SUPPLY CHAIN MANAGEMENT

GROUP MEMBERS
Arumugam Bharath Pachaiyappaan Vivek

AMUL
Type Industry Founded Key people Revenue

Cooperative Dairy 1946 Dr. Verghese kurien INR 70 billion

Brand name managed by an apex cooperation organization GCMMF Amul initiated the dairy co-operative movement in India and an apex cooperative organization called Gujarat Co-operative Milk Marketing Federation(GCMMF) was formed. Largest food brand in India. Accreditation with 9001 and HACCP certification by QAS, Australia.

GCMMF: AN OVERVIEW

Members

12 district cooperative milk producers Union

No. of Producer Members

2.2 million

No. of Village Societies

10,675

Total Milk handling capacity

11.22 million liters per day

CONT

Milk collection (Annual Average): 3.05 billion liters. Milk collection (Daily Average): 8.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3500 Mts. per day

VALUE CHAIN PROCESS

LOGISTICS ACTIVITIES
Logistics in collection
I. II. III.

8.4 million liters of milk per day From about 10,675 separate village cooperative societies. 2.2 million milk producing member.

Supplier logistics
I.
II. III.

Weighing the milk. Determining of fat content. Calculation of the purchase price.

CONT.
Logistics in coordination of

Storing the milk. Processing the milk. Distributing the milk.

MILK COLLECTION UNIT

The milk collection center at village cooperative societies are automated. Automatic milk collection system units(AMCUS) at village society were installed to automate milk production logistics. AMCUS facilities to capture member information, milk fat content, volume collected, and amount payable to each member electronically.

SHIFT PROCESS
The

company zeroed in on ERP as means to keep pace with dynamically changing business environment. TCS was hired to guide them in its implementation. The project was named as Enterprise Wise Integrated Application System (EIAS). Amul also connected its zonal offices, regional offices and members dairies through VSATs.

REAPING RETURNS
Radical changes in business processes - eliminating middlemen . Improved delivery mechanisms and transparency of business operations. Due to this process, AMUL is able to collect 8.4 million litres of milk per day. Huge reduction in processing time for effecting payments to the farmers from a week to couple of minute. Processing of 10 Million payments daily, amounting to transactions worth USD 3.78 million in cash.

CONT..
Movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner. Practicing just in time supply chain management with six sigma accuracy. Online order placements of Amuls products on the web. Distributors can place their orders on the website. Amul exports products worth around US$ 25 million to countries in West Asia, Africa and USA.

GCMMFS SUPPLY CHAIN

THE CHANNEL NETWORK

Procurement Distribution

channel- upstream flow

channel- downstream flow

PROCUREMENT

Activities at the village level comprised developing and servicing the VCSs. Increasing milk collection, procuring milk, and transporting it to the chilling and processing units twice a day. The VCSs provided the farmers with good quality animal feed, fodder, and other services like veterinary first aid.

PROCUREMENT CHANNEL
On an average around thousand farmers come to sell milk at their local co-operative milk collection center. Each farmer has been given a plastic card for identification. At the milk collection counter, the farmer drops the card into a box and the identification number is transmitted to a personal computer attached to the machine. The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine. Both these details are recorded in the PC. The computer then calculates the amount due to farmer on the basis of the fat content. The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.

COLD STORAGE NETWORK

Chillers Prompt

in proximity of villages

transport to district facilities for further dispatch to consumers/ processing units.

Chilled

trucks to transport processed products

to local chillers by insulated rail tankers and chilled

Delivery

trucks.

Refrigerators

and freezers with retailers and departmental stores to retain freshness.

DISTRIBUTION

GCMMF coordinated with various unions to get a regular supply of milk and dairy products. The processed milk and dairy products were procured from district dairy unions and distributed through third party distributors. To ensure quality and timely deliveries, GCMMF and the district unions had several mechanisms in place. The unions monitored the supplies of milk and the distribution of finished products.

DOWNSTREAM 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 407s

Third

leg

WDs to retailers Transport through rickshaws according to the beat plan

REVERSE LOGISTICS
MILK CHURN from dairy to VCS POUCH MILK TRAY from retailer to dairy BOTTLE from retailer to dairy DAMAGED PRODUCTS from customer to retailer then to dairy

EXPANSION PLAN

Tie up with the Wal Mart Export to more countries.

Plan to open more than 10000 Amul parlor.

MISSION 2020
Very ambitious future plan

Turnover of 27000 crore.(three fold increase in the group turn over.) Milk production 33.1 million liter/day. Milk drying capacity 200 mt/day

AMUL (RECENTLY IN NEWS)

Milk via milk train. Tie up with Adani Logistics.

50 wagon each capacity 24k liter.

Initial transport cost was 40 crores ,reduce it to half.

THANK YOU..