Presented By:

Meenal Agarwal 402

Saurabh Khandelwal 414
Nisarg Shah 522
Utsavi Pathak 528
Aman Chaudhary 305
Shilpa Suri 525
Hitesh Dudani 407
W AMUL means n ln SanskrlL
W n mllllons of homes slnce 1946
W 1urnover 8s 120 bllllon ln 201011
Amul A symbol of
lghquallLy producLs sold aL reasonable prlces
Cenesls of a vasL cooperaLlve neLwork
1rlumph of lndlgenous Lechnology
roven model for dalry developmenL
ujarat Cooperative Milk Marketing Federation
ndia's largest food products marketing organization.
ntends to be largest food company in ndia.
State level apex body of milk cooperatives in ujarat
Aims to provide remunerative returns to the farmers
Also serve the interest of consumers by providing quality
products which are good value for money.
0
10000
20000
30000
40000
30000
60000
199493 199396 199697 199798 199899 199900 200001 200102 200203 200304 200403 200306 200607 200708
Serles1
Sales lorecasLlng
MeLhodology
MosLly based on Lhe emplrlcal daLa
1rend CrowLh Analysls
8ased on ndusLry CrowLh raLe
1errlLory AllocaLlon
W 8ecommended ways
Ceographlc dlsLrlbuLlon
Slze of poLenLlal markeL
llgures
W M||k |s procured tw|ce a day from 2 m||||on farmers from Gu[arat a|one
W 1he payment |s made under twe|ve hours of procurement
W 1here are 10000 v|||age cooperat|ve soc|et|es
W 1here are 3600 who|esa|e d|str|butors |n the country
W 4S depots
W 1he CI agents are not f|xed and are dec|ded by the |oca| company off|ces
W 1here are aprox 4S0000 reta||ers spread a|| over Ind|a
W 1ota| house ho|d consumers covered are 100000
W 1he m||k procured per day |s S m||||on ||ters
W Where the tota| capac|ty of operat|on |s 7 m||||on ||ters per day
W 1he peak process|ng t||| date has been 6 m||||on ||ters per day
W 1hese co operat|ve soc|et|es are bound to supp|y the|r produce on|y to GCMMI
Supply Chaln aL Amul
CMMF = ujarat Co-operative Milk Marketing Federation;
MUs = Member Unions; VCs = Village Co-operatives.
Out of the entire milk procured,
approximately 40 per cent is sold as
liquid milk and 60 per cent is
converted to value added products.
SCM and MarkeL
LoglsLlcs
W UpstreamChanne| ln whlch mllk ls procured from Lhe farmers Lo Lhe manufacLurlng unlLs
W n Lhe flrsL sLep Lhe mllk ls Laken Lo Lhe vCS by Lhe farmers on fooL or blcycles ln small quanLlLles
W 1he second sLep lnvolves Lhe LransporLaLlon of mllk from Lhe cooperaLlves Lo Lhe manufacLurlng unlLs Lhls
ls done ln speclal Lrucks whlch are equlpped wlLh Lankers Lo carry mllk
W ownstream Channe| lL ls Lhe dlsLrlbuLlon parL of Lhe supply chaln lrom Lhe manufacLurlng unlLs Lo Lhe
reLallers
W I|rst |eg of LransporL ls from Lhe manufacLurlng unlL Lo Lhe company depoLs 1hls ls done uslng and 18
M1 Lrucks any lesser quanLlLy wlll be uneconomlcal Lo Lhe company Lhere fore ls some Llme Lhe quanLlLy
ordered ls lesser Lhen club loadlng ls done whlch means LhaL Lhe producL ordered ls supplled wlLh some
oLher producLs
Irozen food Lhe LemperaLure of Lhese Lrucks ls kepL be|ow 18C
a|ry wet Lhe LemperaLure of Lhese Lrucks ls kepL between 04C
W econd |eg ls from Lhe depoL Lo Lhe Wu's Lhls LransporL ls carrled ouL ln |nsu|ated 3 and S M1 1A1A 407's
here a permanenL dlspaLch plan (u) ls prepared where Lhe dlsLrlbuLor plans ouL Lhe quanLlLy of varlous
producLs Lo be ordered on a parLlcular daLe
W 1h|rd |eg Lhls ls Lhe flow of good from Wu's Lo reLallers a beaL plan ls prepared and LransporLaLlon ls done
on auLorlckshaws rlckshaws and blcycles
ulsLrlbuLlon neLwork
Distribution ChanneI of AmuI
ulsLrlbuLlon neLwork
Distribution ChanneI of AmuI
1echnology nLegraLlon
W nterpr|se resource p|ann|ng Lhe company aL has lmplemenLed an L8
program as low as 8s 3 corers ln collaboraLlon wlLh 1CS lLd 1he company
uses lL Lhe daLa rlghL from Lhe procuremenL from Lhe farmers Llll Lhe
dellvery of goods Lo Lhe reLallers ls fed lnLo Lhe sysLem 1he sofLware
enabllng Lhe channel members Lo use for Lhe synchronlzed worklng and
besL posslble uLlllzaLlon of Lhe avallable resources malnLalns deLalls
regardlng Lhe lnvenLory managemenL
ManufacLurlng unlLs
ulsLrlbuLlon neLwork
W uepoLs wlLh dry and cold warehouses Lo
buffer lnvenLory of Lhe enLlre range of
producLs
W 1ransacLs on an advance demand drafL basls
from lLs wholesale dealers lnsLead of Lhe
cheque sysLem adopLed by oLher ma[or lMCC
companles
W hllosophy of malnLalnlng cash LransacLlons
LhroughouL Lhe supply chaln
ulsLrlbuLlon neLwork
W Wholesale dealers carry lnvenLory LhaL ls [usL
adequaLe Lo Lake care of Lhe LranslL Llme from
Lhe branch warehouse Lo Lhelr premlses
W 1hls [usLlnLlme lnvenLory sLraLegy lmproves
dealers reLurn on lnvesLmenL (8C)
W All CCMMl branches engage ln rouLe
schedullng and have dedlcaLed vehlcle
operaLlons
ollcy regardlng
unsold/spollL goods
W f producL crosses Lhe shelf llfe Lhe reLaller
bears Lhe cosLs
W f Lhe producL geLs spollL durlng Lhe
LransporLaLlon or lf Lhere ls any cusLomer
complalnL Amul bears cosLs
W unsold goods are noL reLurned Lo Lhe
manufacLurer
W no reverse loglsLlcs
ShorLenlng Lhe Channel
W Amul arlours
2300 Amul arlours ln 200708
Coal of seLLlng up 10000 ouLleLs by March 2010
W Web based orderlng
SelecLlon and 8ecrulLmenL
W AuLhenLlcaLlon ls requlred by Lhe regardlng Lhe ldenLlLy of Lhe channel members whlch lncludes
Lhe name address phoLograph of Lhe locaLlon
W SafeLy of Lhe lnvenLory whlch means LhaL Lhe dlsLrlbuLor/ dealer should geL Lhe sLock of Lhe
company lnsured
W nvenLory or Lhe perlshable goods kepL by Lhe dlsLrlbuLor/ dealer should be ln good condlLlon
whlch means a deLall of sLorage space 8efrlgeraLlon faclllLy ls Lo be provlded 8efrlgeraLlon
sysLem should have deep freezers cold room walk ln coolers
W ueLalls of Lhe dellvery vehlcle whlch lncludes LlghL Commerclal vehlcles MaLador 3 Wheeler
van 1rlcycle van and/ush carL 1he number model of each of Lhe vehlcle needs Lo be
furnlshed Lo Lhe company
W CCMMl acknowledges Lhe facL LhaL lL needs Lo be senslLlve Lo Lhe markeL demands lor Lhls lL
requlres LhaL a number of salesmen needs Lo be presenL on Lhe fleld 1he salesmen Loo are
dlvlded lnLo varlous caLegorles llke Lhe lleld salesmen CounLer salesmen Also Lhe deLalls of
Clerlcal SLaff Mazdoors are Lo be provlded 1he Lechnlcal compeLence of Lhe salesmen needs Lo
be menLloned
W ueLalls of Lhe producL kepL of oLher companles have Lo be provlded 1he annual sales of
Lhese producLs Loo have Lo be menLloned Also deLalls of complemenLary producLs
producL llnes need Lo be menLloned
W uealers of Lhe company musL carry a good repuLaLlon 1hls ls due Lo Lhe facL LhaL Lhe
company belleves repuLaLlon of Lhe dealer affecLs Lhe cllenLele
W MarkeL coverage by Lhe dlsLrlbuLors needs Lo be deflned whlch lncludes deLalls of
Ceographlc coverage CuLleLs per markeL area
W 1he company also requlres Lhe dealers Lo furnlsh any AdverLlslng Sales lnlLlaLlve
underLaken by Lhem on behalf of Lhe company
MoLlvaLlon of Channel
Members
W Cne of Lhe maln facLors whlch keep Lhe dlsLrlbuLors moLlvaLed ls Lhe marg|n usually Lhe marglns
offered by Lhe company are 8 |t |s ra|sed to 8S volume wlse Lhls comes ouL Lo be a blg flgure
slnce Amul's producL has a good demand ln Lhe markeL owever compared Lo Lhe oLher companles
Lhe marglns are sLlll lower slnce Lhe new players ln Lhe markeL offer a much hlgher margln 8uL Lhe
very facL LhaL Amul's producLs have good demand ln Lhe markeL moLlvaLes Lhe dlsLrlbuLors Lo sLock
lL
W Amul belng a cooperaLlve cannoL afford Lo glve heavy moneLary lncenLlves Amul's producLs are
consldered Lo be value for money slnce Lhe company does noL belleve ln charglng hlgh marglns n
facL all moneLary lncenLlves are [usL Lhe shorL run means Lo promoLe Lhe company's producL n
order Lo keep Lhe Channel members moLlvaLed ln Lhe long run Amul bullds on Lhe concepL of
1rade Market|ng# whlch makes Lhe dealers Lhe dlsLrlbuLors belleve LhaL Lhe company's producLs
are worLhy of belng pushed ln Lhe markeL
W 1he company ls organlzlng varlous 1oLal CuallLy ManagemenL lnlLlaLlves workshops ere varlous
counsellng measures are underLaken by Lhe company Lo lmprove Lhe overall worklng of Lhe
dlsLrlbuLlon neLwork
W I|s|on and m|ss|on sLaLemenL Lhe company cascades down Lhe vlslon Lo Lhe varlous channel
members Lhls ls done Lhrough varlous evenLs organlzed by Lhe company aL dlfferenL locaLlons
where Lhe values of Lhe company are made clear and enforced Lo Lhe channel members Also Lhe
facL LhaL Amul belng a cooperaLlve socleLy cannoL afford Lo spend exorblLanLly on such evenLs
Lherefore lL has a very LradlLlonal way of organlzlng Lhese geL LogeLher whlch leaves an lmpacL on
Lhe members
W Amu| yatras Lhls lncludes Laklng Lhe channel members on a gulded Lour of Lhe manufacLurlng and
procurlng faclllLles ln Cu[araL So LhaL Lhe channel members can have an experlence of Lhe worklng
of Lhe company and can plck up some quallLy measures LhaL can help Lhem Lo synchronlze and
lmprove Lhelr own funcLlonlng aL varlous levels 1hls ln Lurn help Lhe company Lo co ordlnaLe Lhe
enLlre value chaln as Lhe channel members undersLand Lhe varlous consLralnLs and llberLles Lhe
company goes Lhrough 1he company has already goL Lhe a[|v Gandh| award for quallLy
8eLallers
W 1rade schemes Lhese are underLaken by Lhe company only for Lhe hard selllng lLems eg ce
creams flavored mllk eLc for Lhese Lhe company ralses Lhe marglns by 2 also schemes llke good
packaglng lncase of buLLer and cheese ls underLaken by Lhe company owever Lhls ls only a shorL
LermlnlLlaLlve Lo push Lhe producLs of Lhe company
W G|ow boards Lhe company puLs up glow boards aL Lhe reLaller and pays Lhe ma[or porLlon of Lhe
cosL
W chedu|e of the sa|esmen Lhey provlde Lhe reLalls wlLh Lhls schedule so Lhe reLallers can pre
esLlmaLe Lhe quanLlLles of Lhe varlous producLs needed
W Infrastructure fac|||tat|on Lhe company faclllLaLes Lhe reLallers Lo buy freezers and frldges by
formulaLlng an easy paymenL program and a commlLmenL Lo buy back Lhe equlpmenL aL a
reasonable prlce when Lhe value of Lhe equlpmenL has depreclaLed
LvaluaLlon of channel
members
W eat p|an Lhls plan ls generaLed for Lhe varlous producL caLegorles le dlary dry
dlary weL uhara and lce cream A weekly schedule ls prepared for varlous markeLs
and Lhe reLallers Lhe Lurnover for each of Lhe producL ls calculaLed for Lhe
wholesale dealers
W Cumu|at|ve performance Lhe performance of Lhe dealers ls averaged ouL over a
perlod of Lhree years where a comparlson ls made of Lhe presenL performance vls
vls Lhe prevlous ones
W 1arget versus ach|evement Lhe performance and Lhe LargeLs are compared and
Lherefore Lhe gaps are ldenLlfled whlch help ln evaluaLlng Lhe Wu and plannlng for
Lhe nexL year as well 1hls ls done for each of Lhe producL caLegory
W 8eal Mllk 8eal cecream
1hank you!