SCM of Amul

7/29/2019 SCM of Amul

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SUPPLY CHAIN

MANAGEMENT


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GROUP MEMBERS

Arumugam

Bharath

Pachaiyappaan

Vivek


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AMUL

Type - Cooperative

Industry - Dairy

Founded - 1946

Key people - Dr. Verghese kurien

Revenue - INR 70 billion

Brand name managed by an apex cooperation organization GCMMF

Amul initiated the dairy co-operative movement in India and an apex co-

operative organization called Gujarat Co-operative Milk MarketingFederation(GCMMF) was formed.

Largest food brand in India.

Accreditation with 9001 and HACCP certification by QAS, Australia.


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GCMMF: AN OVERVIEW

Members

12 district cooperative milk producers Union

No. of Producer Members 2.2 million

No. of Village Societies

10,675

Total Milk handling capacity

11.22 million liters per day


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CONT

Milk collection (Annual Average): 3.05 billion liters.

Milk collection (Daily Average): 8.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3500 Mts. per day


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VALUE CHAIN PROCESS


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LOGISTICS ACTIVITIES

Logistics in collection

I. 8.4 million liters of milk per day

II. From about 10,675 separate village cooperative societies.III. 2.2 million milk producing member.

Supplier logistics

I. Weighing the milk.

II. Determining of fat content.

III. Calculation of the purchase price.


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CONT.

Logistics in coordination of

Storing the milk. Processing the milk.

Distributing the milk.


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MILK COLLECTION UNIT

The milk collection center at village cooperative societies areautomated.

Automatic milk collection system units(AMCUS) at village societywere installed to automate milk production logistics.

AMCUS facilities to capture member information, milk fatcontent, volume collected, and amount payable to each memberelectronically.


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SHIFTPROCESS

The company zeroed in on ERP as means to keeppace with dynamically changing businessenvironment.

TCS was hired to guide them in its implementation.The project was named as Enterprise Wise Integrated

Application System (EIAS).

Amul also connected its zonal offices, regional officesand members dairies through VSATs.


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REAPING RETURNS

Radical changes in business processes - eliminatingmiddlemen .

Improved delivery mechanisms and transparency of businessoperations.

Due to this process, AMUL is able to collect 8.4 million litres ofmilk per day.

Huge reduction in processing time for effecting payments tothe farmers from a week to couple of minute.

Processing of 10 Million payments daily, amounting totransactions worth USD 3.78 million in cash.


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CONT..

Movement of 5000 trucks to 200 dairy processing plants twice a dayin a most optimum manner.

Practicing just in time supply chain management with six sigmaaccuracy.

Online order placements ofAmuls products on the web.

Distributors can place their orders on the website.

Amul exports products worth around US$ 25 million to countries inWest Asia, Africa and USA.


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GCMMFS SUPPLY CHAIN


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THE CHANNEL NETWORK

Procurement channel- upstream flow

Distribution channel- downstream flow


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PROCUREMENT

Activities at the village level comprised developing and servicing theVCSs.

Increasing milk collection, procuring milk, and transporting it to thechilling and processing units twice a day.

The VCSs provided the farmers with good quality animal feed,

fodder, and other services like veterinary first aid.


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PROCUREMENT CHANNEL

On an average around thousand farmers come to sell milk attheir local co-operative milk collection center.

Each farmer has been given a plastic card for identification.

At the milk collection counter, the farmer drops the card into a

box and the identification number is transmitted to a personalcomputer attached to the machine.

The milk is then weighed and the fat content of the milk ismeasured by an electronic fat testing machine.

Both these details are recorded in the PC. The computer thencalculates the amount due to farmer on the basis of the fatcontent.

The value of the milk is then printed out on a slip and handedover to farmer who collects the payment at adjacent window.


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COLD STORAGE NETWORK

Chillers in proximity of villages

Prompt transport to district facilities for further dispatch toconsumers/ processing units.

Chilled trucks to transport processed products

Delivery to local chillers by insulated rail tankers and chilledtrucks.

Refrigerators and freezers with retailers and departmental stores

to retain freshness.


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DISTRIBUTION

GCMMF coordinated with various unions to get a regular supply of milkand dairy products.

The processed milk and dairy products were procured from district dairyunions 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 offinished products.


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DOWNSTREAM FLOW

First legManufacturing units to company depots using 9 and 18 MT

trucks

Frozen food-below 18C

Dairy wet-0-4C

Second legDepots to WDs

Transport through insulated 3 and 5 MT TATA 407s

Third legWDs to retailers

Transport through rickshaws according to the beat plan


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REVERSELOGISTICS

MILK CHURN from dairy to VCS

POUCH MILK TRAYfrom retailer to dairy

BOTTLEfrom retailer to dairy

DAMAGED PRODUCTSfrom customer to retailer then to dairy


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EXPANSIONPLAN

Tie up with the Wal Mart

Export to more countries.

Plan to open more than 10000 Amul parlor.


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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


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AMUL (RECENTLYINNEWS)

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.


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THANKYOU..

SCM of Amul

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