Synopsis

ON

STUDY ON THE DISTRIBUTION AND SUPPLY CHAIN

MANAGEMENT OF AMUL MILK

Submitted in partial fulfilment of the requirement for the degree of PGDM

Academic Session: 2018-20

Faculty Mentor
Dr. V.K. Gupta
Submitted by:
Aayush Verma
BM-018078

INSTITUTE OF MANAGEMENT STUDIES, GHAZIABD

Sr. No. Chapter Page No.
1 Introduction

2 Objective of the Study

3 Literature Review

4 Research Methodology

5 References
INTRODUCTION:
From chronic shortages of milk, India has emerged as the largest milk producer in the world
crossing 132.4 million tonnes in 2012-13 and per capita availability of milk increasing from
about 110 grams per day in early-1970s to 299 grams in 2012-13 (GoI, 2014). This success
story of milk production has been written primarily by the millions of smallholder producers,
who dot the landscape of milk production in the country. Although the yields have remained
quite low compared to the world average, the dairy sector has not only survived but also
flourished. Several factors appear to have helped it flourish. The “Operation Flood”, one of the
world’s largest dairy development programs, which helped to create strong network and
linkages among millions of smallholder milk producers, processors and urban consumers, was
an important instrument in achieving this success.

Milk production was more or less stagnant during the 1950s and 1960s and annual production
growth was negative in many years (Figure 1). The per capita availability of milk declined
which concerned the policy makers. During the second-half of the 1960s, the Government of
India made major policy changes in the dairy sector.

In the early-1990s, the Government of India introduced major trade policy reforms, which
favoured liberalization of all sectors of economy and dairy sector was no exception to this. The
dairy industry was delicensed in 1991 with a view to encourage private investment and flow of
capital and new technology in the sector. The competition from the organized private sector
was immediate in the form of sharp increase in capacities for milk processing, especially in
areas where milk availability was relatively significant. Within a year of delicensing, over 100
new dairy processing plants came up in the private sector. However, due to political pressures,
the Milk and Milk Products Order (MMPO) was promulgated in 1992 under the Essential
Commodities Act of 1955, which regulated milk and milk products production and
procurement in the country. The Government of India finally repealed the provision of
registration under the MMPO for setting up milk processing and milk product manufacturing
plants in 2002 and Foreign Direct Investment (FDI) in dairy processing sector was also
allowed. These policy shifts fully exposed the Indian dairy sector to the forces of open market
and led to significant changes in structure of dairy processing in the country.

As it is clearly seen in the business environment nowadays, effective supply chain management
seems to be considered as a crucial concern that has to be dealt with in global business context.
In the local activities of traditional business, those involving in supply chain have been doing
such activities independently. But at present, it is not advised to perform business
independently considering the ever growth of the competitive market . Consequently, more
developed and well-organized supply chain coordination is ideal for consistent success and
profitability of any business. The more convincing reason for such claim is that the ever
increasing competition that is constantly influenced by business globalization, product
diversity and technological advancement motivated independent firms to work in unity in a
supply chain that allows them to gain mutual benefits . In today’s business, competition is
among integrated supply chains instead of individual organizations. Hence, a supply chain shall
be well coordinated and that will play a huge role in making supply chain attainable to customer
demands.

Coordination of different business activities among units become vital as organizations pay
much attention to their core activities. Thus, their fruitfulness constantly relies on their capacity
to coordinate their internal and external activities in the value chain outside their own
boundaries. The need for coordination is evident in supply chains, as companies forming a
supply chain are dependent on the performance of other organizations. Supply chain
coordination is achieved when a decision maker, acting rationally, makes decisions that are
efficient for the supply chain as a whole.

It is argued that, to sustain in competitive business environment, firms must reduce the flow of
interruption within upstream and downstream supply chain process. Here, the question is how
to achieve the strategic fit in the supply chain, so that the tasks of each supply chain stage can
be completed in a manner consistent with a mutual goal. The reason is that firms’ supply chain
profitability depends on how well all supply chain members work together.
 RESEARCH OBJECTIVE

I. To Study Distribution strategy of Amul..

II. TO Study the supply chain management of Amul

III. To study the Effects of Adaptation of IT implementation by Amul Before and After
 Literature Review

The Review of literature has been taken from

Dr. Prasad R. and Dr.Satsangi R. (2013) they found that Organizational Structure can
improve the working condition of an organization and a poor structure can ruin all the
possibilities of openness, and amul providing a support system to the milk producers without
their agro-economic system and plugging back the profits, by prudent use of men, material and
machines. Even though growing with time and on scale.

PANDITVIRENDRA (2013) ,explained the rapid expansion and distribution

strategy of AMUL, due to by adapting new technologies and strong support system
to their farmers and providing good quality of products to their customers.

PARIKH CHINTAN (2013), researcher give the possible reasons for Growing
Amul so fast , how they use the latest technology to sustain their operational
Activites ,To ensure interest of famers at first place there is unique way in selection
of management team at GCMMF. Each Village Society elects a chairperson and a
secretary from amongst its member farmers to manage the administration of the
Village societies.

Chandra Pankaj and TirupatiDevanath (2003) in which they explained that AMUL in
western India that has developed a successful model for doing business in large emerging
economy. It has been primarily responsible, through its innovative practices, for India to
become world’s largest producer of milk. This paper draws various lessons from the
experiences of AMUL that would be useful to cooperatives globally as well as firms that are
interested in doing business in large emerging markets like India and China.
 RESEARCH METHODOLOGY

 Research Design : Descriptive

 Data Collection : Primary and Secondary Sources
 Data Collection Tools : Case Study , Observations.

RESEARCH OBJECTIVE

 To Study Distribution strategy of Amul..

 TO Study the supply chain management of Amul
 To study the Effects of Adaptation of IT implementation by Amul Before and After

DATA COLLECTION

Before conducting the study we need to study the data. In this research secondary data
collection methods are used. Which includes research paper, articles, newspaper and
magazines.
 References

http://www.amul.com/

http://krishikosh.egranth.ac.in/bitstream/1/73886/1/DHWANI%20JOSHI.pdf

https://www.coursehero.com