annual contracts with truckers, ensure
    availability of trucks for procurement,

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