The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
Amul scm
1. A
PRESENTATION
ON
SUPPLY CHAIN MANAGEMENT
By: Swapnil Lazarus
2. AMUL
Type - Cooperative
Industry - Dairy
Founded - 1946
Key people - Dr. Verghese kurien
Revenue - $ 2.15 billions (2010-2011)
Employee - Marketing arm: 735
Milk producers: 3.03 million
3. KEY FACTS
AMUL means priceless in Sanskrit “Amoolya”
Brand name managed by an apex cooperation organization –GCMMF
World’s biggest vegetarian cheese brand
World’s largest pouched milk brand
Largest food brand in India
Spurred the white revolution in India
Accreditation with 9001 and HACCP certification by QAS, Australia.
4. GCMMF: AN OVERVIEW
Members
13 district cooperative milk producers Union
No. of Producer Members
3.03 million
No. of Village Societies
15,712
Total Milk handling capacity
13.67 million liters per day
5. CONT…
Milk collection (Total - 2010-11): 3.45 billion liters.
Milk collection (Daily Average 2010-11): 9.2 million liters
Milk Drying Capacity: 647 Mts. per day
Cattle feed manufacturing Capacity: 3690 Mts. per day
Sales turnover(2010-11): Rs 9774 Crores
6. Area Covered
o During the year 2010-11, 1000 new Amul Parlors have been
added, taking the total strength to 6000
o We have already started 30 super distributors across 8 states,
covering 520 smaller towns. In the year 2011-12, we plan to
increase the number of super distributors to 150 and cover as
many as 3000 small towns.
11. LOGISTICS
I. Logistics in collection –
9.2 million liters of milk per day
From about 15.712 separate village cooperative societies.
Approximately 3.03 million milk producing member.
II. Logistic in coordination of –
Storing the milk.
Processing the milk.
Distributing the milk.
12. CONT….
III. Supplier logistics –
Weighing the milk.
Determining of fat content.
Calculation of the purchase price.
13. AMUL PATTERN
A three tier cooperative structure:
Dairy cooperative society at village level
Milk union at district level
Milk federation at state level
14. VILLAGE DAIRY COOPERATIVE SOCIETY (VDCS)
Collection of surplus milk & payment based on quality &
quantity.
Providing support services to the members.
Selling liquid milk for local consumers of the village.
Supplying milk to the District Milk Union
15. DISTRICT COOPERATIVE MILK PRODUCERS’ UNION
(MILK UNION)
Procurement of milk from the Village Dairy Societies of
the District.
Arranging transportation of raw milk from the VDCS to the
Milk Union.
Providing input services to the producers.
Conducting training on Cooperative development
16. STATE COOPERATIVE MILK FEDERATION (FEDERATION)
Marketing of milk & milk products
Establish distribution network
Arranging transportation from the Milk Unions to the market.
Creating & maintaining a brand
Providing Technical Inputs, management support & advisory services.
Decide on the products to be manufactured at various Milk Unions
(product-mix)
Conduct long-term Milk Production, Procurement, Processing &
Marketing Planning
Conflict Resolution & keeping the entire structure intact
18. COLD STORAGE NETWORK
Chillers in proximity of villages
Prompt transport to district facilities for further dispatch to
consumers/ processing units.
Chilled trucks to transport processed products
Delivery to local chillers by insulated rail tankers and chilled
trucks.
Refrigerators and freezers with retailers and departmental stores
to retain freshness.
19. 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 unions monitored the supplies of milk and the distribution of
finished products.
20. DIRECT RETAILING
Amul has recently entered into direct retailing through
"Amul Utterly Delicious" parlors created in major
cities.
Amul has plans to create a large chain of such outlets
to be managed by franchisees throughout the country.
More than 2000 parlor with a turnover of 200 crore.
21. 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