Logistics and Supply Management

Inbound Logistics Of AMUL

Project By: Foram Chauhan

INTRODUCTION
The Architect Of Indias White Revolution He brought the contribution of dairy industry to 22% of agricultural GDP Winner Of World Food Prize

Dr. Verghese Kurien

Anand Milk Union Limited.

Type - Cooperative

Industry - Dairy
Founded - 1946 Key people - Dr. Verghese kurien Revenue - INR 67.11billion (2008-2009) Employee - Marketing arm: 735 TOTAL NO OF EMPL.

MARKET SHARE

AMUL PATTERN
A three tier cooperative structure: Dairy cooperative society at village level

Milk union at district level

Milk federation at state level

Village Dairy Cooperative Society (VDCS)

Collection of surplus milk from the milk producers of the village & payment based on quality & quantity Providing support services to the members like Veterinary First Aid, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry & Dairying, etc. Selling liquid milk for local consumers of the village Supplying milk to the District Milk Union Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by 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 like Veterinary Care, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc. Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members.

District Cooperative Milk Producers Union (Milk Union)

Providing management support to the VDCS along with regular supervision of its activities. Establish Chilling Centres & Dairy Plants for processing the milk received from the villages. Selling liquid milk & milk products within the District Process milk into various milk & milk products as per the requirement of State Marketing Federation. Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members.

State Cooperative Milk Federation (Federation)

Marketing of milk & milk products processed / manufactured by Milk Unions. Establish distribution network for marketing of milk & milk products. Arranging transportation of milk & milk products from the Milk Unions to the market. Creating & maintaining a brand for marketing of milk & milk products (brand building). Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services. Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

State Cooperative Milk Federation (Federation)

Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions. Arranging for common purchase of raw materials used in manufacture / packaging of milk products. Decide on the prices of milk & milk products to be paid to Milk Unions. Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same. Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning. Arranging Finance for the Milk Unions and providing them technical know-how. Designing & Providing training on Cooperative Development, Technical & Marketing functions. Conflict Resolution & keeping the entire structure intact.

Automatic Milk Collection System Units (AMCUS)

(With Help of Enterpirse Wise Integrated Application System By TCS)

(From 20min to 50 sec)

PROCURNMENT PROCESS
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. 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.

ORGANIZATION STRUCTURE
LEVEL
State Federation

MEMBERS

District level Chairpersons, Price paid to district Registrar of Co-operatives, unions NDDB Representative, Technical Product mix & quantity Expert, CEO

DECISIONMAKING

District

Chairpersons of Village Dairy Cooperative Societies, BOD, MD

Price paid to village co-operative societies Membership Price paid to milk suppliers

Village

Milk Producers, Managing Committee

Integrated Logistics Management Of AMUL

Logistics Management at AMUL

The procurement prices set by Unions are a major determinant of milk supply, pricing strategy for dairy products has a strong influence on consumer demand. The Unions and GCMMF share coordination activities with outbound logistics. GCMMF takes responsibility for coordinating with the distributors to assure adequate and timely supply of products. The Unions, on the other hand, coordinate collection logistics and support services to the member-farmers.

The Parties involved for Logistical activities:

* Inbound Logistics Bajrang traders Yamnaji traders *Outbound Logistics Sagar distributor and druvi sales *Common parties Adani Logistics Limited (ALL) TCS

Worlds biggest vegetarian cheese brand Worlds largest pouched milk brand Largest food brand in India Accreditation with 9001 and HACCP certification by QAS, Australia. Amul with the Best of all categories Rajiv Gandhi National Quality Award. Largest milk handling capacity in Asia Largest Cold Chain Network Export to 37 countries worth Rs. 150 crores Winner of APEDA award for nine consecutive years 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The Trusted Brand Advisory

Achievements

Amuls Role In Indian Economics

The role of dairying in poverty reduction The fact that rur ]involves more than agricultural production The value of national ownership in development The beneficial effects of higher incomes in relieving the worst aspects of poverty The capacity of dairying to create jobs The capacity of dairying to benefit the poor at low cost The importance of commercial approach to development

Thank You