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 t he 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 distributi d istribution on of o f 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 justin-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:
Farmers 2.2 million Numbers
Production Of Milk
Village Cooperative Societies
Member Unions
10,673
12 Units
Cooperative
10000 emp
Milk Collection
Milk Processing
GCMHFL 700 emp
Marketing
Distribution
Retailers
3,000
5, 00,000
Distribution
Retailing
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
Raw Material
Consumer
Customer
Supplier
Manufacturing
Distribution
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 descr ibe 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 ro le in that. It handles all the marketing for AMUL product s. 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.
