Supply Chain Management Amul

April 22, 2018 | Author: BeingAbhishek Rupawate | Category: Production And Manufacturing, Economies, Business Economics, Marketing, Agriculture
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thiz contains supply chain of amul...

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Supply Chain Management of AMUL

The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a US $1billion turnover institution It is a institution built up with a network of  over 10000 Village Co-operative Societies and 500,000 plus members Managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India

Amul Sales Turnover

Amul is the largest food brand in

India with an annual turnover of US $1068 million (2007-08) Amul is the largest producer of milk

and milk products in the world.

US $ (million)

1994-95

355

1995-96

400

1996-97

450

1997-98

455

1998-99

493

1999-00

493

2000-01

500

2001-02

500

2002-03

575

2003-04

616

2004-05

672

2005-06

850

2007-08

1068

Before Amul 

Polson dairy had monopoly rights



Exploitation of milk producers



Producers had to travel long distances to sell their produce



Had to physically carry their produce



Agents decided the prices and the off-take



Summers- milk would go sour



Winters –surplus milk unsold or sold at very low prices

Foundation for Amul 

Producers of Kaira district formed a cooperative to supply milk directly to Bombay milk scheme



Decentralized milk collection



Village level cooperatives



First modern dairy established at Anand



Indigenous technology and R&D department

Network Structure 

Made up of various stakeholders-suppliers to retailers



Linked by a common interest of remaining competitive in a demanding environment



Global optimum rather than local optimum



Strategies 

Core competency



Help network partners



Information sharing

Dairy Cooperative Structure and details for State of Gujarat

GCMMF 

Gujarat cooperative milk marketing federation



Marketing entity for the state of Gujarat



42 regional distribution centers in India



5,00,000 retail outlets



Exports to more than 15 countries



NDDB (National Dairy Development Board)



NCDFI (National Co-Operative Dairy Federation of India)coordinate dairy activities nationally

AMUL SUPPLY CHAIN Village Cooperative Societies (without Chilling Units) Network Services * Veterinary Services * Animal Husbandry * Animal Feed Factory * Milk Can Producers * Agriculture University * Rural Mgmt Institute * Trucking

Farmers

Village Cooperative Societies (with Chilling Units)

Local Restaurants/Othe r Milk related businesses

Milk Processing Union & Warehouses

Chilling Plants

Warehouses

Wholesalers/C&S Retailers

Home Delivery Contractors

CONSUMERS

CONSUMERS

Milk Sold to Village & Local Residents

The Supply-Demand Linkages

Coordination Mechanisms 

Interlocking control



Coordination agency-unique role of federation



Supplier enhancement and network servicing



Fair share allocation of benefits



Spirit of co-operation

Total Quality Management 

Friday departmental meetings



Training for transformational leadership



Application of hoshinkanri principles



Training for farmers and their families



Retail census

Key Initiatives 

In 1994, decided on IT for competitive edge



Studied its existing functions and operations and formulated an IT plan.



Aligned the Information strategy with business strategy.



Re-designed and re-organized the existing software applications.



Output of one system should be input of another system or vice-versa.

Problems faced 

Indirect connection between Producers and Consumers



Could not forecast productivity accurately and timely



No direct connectivity between zonal, regional, member dairies and head office

Role of Information Technology 









Automatic Milk Collection System Units (AMCUS) CEO of Amul Mr. B.M. Vyas said ”Amul is not a food company ,It is an IT company in the food business.” Initially AMCUS was installed free of cost to convince farmers Enterprise-wide integrated application system (EIAS). Covers market planning, advertising and promotion, distribution network planning, stock control, sales and accounting, budgetary control, quality control management and co-operative service management

Role of IT (contd.) 

Connected its zonal offices, regional offices and members dairies through VSATs.



Each Amul office was connected by e-mail and all send a daily report on sales & inventory to main system.



Geographic Information System (GIS)



Helps in getting zone wise data used for sales and distribution planning.



Includes farmer-member census and animal census data.



Helps in monitoring veterinary health

Amul’s IT Roadmap 

Uses AMCUS for milk collection.



Implemented a customized ERP system which is used in conjunction with GIS



Uses data analysis software for forecasting milk production and increasing productivity.



Has connected all zonal, regional and member dairies through VSAT.



One of the first five organizations to have web presence.



Has made IT education compulsory for all its employees.

Amul’s IT Roadmap (Contd.) 

Milk collection information from 10,000 villages is collected



Dairies can make faster decisions in terms of production and distribution planning



Disease control in 6700000 animals



Linked with 45 distribution offices and 3900 distributors



GCMMF cyber store-125 cities

Thank You

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