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
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