Professional Documents
Culture Documents
Submitted by
(SACHIN RAJU DHAWALE)
Roll NO: 208
Submitted to
UNIVERSITY OF MUMBAI
MASTER OF COMMERCE
(MANAGEMENT)
Semester- IV
(2018–19)
Project Guidance by
Professor: Prof HIMANSHU LAPASHIA
Submitted by
SACHIN RAJU DHAWALE
Roll NO: 208
Submitted to,
UNIVERSITY OF MUMBAI
MASTER OF COMMERCE
(MANAGEMENT)
Semester- IV
(2018–19)
Project Guidance by
Professor: Prof HIMANSHU LAPASHIA
Certificate
This is to certify that SACHIN RAJU DHAWALE has worked and duly completed his
Project Work for the degree of Master in Commerce under the Faculty of Commerce in
the subject of (LOGISTICS AND SUPPLY CHAIN MANAGEMENT) and his project is
entitled, “LOGISTICS AND SUPPLY CHAIN MANAGEMENT OF AMUL DAIRY”
under my supervision.
I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any
University.
It is his own work and facts reported by her/his personal findings and investigations.
Co-ordinator: Principal:
Declaration by learner
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
Signature:
Certified by
Signature:
Acknowledgment
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, Dr. Ajay M. Bhamare for providing the necessary facilities
I take this opportunity to thank our Coordinator Dr.SushmaPatil, for her moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Prof
HIMANSHU LAPASHIA whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.
1 INTRODUCTION
2 OBJECTIVES
3 RESEARCH METHODOLOGY
4 OBSERVATIONS
5 STRATEGIES OF AMUL
10 BENEFITS OF E-SCM
11 FUTURE PLANS
12 FINDINGS
13 CONCLUSION
14 RECOMMENDATIONS
15 REFERENCE
16 ANNEXTURE
INTRODUCTION
To Minimize the time of Loading and Unloading of Crates from the truck. Calculate distance of
from plant to milk collection center to avoid deteriotion of milk by long time contamination.
Ensure the hygienic and quality of Milk to have clean, safe and nutritive milk for further
processing of it. To distribute the quality product to final end without any deteriotion. Ensuring
of Milk product to reach in Unseasonal Condition to fulfill the demand of end user
1.2 Objective:
. To Calculate the Loading and Unloading Time of Crates from the Truck.
To Calculate the Kilometers from the CHANDOLI Planttothe Drop Point of the
Distributors
To Analyze the Truck sheet entry of the raw chilled milk received from village dairy co-
1. Supply Chain Strategicies are the critical backbone to Business Organizations today
Strategy
3. Inventory control and inventory visibility are two very critical elements in any operations
for these are the cost drivers and directly impact the bottom lines on the balance sheet
5. In a global scenario, the finished goods inventory is held at many locations and
6. Effective control of inventory and visibility of inventory gains importance as a key factor
Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective, forward and backward (reverse) flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet customer's
delight. A professional working in the field of logistics management is called a logistician.
Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the
increasing complexity of supplying one's business with materials, and shipping out products in
an increasingly globalize supply chain, calling for experts in the field who are called Supply
Chain Logisticians. This can be defined as having the right item in the right quantity at the right
time at the right place for the right price and to the right target customers (consumer); and it is
the science of process having its presence in all sectors of the industry. The goal of logistics
work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
Logistics is Concerned with getting (or transmitting) the products and services where they are
needed or when they are desired. It is difficult to accomplish any marketing or manufacturing
without logistical support. I t involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging. The operating responsibility of logistics is the
geographical repositioning of raw materials, work in process, and finished inventories where
required at the lowest cost possible.
The Oxford English Dictionary defines logistics as: "The branch of military science having to
do with procuring, maintaining and transporting material, personnel and facilities"
The American Council Of Logistics Management defines logistics as" the process of
planning, implementing and controlling the efficient and effective flow, and storage of goods,
services and related information from the point of consumption for the Purpose of conforming to
customer requirements."
Introduction
• The Kaira District Co-operative Milk Producers Union Limited, popularly known as
Amul Dairy is a US $ 500 million turnover institution.
• Formed in the year 1946 Amul is the leading food brand in India.
• Amul initiated the dairy co-operative movement in India and formed an apex co-
operative organization called Gujarat co-operative Milk Marketing Federation (GCMMF)
and today 70,000 villages and 200 districts in India are part of it.
• GCMMF markets its products through 50 sales offices throughout India and distribution
is done through a network of 4,000 stockiest who in turn supply 500,000 retail outlets.
• Amul is the largest food brand in India with an annual turnover of US $1068 million
(2007-08)
• Currently Amul has 3.11 million producer members with milk collection average of 6.04
million litres/day.
• Amul is the largest producer of milk and milk products in the world.
Research Methodology
Primary data:
Primary data was collected by conducting survey in selected area for study. The project was
survey type, so immense importance was given to constructing questionnaires, interviewing the
respondent (distributors, society chairman and farmers), tabulation of data and statically
techniques to analyze data
Secondary data
Secondary data was collected for reputed statistical website, procurement officer and sales team
to get some ideas about the project and ted perception of the situation
Area of operation
Year of
starting TALUKA
2013 KHED
2014 - 2015 SHIRUR
2015 – 2016 AMBEGOAN
Strategy of Amul
AMUL
Strategy
Supply
Collection Chain
Chain
Storing
Weighing the
the milk
milk
Calculation of the
Distributing
purchase price
the milk
Amul’s strategy is broadly divided into two components:
The first one is the collection chain and the second one is the Supply chain. The collection chain
starts from weighing the milk to determination of the fat content in the milk to finally calculation
of the purchase price. While the supply chain starts from storing the milk to processing the milk
to finally distributing the milk.
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. The distinctive
features of this paradigm involves managing a large decentralized network of suppliers and
producers, simultaneous development of markets and suppliers, lean and efficient supply chain,
and breakthrough leadership.
Every day Amul collects 447,000 litres of milk from 2.12 million 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.
To implement their vision while retaining their focus on farmers, a hierarchical network of
cooperatives was developed, this today forms the robust supply chain behind GCMMF’s
endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented
markets.
Management of this network is made more complex by the fact that GCMMF is directly
responsible only for a small part of the chain, with a number of third party players (distributors,
retailers and logistics support providers) playing large roles. Managing this supply chain
efficiently is critical as GCMMF's competitive position is driven by low consumer prices
supported by a low cost system of providing milk at a basic, affordable price.
Amul products are available in over 500,000 retail outlets across India through its network of
over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of
the entire range of products.
GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the
cheque system adopted by other major FMCG companies. This practice is consistent with
GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also
minimizes dumping.
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). All GCMMF branches engage in route scheduling and have dedicated
vehicle operations.
From the very beginning, in the early 1950s, AMUL adopted the network as the basic model for
long-term growth.
• The network explicitly includes secondary services to the farmer-suppliers.
• Several of the entities in the network are organized as cooperatives linked in a
hierarchical fashion.
Customers: In comparison with developed economies, the market for dairy products in
India is still in an evolutionary stage with tremendous potential for high value products such as
ice cream, cheese etc. The distribution network, on the other hand, is quite reasonable with
access to rural areas of the country. Traditional methods practiced in western economies are not
adequate to realize the market potential and alternative approaches are necessary to tap this
market.
Suppliers: 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. Again,
traditional market mechanisms are not adequate to assure sustenance and growth of these
suppliers.
Third Party Logistics Services: In addition to the weaknesses in the basic infrastructure,
logistics and transportation services are typically not professionally managed, with little regard
for quality and service. In addition to outbound logistics, 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. The Unions, on the other hand, coordinate collection logistics and support services to the
member-farmers. In what follows we elaborate on these aspects in more detail and provide a
rationale for the model and strategies adopted by GCMMF.
Simultaneous Development of Suppliers and Customers: From the very early stages of the
formation of AMUL, the cooperative realized that sustained growth for the long-term was
contingent on matching supply and demand. The member-suppliers were typically small and
marginal farmers with severe liquidity problems, illiterate and untrained. AMUL and other
cooperative Unions adopted a number of strategies to develop the supply of milk and assure
steady growth. First, for the short term, the procurement prices were set so as to provide fair and
reasonable return. Second, aware of the liquidity problems, cash payments for the milk supply
was made with minimum of delay. This practice continues today with many village societies
making payments upon the receipt of milk. For the long-term, the Unions followed a multi-
pronged strategy of education and support. For example, only part of the surplus generated by
the Unions is paid to the members in the form of dividends
Coordination is one of the key reasons for the success of operations involving such an
Extensive network of producers and distributors at GCMMF. Some interesting mechanisms exist
for coordinating the supply chain at GCMMF.
These mechanisms are:
Inter-locking Control
The objective for developing such an inter-locking control mechanism is to ensure that the
Interest of the farmer is always kept at the top of the agenda through its representatives who
Constitute the Boards of different entities that comprise the supply chain. This form of direct
Representation also ensures that professional managers and farmers work together as a team to
Strengthen the cooperative. This helps in coordinating decisions across different entities as well
as speeding both the flow of information to the respective constituents and decisions.
Its objective is to ensure that all milk that the farmers produce gets sold in the market either as
milk or as value added products and to ensure that milk is made available to increasingly large
sections of the society at affordable prices
Their objective is to ensure that producers get maximum benefit and to resolve all their
problems. They manage the procurement of milk that comes via trucks & tankers from the Vs.
They negotiate annual contracts with truckers, ensure availability of trucks for procurement,
establish truck routes, monitor truck movement and prevent stealing of milk while it is being
transported
GCMMF’S SUPPLY CHAIN
E- Supply Chain Management Of Amul
• E-SCM may be described as the integrated management approach for planning and
controlling the flow of materials from suppliers to the end users using internet
technologies.
• E-SCM refers to the complex network of relationship that organizations maintain with
trading partner to source, manufacture and deliver the products.
E-SCM Diagram of Amul
Working of E-SCM
• Amul has installed over 3000 automatic milk collection system units (AMCUS) at village
societies to capture member information, milk fat content and amount payable to each
member.
• Computer calculate amount due to the farmer on the basis of the fat content
• The value of the milk is printed out on the slip and handed over to the farmer ,who
collects the payment from the adjacent window
• Thus with the help of it farmer gets the payment within the minutes
• On the logistic more than 5000 trucks move milk from the villages to 200 dairy
processing plants twice a day according to a carefully planned scheduled
• Every day Amul collects 7 million liters of milk from 2.6 million farmers (many
illiterate), converts the milk into branded, packaged products, and delivers goods to over
500,000 retail outlets across the country
• ERP software named as enterprise wide integrated application system covers a operation
like planning advertisement and promotion and distribution network planning.
Each Amul office are connected via internet and all of them send daily reports on sales and
inventory to the main system at Anand,
Supply & Distribution
• At the supply end a computerized database has been setup of all suppliers & their cattle.
• At the distribution end stockists have been provided with basic computer skills. Amul
experts assist them
1) AMUL GOLD
2) AMUL TAAZA
3) AMUL COW MILK
8) AMUL DAIRY
Strong Initiatives in E-commerce
• Amul has linked distributors to the network & also incorporated web pages of top
retailers on their website
• Practices just in time supply chain management with six sigma accuracy
Benefits of E-SCM
• Platform independent
• Return on investment
• It has open internet application architecture which allows for Rapid deployment &
scalability combining unlimited users in real time environment
• Introduce Internet Banking Services & ATMs which will enable Milk societies to credit
payments directly to seller’s bank account
• Officials at amul are looking at upgrading the plastic cards which are being currently
used only for identification purposes, to smart cards which can be used to withdraw cash
from ATMs.
1) Direct milk bill payment to farmers. After every 10 days cycle payment has made to farmers
2) Produce meeting to be conducted at DCS level for the better transparency and improvement in
rust level
3) Amul focus on that to maintaining good rates in flush season.
) Random visit of quality person to attend the reception, collection of doubful samples and
adulteration test. All per strictly monitored for good since
5) Veterinary
service started at all target area.
6) Amul provides good quality of ctle feed to Amul milk producers
7) Bonus to milk producer for year 2014-15. Distributed near about 7 core rupees farmers on
bank.
8) Amul provided milk adulieration kit at per level it helps to know idetify the
Milk adulteration a per
9) FSSA license to societies- All the per have applied for food& drugs license.
CONCLUSION
AMUL, is playing a vital role in serving the rural class & contribution for the economic up
Lift ment of farmers. It is helping the farmers by giing them all facilities to rural people by
supplying fodder & feed, improving the breed by artificial insemination with the help of their
veterinary services. AMUL is reaping profit by equipping the latest technology& producing
better quality products. It is serving the bes quality milk & milk products to its customers,
thereby maintaining their top pasition in the market. It has atomized manufacturing and every
process is computerized. In other words, through automation has achieved great success and a
good recognition
Recommendations
AMUL Should maintain the good relationship with the farmers, co- operative societies
and distributors
More focus on milk procurement and maintain quality milk product.
.The distributors are also facing the problem of dumping which make it impossible for
them to forecast and give order for the next day as they currently have extra stock.
.The distributors of Amul should not be allowed to keep other milk products. And even if
they maintain the same, they should be punished.
Certain schemes needs to entertain to the milk distributors shall be given so as to
motivate them and increase our sales
.
*Trucks which are used for transport of Amul Pouch Milk should be washed regularly.
Company should try to make available their product at all most retailer's shops by
improving their distribution channel
.
. Satisfaction level of customers should be raised by providing good quality product at low
price, and should try to remove reasons for dissatisfaction of customers
Feedback, suggestion & complaints should be revised by AMUL if they are appropriate
& Good. It should also try to take actions for Implementation.
REFERENCE
BOOKS
WEBSITES
o www.amul.com
o www.google.co.in
ANNEXTURE
50
40 a) Learning
30
b) Knowledge, skill and
20 aptitude
c) Sharing information
10
2) logistics and supply chain management is must for enhancing productivity and
performance?
a) Completely agree
b) Partially agree
c) Disagree
40
30
20
10
0
a) Completely
b) Partially
agree c) Disagree
agree
3) Have you attended any logistics and supply chain management training in the last 01
year?
a) Yes
b) No
a) Yes
b) No
4) Which module best of soft skill development logistics and supply chain management
programme?
a) Personality and positive attitude
b) Business communication
c) Team building and leadership
d) Stress management and work-life balance
e) Business and corporate grooming
b) Business communication
0 10 20 30 40 50
5) Do you think that the feedback can evaluate the logistics and supply chain management
effectiveness?
a) Yes
b) No
a) Yes
b) No
6) Post logistics and supply chain management evaluation focus on result rather than on
the effort expended in conducting logistics and supply chain management?
a) Completely agree
b) Partially agree
80
70
60
50
40 a) Completely agree
b) Partially agree
30
20
10
0
1 2
7) What should be the approach of the logistics and supply chain management evaluation?
a) Completely agree
b) Partially agree
c) Disagree
50
45
40
35
30
25
20
15
10
5
0
a) Completely
agree b) Partially agree
c) Disagree
8) Should the logistics and supply chain management evaluation procedure reviewed and
revised Periodically?
a) Yes
b) No
a) Yes
b) No
9) Is the whole feedback exercise after the logistics and supply chain management worth
the time, money and Effort?
a) Yes
b) No
a) Yes
b) No
10) Any suggestion for improving the logistics and supply chain management feedback
procedure exists in amul dairy ?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
ANNEXTURE
Dear Madam/Sir, I am Sachin Raju Dhawale M.COM Second Year student from Ramanand
Arya D.A.V. College. My Fourth Semester Project Report at LOGISTICS AND SUPPLY
CHAIN MANAGEMENT Please give your views/opinions given below about project report
feedback in AMUL DAIRY. The information provided by you will be used by me strictly for an
analysis only.
2) logistics and supply chain management is must for enhancing productivity and
performance?
a) Completely agree
b) Partially agree
c) Disagree
3) Have you attended any logistics and supply chain management training in the last 01
year?
a) Yes
b) No
4) Which module best of soft skill development logistics and supply chain management
programme?
a) Personality and positive attitude
b) Business communication
c) Team building and leadership
d) Stress management and work-life balance
e) Business and corporate grooming
5) Do you think that the feedback can evaluate the logistics and supply chain management
effectiveness?
a) Yes
b) No
6) Post logistics and supply chain management evaluation focus on result rather than on
the effort expended in conducting logistics and supply chain management?
a) Completely agree
b) Partially agree
7) What should be the approach of the logistics and supply chain management evaluation?
a) Completely agree
b) Partially agree
c) Disagree
8) Should the logistics and supply chain management evaluation procedure reviewed and
revised Periodically?
a) Yes
b) No
9) Is the whole feedback exercise after the logistics and supply chain management worth
the time, money and Effort?
a) Yes
b) No
10) Any suggestion for improving the logistics and supply chain management feedback
procedure exists in amul dairy ?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________