Amul Supply Chain

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A Project Report on

AMUL’S SUPPLY CHAIN MANAGEMENT

Submitted By :

SRIRAM MUKUND

DINESH M

INDEX

1) INTRODUCTION TO AMUL . . . . . . . . . . . . . . . . . . . . . . 3

2) STRATEGIES OF AMUL . . . . . . . . . . . . . . . . . . . . . . . . . 5

3) AMUL’S SUPPLY CHAIN MANAGEMENT . . . . . . . . . . 6

4) GCMMF’S SUPPLY CHAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

5) E- SUPPLY CHAIN MANAGEMENT OF AMUL . . . . . . . . . . .13

6) AMUL CYBER STORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7) BENEFITS OF E-SCM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8) FUTURE PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

9) BIBLIGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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Introduction

➢ The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a US $ 500 million turnover institution.

It is a institution built up with a network of over 10000 Village Co-operative Societies and 500,000 plus members.

➢ 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.

➢ Managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India

➢ 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.

Strategy of Amul

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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’s Supply Chain Management

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AMUL 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. 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...
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