Amul Supply Chain

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AMUL SUPPLY CHAIN MODEL
BACK END TO FRONT END
FARMERS
CHILLING PLANTS
MILK PROCESSING UNION & WAREHOUSES
MILK SOLD TO VILLAGE AND LOCAL RESTAURANTS
VILLAGE COOPERATIVE SOCIETIES (WITH CHILLING UNITS)
LOCAL RESTAURANTS/OTHER MILK RELATED BUSINESSES
VILLAGE COOPERATIVE SOCIETIES (WITH OUT CHILLING UNITS)
UPSTREAM

NETWORK SERVICES
VETERINARY
ANIMAL HUSBANDRY
ANIMAL FEED FACTORY
MILK CAN PRODUCERS
AGRICULTURE UNIVERSITY
RURAL MANAGEMENT

CONSUMERS
CONSUMERS
HOME DELIVERY CONTRACTORS
RETAILERS
WHOLESALERS
WAREHOUSES
INTERNAL

DOWNSTREAM

FRONT END TO BACK END

GCMMF VALUE CHAIN (GUJARAT COOPERATIVE MILK MARKETING FEDERATION VALUE CHAIN)

UPSTREAM | INTERNAL | DOWNSTREAM AMUL FACTS
* Total milk procurement by Member Unions in Gujarat (10.30 million kg) per day * Milk is procured twice a day from 2.2 million from Gujarat alone * The payment is made under twelve hours of procurement

* 45 depots
* Total house hold consumers covered are 150000
* Total milk handling Capacity per day 13.67 million litres per day * Milk Drying Capacity is 647 Mts. Per day
* Cattle feed manufacturing Capacity is 3690 Mts. Per day UPSTREAM CHANNEL
Milk is procured from farmers to the manufacturing units
1. In the first step, the milk is taken to Village Cooperative Societies (VCS) by the farmers on foot or bicycles in small quantities 2. The second step involves the transportation of milk from the cooperatives to the manufacturing units, this is done in special trucks which are equipped with tankers to carry milk INTERNAL MILK PROCESSING

Milk collection cycle
The success of each and every dairy industry is getting the milk from farmers and making that milk in use as soon as possible before that milk gets spoiled because milk is a perishable product. Base of success of Amul is milk collection cycle PACKAGING MILK

HOMOGENIZATION
PASTEURIZATION
ADDING VITAMINS

DOWNSTREAM CHANNEL
It is the distribution part of the supply chain. From the manufacturing units to the retailers. First leg of transport is from the manufacturing unit to the company depots. This is done using 9 and 18 MT trucks any lesser quantity will be uneconomical to the company therefore sometimes the quantity ordered is lesser than club loading which means that the product ordered is supplied with some other products Frozen food the temperature of these trucks is kept below –18 degree celsius Dairy wet the temperature of these trucks is kept between 0-4 degree Celsius Second leg is from the depot to the wholesale dealers, this transport is carried out in insulated 3 and 5 MT TATA 407’s . A permanent dispatch plant (PDP) is prepared where the distributor plans out the quantity of various products to be ordered on a particular date. 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. Third leg ie the flow of good from wholesalers to retailers; transportation is done on auto rickshaws, rickshaws and bicycles. BEST PRACTICES IN AMUL

* Managing large decentralized network of supplier and producer * Simultaneous development of markets and suppliers
* Lean and efficient supply chain
* Charge for each service provided to supplier
* Purchase all milk that member farmers produced
* Sell liquid milk at affordable prices so as to serve a large number of customers * Develop and deliver services that will improve lives of people in the network * Hiring professional managers , to run the federations and unions, whose values included upliftment of rural poor * Codification of raw material in an easy to understand manner * Payment to milk suppliers in time and...
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