PRESENTED BY:GOVIND MENON

ABHINAV MATHURKANIK VIJAY

AGENDA

• Introduction• The SUCCESS Factors• The 3-Tier Business Model• Channel Network• Mode of Transport• Inventory Management• Reverse Logistics• 3PL & 4PL• Co-ordination & Conflict Management• Conclusion

INTRODUCTION

• Anand Milk Union Limited is the short form for what we know as AMUL.• Formed in 1946, the brand AMUL is managed by GCMMF( Gujarat

Cooperative Milk Marketing Federation)• Dr. Varghese Kurien, former Chairman of GCMMF- the man behind

the success of AMUL.• The brand name “AMUL” is derived from the Sanskrit word “AMULYA”

meaning “PRICELESS”.• AMUL has made INDIA the largest producer of milk and milk products

in the world.

The SUCCESS Factors

• Low Cost Strategy• Easy Availability• Strong Distribution of Network• Diversification of Products• Promotional Strategies

The 3-Tier Business Model

Dairy Cooperative Society

District Cooperative Milk Producer's Union

State Cooperative Milk Federation

CHANNEL NETWORK

• 2 types of channel networks which supports its procurement & distribution aspects, they are:

1. Procurement channel (Upstream Flow)

2. Distribution channel (Downstream Flow)

UPSTREAM FLOW

MANUFACTURING UNIT

VILLAGE CORPORATE SOCIETY (VCS)

VILLAGE

DOWNSTREAM FLOW

MANUFACTURING UNIT

DEPOT

WHOLESALE DISTRIBUTORRETAILER

Mode of TRANSPORT

For UPSTREAM :

1. Village VCS

2. VCS MANUFACTURING UNITS

BICYCLE/FOOT

SPECIAL TRUCKS

Contd…For DOWNSTREAM:

MANUFACTURING DEPOTUNIT

DEPOT WHOLESALERS

WHOLESALERS RETAILERSAUTO RICKSHAW, RICKSHAW,

BICYCLE

INSULATED 3 & 5 Mt TRUCKS

9 & 8 Mt TRUCKS

INVENTORY MANAGEMENT

ENTERPRISE RESOURCE PLANNING1. The company has implemented an ERP Program in collaboration

with TCS Ltd.

2. The data right from the procurement till the fill delivery to the retailers is fed into the system.

3. This enables the channel members to best utilize the resources and maintain inventory in an efficient manner.

REVERSE LOGISTICS

MILK CHURN from dairy to VCS

POUCH MILK TRAY from retailer to dairy

BOTTLEfrom retailer to dairy

DAMAGED PRODUCTS from customer to retailer then to dairy

3PL & 4PL

WHAT IS 3PL & 4PL?

• Third-party logistics (3PL) service providers are companies who provide a range of logistics activities for their clients. These are companies independent from the buyers and sellers but takes over some of their logistics function.

• Fourth-party logistics (4PL) service providers are companies who manage and direct the activities of 3PLs, serving as an integrator.

3PL

• The job of milk collection has been outsourced to third-party logistics service suppliers (3PLs).• Over 3000 Automatic Milk Collection System Units (AMCUS) have

been installed at village societies. AMCUS helps in collecting 6 million (2006-07) liters of milk from 3 million members approximately. • AMCUS also helps monitoring and managing collection cycle,

reduction in pilferages, reduced human errors, on-the-spot payments to farmers, wastage reduction, transparency of operation and operational integration.

Co-ordination

• Large number of organisations and entities in the supply chain

• GCMMF and the unions play a major role in achieving control

• Interlocking control - The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies

• The federation handles the distribution of end products and coordination with retailers and the dealers.

• The unions coordinate the supply side activities.

Conflict Management

• Ownership of Assets• Stocking Issues• Replacement products• Packaging• Margins • Credit Policy

CONCLUSION

• From the above information it is quite evident that distribution channel plays a vital role in its positioning in the market.• AMUL has shown in all the ways that why it is one of the leading

company in the market for dairy products.• This accomplishment of AMUL is widely credited to their Distribution

Channel, which gives them a competitive advantage over their competitors.• AMUL has paved way for others to follow , to have a SUCCESSFUL

Distribution Network.

THANK YOU!!!