SUPPLY CHAIN MANAGEMENT

OF
AMUL

Presented by:
Anshika Patel
Abhinandan Malhotra
Sweta Raghuvanshi
Taranjeet Singh
Lokesh Nandan 1

AMUL
Type -

Cooperative

Industry -

Dairy

Founded -

1946

Key people - Dr. Verghese kurien

Revenue -

INR 41420 Million

Employee -

Marketing arm: 735

Milk producers: 684807

KEY FACTS
AMUL means priceless in Sanskrit Amoolya
Brand name managed by an apex cooperation organization GCMMF
Worlds biggest vegetarian cheese brand
Worlds largest pouched milk brand
Largest food brand in India
Spurred the white revolution in India
Accreditation with 9001 and HACCP certification by QAS, Australia.

GCMMF

GCMMF - An Overview
Year of Establishment

1973

Members

17 District Cooperative Milk

Producers' Unions (16 Members &
1 Nominal Members)

No. of Producer Members

6,84,807

No. of Village Societies

1215

Total Milk handling capacity per

day

5 Million liters per day

Whey Drying Capacity

60 Mts. Per day

Milk collection (Daily Average )

1.8 million liters

Milk Drying Capacity

100 Mts. per day

Cattle feed manufacturing Capacity

1200 Mts. per day

Sales Turnover -(2014-15)

INR 41420 Million

GCMMF Ltd is a well known organization for its leadership in dairy

industry. Apart from marketing of dairy products, GCMMF Ltd also
provides support in dairy farming by extending veterinary services and
quality inputs like Cattle Feed etc. GCMMF Ltd is the largest producer of
Cattle Feed in India and is associated with it since 1964.
Product Group : Animal Feed, Cattle Feed, Pellet Feed, Pashu Aahar,
Dan, Dana, Sudana, Goli etc.
Product Class : Compound Balanced Cattle Feed
Brand Name : Amul Power Dan
Packaging : HDPE Laminated 50 Kg Bag
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STRATEGICAL PILLERS
OF AMUL
1.

QUALITY
VALUE FOR
MONEY
2.

3.

4.

AVAILIBILITY

SERVICE

AMUL PRODUCTS DIVERSIFICATION

Bread Spreads

PRODUCTS

Amul Milk
Cheese
UHT Milk
Beverage Range
Amul PRO
Ice Cream
Paneer
Dahi
Ghee
Milk Powders
Mithai Range
Mithai Mate
Chocolates
Fresh Cream
Pouch Butter Milk
Amul Cattle Feed
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SUPPLY CHAIN
MANAGEMENT

10

11

VILLAGE DAIRY COOPERATIVE SOCIETY

(VDCS)
Collection of surplus milk & payment based on quality &
quantity.
Providing support services to the members.
Selling liquid milk for local consumers of the village.
Supplying milk to the District Milk Union

DISTRICT COOPERATIVE MILK

PRODUCERS UNION (MILK UNION)
Procurement of milk from the Village Dairy Societies of the
District.
Arranging transportation of raw milk from the VDCS to the
Milk Union.
Providing input services to the producers.
Conducting training on Cooperative development.

CONT..
Providing management support & regular supervision to the
VDCS.
Establish Chilling Centers & Dairy Plants for processing the
milk.
Selling liquid milk & milk products within the District.
Process milk into various milk & milk products.

STATE COOPERATIVE MILK

FEDERATION (FEDERATION)
Marketing of milk & milk products
Establish distribution network
Arranging transportation from the Milk Unions to the market.
Creating & maintaining a brand
Providing Technical Inputs, management support & advisory services.
Decide on the products to be manufactured at various Milk Unions
(product-mix)
Conduct long-term Milk Production, Procurement, Processing &
Marketing Planning
Conflict Resolution & keeping the entire structure intact

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

Storing the milk.

Processing the milk.
Distributing the milk.
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CONT
III.Supplier logistics
Weighing the milk.
Determining fat content.
Calculation of the purchase price.

17

THE CHANNEL NETWORK

Procurement channel- upstream flow

Distribution channel- downstream flow

PROCUREMENT
Activities at the village level comprised developing and servicing the VCSs.
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.

PROCURNMENT CHANNEL
On an average around thousand farmers come to sell milk at their local cooperative 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.
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.

COLD STORAGE NETWORK

Chillers in proximity of villages
Prompt transport to district facilities
dispatch to consumers/ processing units.

for

further

Chilled trucks to transport processed products

Delivery to local chillers by insulated rail tankers and
chilled trucks.
Refrigerators and freezers with retailers
departmental stores to retain freshness.

22
and

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 distribution
of finished products.
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DISTRIBUTION PROCESS

Company
Wholesaler

Dealer Franchisee

Retailer
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Consumers

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 according to the beat plan

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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27

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.
Amul has plans to create a large chain of such outlets
to be managed by franchisees throughout the country.
More than 2000 parlor with a turnover of Rs. 200
crores.

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AUTOMATIC MILK
COLLECTION UNIT SYSTEM

 Amul has installed over 3000 Automatic milk

collection system units(AMCUS) at village societies
to capture member information, milk fat content,
volume collected and amount payable to each
member.
Each farmer is given a plastic card for identification
Computer calculates amount due to farmer on the
basis of fat content
The value of the milk is then printed out on slip &
handed over to the farmer, who collects the payment
from adjacent window
With the help of IT farmers receive their payment
within minutes
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AUTOMATIC MILK COLLECTION SYSTEM

UNITS (AMCUS)

Supply management
through Internet
Amul makes over 10 million payment transactions
daily. On the logistics more than 5000 trucks move
milk from the villages to 200 dairy processing plants
twice a day according to a carefully planned
schedule.
Its ERP software named as Enterprise Wide
Integrated Application System(EIAS) covers a
plethora of operations like market planning
advertising and promotion, distribution network
planning. Each of Amul offices are connected via
internet and all of them send daily reports on sales
and inventory to the main system at Anand.
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THANK YOU

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