Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    Distribution Network of Amul

    Uploaded by

    Chandan Sinha
    Amul has a distribution network that involves procuring milk twice daily from 2 million producers through 13,328 village cooperative societies. The milk is transported to 6 manufacturing units via special trucks. Amul's products reach over 450,000 retailers across India through a network of 3600 wholesale distributors and 47 depots. Amul has implemented an ERP system to manage inventory across its extensive distribution channels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Distribution Network of Amul

    Uploaded by

    Chandan Sinha
    3K views19 pages
    Amul has a distribution network that involves procuring milk twice daily from 2 million producers through 13,328 village cooperative societies. The milk is transported to 6 manufacturing units via special trucks. Amul's products reach over 450,000 retailers across India through a network of 3600 wholesale distributors and 47 depots. Amul has implemented an ERP system to manage inventory across its extensive distribution channels.

    Original Title

    AMUL Distribution

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Amul has a distribution network that involves procuring milk twice daily from 2 million producers through 13,328 village cooperative societies. The milk is transported to 6 manufacturing units via special trucks. Amul's products reach over 450,000 retailers across India through a network of 3600 wholesale distributors and 47 depots. Amul has implemented an ERP system to manage inventory across its extensive distribution channels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    3K views19 pages

    Distribution Network of Amul

    Uploaded by

    Chandan Sinha
    Amul has a distribution network that involves procuring milk twice daily from 2 million producers through 13,328 village cooperative societies. The milk is transported to 6 manufacturing units via special trucks. Amul's products reach over 450,000 retailers across India through a network of 3600 wholesale distributors and 47 depots. Amul has implemented an ERP system to manage inventory across its extensive distribution channels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    DISTRIBUTION

    NETWORK OF AMUL
    PRESENTED BY:-
    • CHANDAN SINHA BBA 4598/08
    BIRLA 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 AMUL contd

    • 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

    BICYCLE /FOOT
    1. VILLAGE VCS.

    2. VCS SPECIAL TRUCKS MANUFACTURING


    UNITS.
    MODE OF TRANSPORT CONTD

    FOR DOWNSTREAM.
    9 & 18 MT TRUCKS.
    1. MANUFACTURING DEPOT
    UNIT.
    INSULATED 3 & 5 MT
    TRUCK(TATA 407).
    2. DEPOT W.S

    AUTO RICKSHAW,
    RICKSHAW, BICYCLE.
    3. W.S RETAILER
    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.

    You might also like