ANALYSIS OF SUPPLY CHAIN MANAGEMENT

STRATEGIES BEING USED BY AMUL COMPANY

SUBMITTED BY:
NAME: PUSHPITA PAUL
PROGRAM: MBA (General)
ID NO. : 21IUT0160092
BATCH: 2021-2023
A report submitted in partial fulfillment of the
requirement of the course OPERATION MANAGEMENT
of MBA program, Batch 2021-2023

THE ICFAI UNIVERSITY TRIPURA

SUBMITTED TO:
Prof. Tathagata Dasgupta
Faculty of Management and commerce
 ACKNOWLEDGEMENT
I would like to express my special thanks to the faculty Prof. Tathagata
Dasgupta who gave me the golden opportunity to do this wonderful project on
the topic Analysis of Supply Chain Management Strategies being used by Amul
company , which also helped me in doing a lot of research and I came to know
about many things I am really thankful to them.

Date: 13.06.2022 Pushpita Paul

ID No. 21IUT0160092
 TABLE OF CONTENT
SL.NO. PAGE
NO.
1. INTRODUCTION 1

2. COMPANY PROFILE 2

3. OBJECTIVE 3

4 METHODOLOGY 4

5 ANALYSIS 5-7
6 FINDINGS 8
7 CONCLUTION 9

8 REFERENCES 10
 INTRODUCTION
Supply chain management aims to enable an efficient flow of right products
to the right places at the right time so as to create value to the customers while
making sure to minimize costs for the company.

Supply chain network has venture to get a good or services from the
suppliers to the client. Supply chain management is an essential part for
organizations, and numerous organizations to have the most enhanced supply
chain network on the grounds that it normally means lower expenses for the
organizations. Supply chain network incorporates various organizations, for
example, suppliers, makers, and the retailers.

Dairy product means reduced time between the production and the
delivery process. This study focuses on how these major dairy product brands
mainly Amul dairy overcome the major challenges by adopting supply chain
management strategy. Supply Chain Management of Amul dairy is a proof to that
which globally recognized as a successful and extensive retail giant.

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 COMPANY PROFILE
Amul is an Indian dairy state government cooperative society, based at
Anand in Gujarat. Formed in 1946, it is a cooperative brand managed by
the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF). Amul
spurred India's White Revolution, which made the country the world's
largest producer of milk and milk products, word AMUL stands for Anand
Milk union limited.

Type State Government

Cooperative society
Food processing
Industry
FMCG
Founded 1946;76 years ago
Founder Tribuvandas Patel
Headquarters Annd, Gujarat, India
Area served Worldwide
Key people R S Sodhi
(Managing Director)
Products Dairy

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 OBJECTIVES
The overall purpose of this study is analysis of the supply chain
management used by Amul Dairy to overcome the challenges faced by
them in dairy product retail network.

3
 METHODOLOGY
The research conducted is qualitative in nature. Secondary research was
carried with the help of literature, which included books that generally discuss
supply chain management topics and also referring the diary industries.
Information about Amul company that have been derived from secondary
research.

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 ANALYSIS
Amul’s Supply Chain Management:
Amul is a dairy cooperative in the western India that has been primarily
responsible, through its innovative practices, for India to become the largest milk
producer.

Everyday Amul collects 4,47,000 liters of milk from 2.12 million farmers,
converts the milk into branded, packaged product, and delivers goods worth Rs. 6
crore to over 5,00,000 retailers outlets across the country.

The distribution network:

Amul products are available in over 5,00,000 retail outlets across
India through its network of over 3,500 distributors. There are 47 depots
with dry and cold warehouses to buffer inventory of the entire range of
products. Wholesale dealers carry inventory that is just adequate to take
care of the transit time from the branch warehouse to their premises. This
just-in-time inventory strategy improves dealers return on investment.
Largest cold chain:
Amul has the largest cold chain network in India (i.e. 18000
refrigerators) as compared to any other company. Components of milk are
water, SNF and solids. In order to avoid wastage Amul converts the milk in
to SNF and milk solid by evaporating the water, which comprises up to 60-
70% of milk contents. This is only possible if the distribution channel right
from the producer to the consumer is well organized.
Core activities and third-party service providers:
Amul chose a strategy to focus on core dairy activities and rely on
third parties for other complementary needs. For example, Amul focused
on the processing of liquid milk and conversion to a variety of dairy
producers and associated research and development. On the other hand,
logistics of milk collection and distribution of products to customers was
managed through third parties.

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Assistance to stakeholders:
To the wholesalers and retailers, Amul offers reasonable margins on
a high volume good. It offers support in demand prediction, reducing the
potential bullwhip effects that might arise from inexperienced sales
partners. It also offers easy repayments programs for capital investments in
infrastructure by the retailers.
Increasing the supply of milk:
Increasing the supply of product leads to better economies of scale.
To this end, the unions provide various aids to the milk producers (like
cattle-feed, technical training) obtained at a low cost due to large scale
sourcing, to increasing supply. Aids are also aimed at overall community
development.
Technology initiatives:
An automatic milk collection system was established that could
identify and test the quality/ quantity of milk. This leads to time-saving
since over 1000 producers enter a village cooperative each day and
increased transparency.

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 FARMERS

Village cooperative Village cooperative Local

societies( with societies( without Milk sold to village
restaurants/
chilling unites) chilling units) and local residents
other milk
related business

Net work services

Milk processing
 Veterinary Chilling plants
union and
services
warehouses
 Animal
husbandry
 Animal feed
factory
 Milk can GCMMF
producers Warehouses
 Agriculture
university Wholesalers/ C&G
 Rural
managemen
t institutions
RETAILERS
 Tracking HOME DELIVERY
facilities

CONSUMERS
CONSUMERS

Supply Chain of Amul

7
 FINDINGS
 Amul provides good quality of cattle feed to amul milk producers.
 Amul focuses on that to maintaining good rates in flush season.

8
 CONCLUTION
The benefits of efficient supply chain management include reduction in lead
time faster inventory turnover accurate forecasting increased warehouse space
reduction in safety stock and better working capital utilization. It also helped in
reducing the dependency on distribution center management personnel resulting
in minimization of training costs and error.

Quick response supply chain helps retailers like AMUL dairy to move their
goods from production to distribution over a short period of time. Such an
effective and efficient quick response model enables these retailers to avoid stock
outs and ensures continuous rotation of latest products for consumers and this
would in turn increases store visits and full price.

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 REFERENCES
 Amul - Wikipedia
 https://en.wikipedia.org/wiki/Amul

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