LOGISTICS OF
Presented by:-
Farhan Azmi
AMUL
Type - Cooperative
Industry -
Founded - 1946
Key people -
Revenue - INR 67.11billion (2008-2009)
Employee - Marketing arm: 735
Dairy
Dr. Verghese kurien
Milk producers: 2.8 million
KEY FACTS
AMUL means priceless in Sanskrit Amoolya
Brand name managed by an apex cooperation organization GCMMF
Worlds biggest vegetarian cheese brand
Worlds largest pouched milk brand
Largest food brand in India
Spurred the white revolution in India
Accreditation with 9001 and HACCP certification by QAS, Australia.
GCMMF: AN OVERVIEW
Members
13 district cooperative milk producers Union
No. of Producer Members
2.79
million
No. of Village Societies
13,328
Total Milk handling capacity
11.22
million liters per day
CONT
Milk collection (Total - 2008-09): 3.05 billion liters.
Milk collection (Daily Average 2008-09): 8.4 million liters
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing Capacity: 3500 Mts. per day
VALUE CHAIN PROCESS
AMUL PRODUCTS DIVERSIFICATION
PRODUCTS
Bread Spreads
Milk Drinks
Powder Milk
Fresh Milk
Cheese
For Cooking
Chocolate
MARKET SHARE
PRODUCT SHARE
Amul
Ice
butter - 86%
cream - 36%
Chocolate
Ghee
- 10%
- 20%
Skimmed
milk powder - 40%
PROBLEMS TO BE ADDRESSED
I.
Logistics in collection
6 million liters of milk per day
From about 10,600 separate village cooperative societies.
Approximately 2.8 million milk producing member.
II.
Logistic in coordination of
Storing the milk.
Processing the milk.
Distributing the milk.
CONT.
III.
Supplier logistics
Weighing the milk.
Determining of fat content.
Calculation of the purchase price.
EVOLUTION OF IT
The evolution of IT in AMUL was took place in the guidance of
DR.B.M Vyas.
The milk collection center at village cooperative societies, were first
automated.
Application and utilization of GIS.
Data analysis software utilization for milk production estimation and
increasing productivity.
VATS network between all the level of distribution network and
GCMMF.
IMPLEMENTATION
Amul
start implementation of ERP in phases.
Automatic
milk collection system units(AMCUS) at
village society were installed in the first phase to
automate milk production logistics.
AMCUS
facilities to capture member information, milk
fat content, volume collected, and amount payable to
each member electronically.
CONT
Indian Institute of Management Ahmedabad supplemented
Amuls IT strategy by providing an application software Dairy
Information System Kiosk(DISK) to facilitate data analysis and
decision support in improving milk collection.
The kiosk would also contain an extensive database on the
history of cattle owned by the farmers, medical history of the
cattle, reproductive cycle and history of diseases.
Farmers can have access to information related to milk
production, including best practices in breeding and rearing
cattle.
As a large amount of detailed history on milk production is
available in the database, the system can be used to forecast
milk collection and monitor the produce from individual sellers.
AUTOMATIC MILK COLLECTION SYSTEM
UNITS (AMCUS)
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 six 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.
TOTAL QUALITY MANAGEMENT MODEL
There is improvement in quality of milk in term of acidity and sour
milk.
Sabor milk union records show 2% reduction in the amount of the
sour milk received from the union.
Improved microbiological quality of upcoming raw milk in the form of
methylene blue reduction.
This gives better shelf life to the product.
Program like Red Tag Day was launched for cleaning the milk
collection center.
AMUL PATTERN
A three tier cooperative structure:
Dairy
cooperative society at village level
Milk
union at district level
Milk
federation at state level
VILLAGE DAIRY COOPERATIVE SOCIETY
(VDCS)
Collection
of surplus milk & payment based on quality &
quantity.
Providing
Selling
support services to the members.
liquid milk for local consumers of the village.
Supplying
milk to the District Milk Union
DISTRICT COOPERATIVE MILK PRODUCERS
UNION (MILK UNION)
Procurement
of milk from the Village Dairy Societies of
the District.
Arranging
transportation of raw milk from the VDCS to the
Milk Union.
Providing
input services to the producers.
Conducting
training on Cooperative development
CONT..
Providing management support & regular supervision to the
VDCS.
Establish Chilling Centers & Dairy Plants for processing the
milk.
Selling liquid milk & milk products within the District.
Process milk into various milk & milk products.
Decide on the prices of milk to be paid to milk producers.
GCMMFS SUPPLY CHAIN
DISTRIBUTION PROCESS
Company
Dealer Franchisee
Wholesaler
Retailer
Shopkeeper
Consumers
THE CHANNEL NETWORK
Procurement
Distribution
channel- upstream flow
channel- downstream flow
COLD STORAGE NETWORK
Chillers
in proximity of villages
Prompt
transport to district facilities for further dispatch to
consumers/ processing units.
Chilled
trucks to transport processed products
Delivery
to local chillers by insulated rail tankers and chilled 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.
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
LESSONS FOR MANAGING LARGE NETWORKS
Long
term perspective
Simultaneous
Network
Cost
development of markets and suppliers.
partnership Vs. ownership
leadership and value for money
Technology
and Information Sharing
DIRECT RETAILING
Amul
has recently entered into direct retailing through
"Amul Utterly Delicious" parlors created in major cities.
Amul
has plans to create a large chain of such outlets
to be managed by franchisees throughout the country.
More
than 2000 parlor with a turnover of 200 crore.
EXPANSION PLAN
Tie up with the Wal Mart
Export is in 15 countries.
Plan to open 10000 Amul parlor by the end of the 2010.
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..
