PRESENTATIONON

OVERALL

DISTRIBUTION CHANNEL OF

“AMUL”

PRESENTED BY SAMIM, PANKAJ, CHITRA, ABHISHEK, SAVITA, NAGRAJ.

THE COMPANYTHE COMPANY

• Amul means priceless in Sanskrit

• Since 1946

• Market leaders for Amul butter

• Turnover of 25 billion

• Amul is a symbol for• High quality at reasonable prices

• Genesis of a vast co-operative network

• Triumph of indigenous technology

• Farmer’s organization

IntroductionIntroduction

• The “Bottom of the Pyramid” Structure.

• Founded by Dr. Verghese Kurien : Father of white revolution in India

• Successful “value for money” strategy.

• A successful cooperative society that always take care of the farmers and loyal customers.

PRODUCTS

• Bread Spreads

• Milk Drinks

• Powder Milk

• Fresh Milk

• Cheese

• For Cooking

• Chocolate

GCMMF: An Overview

• Members– 13 district cooperative milk producers Union

• No. of Producer Members– 2.79 million

• No. of Village Societies– 13,328

• Total Milk handling capacity– 11.22 million liters per day

NETWORK

• Available in over 5 lakh outlets in a network of around 4000 distributors

• 47 depots with dry and cold warehouses to buffer inventory of all its products

• Advance demand draft basis from wholesale dealers

Cont…

• Milk collection (Total - 2008-09): 3.05 billion liters.

• Milk collection (Daily Average 2008-09): 8.4 million liters

• Milk Drying Capacity: 626 Mts. per day

• Cattle feed manufacturing Capacity: 3500 Mts. per day

SCM and Market LogisticsSCM and Market Logistics• Implementation of an ERP program as low as

Rs. 3 corers in collaboration with TCS ltd.

• Synchronized working and best possible utilization of the available resources

• Maintains details regarding the inventory management.

Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products.

GCMMF = Gujarat Co-operative Milk Marketing Federation; MUs = Member Unions; VCs = Village Co-operatives.

Supply Chain at Amul

THE CHANNEL NETWORKTHE CHANNEL NETWORK

• Distribution channel- downstream flow

• Procurement channel- upstream flow

DOWNSTREAM FLOWDOWNSTREAM 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 407’s

• Third leg• WDs to retailers

• Transport through rickshaws according to the beat plan

UPSTREAM FLOWUPSTREAM FLOW

• Milk is taken to VCS by farmers by bicycles

• Transportation of milk from the co-operatives to the manufacturing units through trucks equipped with tankers equipped to carry milk

Distribution Process

Company (Gujrat) Depots (Bangalore) Wholesaler 20% Margin (No.15)

Retailer 5% Margin Consumers

Selection Criteria of the Channel Selection Criteria of the Channel MembersMembers

• Authentication by way of identity• Proof of solvency-details of the bankers• Safety of inventory by getting the company stock

insured• Proper storage space in forms of refrigerators• The company requires the dealers to furnish any

Advertising & Sales initiative undertaken by them on behalf of the company

Selection Criteria Conti…Selection Criteria Conti…

• Details of delivery vehicles• Competent salesman• Details of the product kept of other companies

have to be provided • Dealers of the company must carry a good

reputation • Market coverage of distributors need to be defined

VALUE CHAIN PROCESS

Thank You!!Thank You!!