DISTRIBUTION NETWORK OF AMUL

PRESENTED BY:-

• CHANDAN SINHA BBA 4598/08BIRLA INSTITUTE OF TECHNOLOGY(NOIDA)

INTRODUCTION

• AMUL means "priceless" in Sanskrit.

• Amul products have been in use in millions of homes since 1946.

• Turnover of Rs. 67113 million in 2008-09.

• Today Amul is a symbol of high-quality products sold at reasonable prices and of the genesis of a vast co-operative network.

PRODUCTS

• Bread spreads.• Cheese range.• Mithai range.• Milk range.• Pure ghee.• Infant milk .• Curd products• Ice creams.

Facts about AMUL.

• Milk is procured twice a day from 2 million producers from Gujarat alone.

• 6 manufacturing units all over India.• The payment is made under twelve hours of

procurement • There are 13328 village cooperative societies • There are 3600 wholesale distributors in the

country• 47 depots

Facts about AMULcontd

• There are approx. 4,50,000 retailers spread all over India• The milk procured per day is 8.4 million liters.

• Where the total capacity of operation is 11.22 million liters per day.

• The peak processing till date has been 6 million liters per day

• These co operative societies are bound to supply there produce only to GCMMF(GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION).

CHANNEL NETWORK.

Amul has got 2 types of channel networks which supports its procurement and distribution aspect, they are:-

1. Procurement channel(upstream flow).

2. Distribution channel(downstream flow).

UPSTREAM FLOW.

MANUFACTURING UNIT

VILLAGE CORPORATE SOCIETY(VCS)

VILLAGE

DOWNSTREAM FLOW.

DEPOT

MANUFACTURING UNIT.

WHOLESALE DISTRIBUTOR.

RETAILER.

MODE OF TRANSPORT

FOR UPSTREAM

1. VILLAGE VCS.

2. VCS MANUFACTURING UNITS.

BICYCLE /FOOT

SPECIAL TRUCKS

MODE OF TRANSPORTCONTD

FOR DOWNSTREAM.

1. MANUFACTURING DEPOTUNIT.

2. DEPOT W.S

3. W.S RETAILER

9 & 18 MT TRUCKS.

INSULATED 3 & 5 MT TRUCK(TATA 407).

AUTO RICKSHAW, RICKSHAW, BICYCLE.

INVENTORY

• Enterprise resource planning: the company at has implemented an ERP program as low as Rs. 3 corers in collaboration with TCS ltd. The company uses it, the data right from the procurement from the farmers till the delivery of goods to the retailers is fed into the system. The software enabling the channel members to use for the synchronized working and best possible utilization of the available resources maintains details regarding the inventory management.

CONTROL OF CHANNEL MEMBERS.

AMUL takes into consideration a host of factors for controlling the channel members.

1. Proper authentication of the channel members.

2. Proper storage facility.3. Insurance of stock.4. Details of all the distributors and dealers

vehicle to be kept with company.5. Good reputation of the channel members.

CONTROL OF CHANNEL MEMBERS contd

6. The company requires the dealers to furnish Advertising & Sales initiative undertaken by them on behalf of the company.

7. Market coverage by the distributors needs to be defined which includes details of Geographic coverage & Outlets per market area

CO-OPERATION AMONG CHANNEL MEMBERS.

• Amul quality circles.

• Pilot salesmen scheme.

• Scheduling of sales.

• Agreement defining rights.

CONFLICTS AMONG CHANNEL MEMBERS.

• Ownership of assets.• Stocking issues.• Replacement of products.• Replenishment.• Packaging.• Margins.• Credit policy.

OBSERVATION

• STRENGTH IN PROCURMENT.• LOYAL COOPERATIVES.• TRANSPORT CHANNEL.• HIGH SALES VOLUME AND LOW MARGIN.• SAME DISTRIBUTION CHANNEL FOR ALL

PRODUCT.

CONCLUSION

• From the following information it is quite evident that distribution channel network of any company plays a vital role in its position in the market.

• AMUL has shown in all the way that why it is one of the leading company in the market for dairy product.

• This accomplishment of AMUL is widely credited to their well thought Distribution channel, which gives them a competitive advantage over other companies.

• AMUL has paved way for others to follow, to have a successful Distribution network.