Supply Chain Management of AMUL

SUPPLIERS

GCMMF’S SUPPLY CHAIN

Processing:

After the union received the milk, it was tested and if it was found to be of good quality, it was sent for processing. If the milk was found to have high acidity, it was used to make buttermilk. Raw milk was sent through a filter and clarifier and was pasteurized. For pasteurization, milk was treated at high temperatures for a specified. This helped in destroying the pathogens and in maintaining the quality. After pasteurization, the milk was sent through a separation machine. Here the cream was separated and skimmed milk was obtained. According to the demand, the unions packed the milk after it was pasteurized and sent for distribution. The cream was marketed as Amul Fresh cream.

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 VCS constantly monitored the deliveries of the milk collected and ensured that the milk was picked up on time. The unions monitored the supplies of milk and the distribution of finished products.

Ware Housing:

Amul products are available in over 500,000 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. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the

supply chain and it also minimizes dumping. 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 (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operation.

MILK PROCESSING BLOCK

SUPPLY CHAIN EXPLANATION WITH DIAGRAM

Definition of Value Chain:

Village Cooperative Member GCMHFL Distribution Retailers Farmers Societies Unions

Production Milk Milk Marketing Distribution Retailing

Of Milk Collection Processing

2.2 million Numbers

10,673 Cooperative

12 Units 10000 emp

700 emp 3,000 5, 00,000

As per the above diagram there are the first components is raw material:In our company the raw materials are milk, powder for ice creams manufacturing, different types of flavors for ice creams, packaging material, sugar etc. required by the company for manufacturing. In this step GCMMF play a very important role it procures milk from villages and for this it develops three types of system and that is societies at village level, district level and state level.

SUPPLY CHAIN MODEL

Second component is suppliers are the farmers and other raw material for manufacturing the ice creams are provided by MAHAN PROTEINS LTD., IDEAL ICE CREAMS and BHARAT ESSENCE.This component is manufacturing process which is describe above. In milk process there are mainly five steps are required and i.e. homogenization, pasteurization, adding vitamins, packaging, storing. In this process there are also requirement of warehouse for storing the product which already made and also for the raw material.

The next step is the distribution channel in which GCMMF plays very important role in that. It handles all the marketing for AMUL products. GCMMF's products were marketed through 50 sales offices located across India to 4,000 stockists. These stockists supplied the products to more than 500,000 retail outlets.

The next step is the customers in this category there are restaurants includes. Also the retail shops and whole sellers are included.

The last step is the consumer in which the actual hose hold are included in this category.

Supplier

Manufacturing

Distribution

Customer

Consumer

Raw Material