Amul Final

THE COMPANY • • • • •

Amul means priceless in Sanskrit Since 1946 Market leaders for Amul butter Turnover of 25 billion Amul is a symbol for • • • •

High quality at reasonable prices Genesis of a vast co-operative network Triumph of indigenous technology Farmer’s organization

THE PRODUCTS • • • • • • • •

Bread spreads Cheese ranges UHT milk Milk powders Fresh milk Ice creams Chocolates Mithaiee range

SCM and Market Logistics • Implementation of an ERP program as low as Rs. 3 corers in collaboration with TCS ltd. • Synchronized working and best possible utilization of the available resources • Maintains details regarding the inventory management.

THE CHANNEL NETWORK • Distribution channel- downstream flow

• Procurement channel- upstream flow

DOWNSTREAM FLOW • First leg • Manufacturing units to company depots using 9 and 18 MT trucks • Frozen food-below 18C • Dairy wet-0-4C

• Second leg • Depots to WDs • Transport through insulated 3 and 5 MT TATA 407’s

• Third leg • WDs to retailers • Transport through rickshaws according to the beat plan

UPSTREAM FLOW • Milk is taken to VCS by farmers by bicycles • Transportation of milk from the cooperatives to the manufacturing units through trucks equipped with tankers equipped to carry milk

Selection Criteria of the Channel Members • Authentication by way of identity • Proof of solvency-details of the bankers • Safety of inventory by getting the company stock insured • Proper storage space in forms of refrigerators • The company requires the dealers to furnish any Advertising & Sales initiative undertaken by them on behalf of the company

Selection Criteria Conti… • Details of delivery vehicles • Competent salesman • Details of the product kept of other companies have to be provided • Dealers of the company must carry a good reputation • Market coverage of distributors need to be defined

Motivation Of Channel Members • Distributors – – – – –

Margins Trade marketing Total quality management Vision and mission statemnts Amul yatras

Motivation Cont… • Retailers – – – –

Trade schemes Glow boards Schedule of the salesman Infrastructure of facilitation

Evaluation of Channel Members • • • •

Beat plan Cumulative performance Target versus achievement Other criteria

Conflicts among Channel Members • • • • • • •

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

Cooperation Among Channel Members • • • •

Amul quality circles Pilot salesman scheme Scheduling of sales Agreement defining rights

Observations • • • • • •

Strength in its procurement Leverage on the relationship Strength in transport channel No promotional schemes undertaken Non profit driven organization Push strategy

Comments and Suggestions • • • • • •

Amul should go in for exclusive outlets Push carts Trade promotions Home delivery Increase margins Additional salesman on field

Thank You!!