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AMUL’s Supply Chain Management
In partial fulfillment of the requirements of Operations Management Course

26-Feb-13
FORE School of Management

Group - 1

Jithesh J211062
Kumar Gaurav211070
Kumar Varun211071
Vinoth Kannan R211105
Rinsi Daniel211111

Contents
Introduction3
The AMUL Story4
Basic Supply chain Strategy of Amul6
The distribution network7
Largest Cold Chain7
Customers7
Suppliers:7
Third Party Logistics Services:7
Simultaneous Development of Suppliers and Customers:8
Managing Third Party Service Providers:9
AMUL’s Supply Chain Management9
E-Supply Chain Management10
E-SCM Diagram for AMUL10
Working of E - SCM11
Supply and Distribution11
Strong Initiatives in E-Commerce11
Quality Management System Initiatives12
Hygienic & Clean Milk Production Drive12
Bulk Milk Chillers12
Road Milk Tankers13
Animal Disease Diagnostic Laboratory13
Animal Nutrition13
Quality of life13
References14

Introduction
Since the turn of 19th century, Cooperatives have existed as dominant forms of organization in the dairy industry around the world. Sometimes they have played the role of developing infant industry while at other times they have been used to strengthen weak production bases in an environment where market failures tend to be higher for marginal producers. In some other cases, a network of small producers have organized themselves to better market their products. Management of these cooperatives have also led to some interesting managerial insights for managers in emerging as well as developed economies.  Large emerging economies, e.g., India and China, have complexities that range from development of markets (where the largest segment of population is the one which has low purchasing power) to integration of low cost suppliers who are predominantly very small. For firms that aspire to conduct substantial business in such markets, such complexities have to be recognized and then overcome. The challenge is to understand the linkages between markets and the society. This would also require development of a new business model that helps a firm grow in such environments. This paper is about one such successful model. The Kaira District Milk Cooperative Union or AMUL in India is an example of how to develop a network of firms in order to overcome the complexities of a large yet fragmented market like those in emerging economies by creating value for suppliers as well as the customers. AMUL has led the milk dairy revolution in India that has now emerged as one of the largest milk producers in the world. Some Facts about the company includes, * The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a INR 116.67 billion turnover institution. It is a institution built up with a network of over 15000 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 more than 70,000 villages and over 200 districts in India are part of it. * GCMMF markets its products through number of sales offices throughout India and distribution is done through a network of over 4,000 stockiest who in turn supply more than 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 3.03 million milk producers in Gujarat, India. * Currently Amul has 2.41 million producer members with milk collection average of 9.2 million litres/day. * Amul is the largest producer of milk and milk products in the world

The AMUL Story
 
The Kaira District Cooperative Milk Producers’ Union Limited was established on December 14, 1946 as a response to exploitation of...
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