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Sri Sharada Institute of Indian Management-Research
7,InstitutionalArea,Phase-II,VasantKunj,New Delhi 70
Website:www.srisiim.org
Sales & Distribution Management
(DM401EM)
Project Report On
Sales Management & Distribution in “AMUL”
Submitted To
Prof. Sanjeev Sareen
Submitted by:
Rahul Tuli (20110114)
Swetank chaturvedi (20110124)
PGDM (2011-13)
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DECLARATION
We Swetank Chaturvedi,Rahul Tuli student of PGDM (2011-13) hereby declare
that we have completed this project of Consumer Behavior. The information
submitted is true to the best of our knowledge.
Rahul Tuli (20110114)
Swetankchaturvedi (20110124)
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ACKNOWLEDGEMENT
This project report bears the imprint of many people and without their support it
would not have existed. First of all I would like to express my sincere indepthness
and profound sense of gratitude to my mentors whose continuous support in all
manners had made me capable to complete this project.
In the completion of this project report, I have received encouragement and
support from various quarters, which need special mention.
I owe the enormous intellectual debt towards my CMD Swami (Dr.) Parthasarthy
and my faculty guide, Prof. Sanjeev Sareen for her guidance and enriching my
thoughts in this field from different perspective.
Last but not the least, I would like to take this opportunity to acknowledge my
friend another faculty members for their motivation, teachings and guidance for
making this project come to the present stage.
Rahul Tuli (2011011)
Swetank chaturvedi (20110124)
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TABLE OF CONTENTS
Serial no.
Topic
Page no.
1.
About Amul
05
2.
Amul Offerings
06
3.
Sales Force Management in Amul
09
4.
Training and Development
12
5.
Motivational strategy
14
6.
Compensation policies
16
7.
Distribution Networks
19
8.
Supply Chain Mnangement
22
9.
bibliography
27
5
ABOUT AMUL
AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the brand
name “Amul,” (Anand Milk Union Limited) from the Sanskrit “Amoolya,” Variants, all
meaning "priceless", are found in several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya
have made Amul a leading food brand in India. Today Amul is a symbol of many things. Of
high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of
the triumph of indigenous technology, of the marketing savvy of a farmers' organization and
have a proven model for dairy development. And have a proven model for dairy development
(Generally known as “ANAND PATTERN”).
AMUL has been able to:
 Produce an appropriate blend of the policy makers farmers board of management and the
professionals: each group appreciating its rotes and Limitations,
 Bring at the command of the rural milk producers the best of the technology and harness
its fruit for betterment.
 Provide a support system to the milk producers without disturbing their agro economic
systems,
 Plough back the profits, by prudent use of men, material and machines, in the rural sector
for the common good and betterment of the member producers and
 Even though, growing with time and on scale, it has remained with the smallest producer
members. In that sense. Amul is an example par excellence, of an intervention for rural
change.
Today, twelve dairies are producing different products under the brand name Amul.
Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud
for Gujarat and whole India.
Co-operative is generally operated not for the profit but for the betterment of consumer and
products. Their main objective is to serve people of the society with good quality of product with
as much as low price.
“AMUL” is the successful co-operative sector. The brand name itself indicates how AMUL is
separated over the country and world. AMUL gets so many awards for its productivity and
performance. Amul is Asia’s no.1st and 2nd in world, which is a matter of proud for India. In
our country every men, women and now children know what AMUL is. This makes the
popularity and contribution of the dairy industry.
AMUL is co-operative organization and they also doing social works. They provide employment
to the village people. They also provide health center and education facility to the villagers.
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AMUL has a three level structure. It has following way:
Co-operation among this 3 level is necessary for achieve goal
AMUL’S OFFERINGS:
Breadspreads:


Amul Butter
Amul Lite Low Fat Breadspread
Cheese Range:

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Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Mozarella Cheese
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
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
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Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
UHT Milk Range:


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Amul Taaza 3% fat Milk
Amul Gold 4.5% fat Milk
Amul Slim-n-Trim 0% fat milk
Amul Chocolate Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Pure Ghee:


Amul Pure Ghee
Sagar Pure Ghee
Infant Milk Range:



Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
Milk Powders:




Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk
Fresh Milk:




Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 3% fat
Amul Smart Double Toned Milk 1.5% fat
Curd Products:
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

Amul Masti Dahi (fresh curd)
Amul Butter Milk
Amul Ice creams:



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
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Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
Utsav Range (Anjir, Roasted Almond)
Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)
Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)
Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
Millennium Icecream (Cheese with Almonds, Dates with Honey)
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista
Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
Cool Candies (Orange, Mango)
Cassatta
Tricone Cones (Butterscotch, Chocolate)
Megabite Almond Cone
Frostik - 3 layer chocolate Bar
Fundoo Range - exclusively for kids
Slim Scoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)
Chocolate & Confectionery:



Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Amul Éclairs
Brown Beverage:

Nutramul Malted Milk Food
Marketing activity of AMUL is performed by GCMMF (Gujarat Co- operative Milk Marketing
Federation). Total 90% of AMUL’s products marketed by except for liquid milk. Till 1960
AMUL was marketing their product on its own. But there were many problems against such
direct marketing and therefore the idea of marketing federation was turned into establishment of
GCMMF. Thus the federation was established in1972 for marketing the product of all dairies in
Gujarat.
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SALES FORCE MANAGEMENT IN AMUL
Recruitment
Recruitment forms the first stage in the process which continues with selection and placement of
the Sales force in the company. The selection process starts with the intent for recruitment by the
sales department head. These intents specify the reasons why recruitment is to be made. These
intents are conveyed to the personnel department. The personnel department has to check the
financial implication of the recruitment to find out whether the additional expenses would be
within the budgetary provision if other allowances were determined.
It is a positive action as it involves inviting people to apply. Recruitment has been regarded as
the most important function because it helps in bringing the right people to the company.
There are two types of Recruitment sources followed by AMUL:i. Internal Sources.
ii. External Sources.
✔ Internal Source:Internal sources include personnel already on payroll of the organization filling a vacancy. It can
be done by means of promotions which increases the general level of moral of existing
employees and make them to provide more reliable information about the capable candidates.
Following are included in this source:i. Present Permanent Employees.
ii. Employee Referrals.
iii. Former Employees.
✔ External Source:These source lie outside the organization in Amul they consider following sources for
recruitment.
i. Advertisement.
ii. Campus Interview
iii. Employment Exchange.
iv. Unsolicited Application.
➢Advertisement:For the recruitment, AMUL consider this particular source. They give Advertisement in local
newspaper and other newspaper for the post in the sales department with complete job
description.
➢Campus Interview:This is second option that AMUL consider. Recruiters are sent to educational institution where
they find suitable candidate. AMUL go through this option. They have various famous
institutions like IIM, IRMA etc. But this type of recruitment is done for the upper level positions
i.e. Assistant managers, managers etc.
➢Employee Exchange:An employment exchange is an office set up for bringing together as quickly as possible
candidates searching for employment and employees looking for prospective employees.
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➢Employee Referrals:AMUL also considers this option for recruitment. Friends and relatives of present employees are
also a good source from which employee may be drawn.
➢Unsolicited Application:Some candidates send in their application without any invitation from the organization. A
recruiter can use these unsolicited applications for appointment and when vacancies arise.
AMUL considers this option also for recruitment of the sales force in the firm.
Requirement of Recruitment:There are so many reasons for recruitment process. Some of them in AMUL are:


New Expansion.
New Planning.
Retirement.
➢Selection:Selection either internal or external is a deliberate effort of the organization to select a fixed
number of personnel from a large number of applicants. The primary aim of employee selection
is to choose those persons who are most likely to perform their jobs with maximum effectiveness
and to remain with the company. Thus, in selection, an attempt is made to find a suitable
candidate for the job. In doing so naturally many applicants are rejected. This makes selection a
negative function.
Following are the steps followed are as under:candidate.
During this, various steps like Biographic Data checking, Education, Experience, Personal
Detail, Aptitude Test, Interest Test, Intelligence Test, Performance Test, Personality Test are
considered. Different types of interviews are conducted like:
➢Preliminary interview.
➢Extensive interview.
➢Stress interview.
➢Discussion interview.
➢Structured interview.
➢Non – structured interview.
➢Group interview.
➢Final interview.
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The Selection Process in AMUL is as Under:Vacancy In Any Department:When there is any vacancy in any any department of the organisation, they give advertisement in
the newspapers.
Approval From M.D:When there is any vacancy in any department, first step is to take approval from M.D to give
advertisement in newspaper. After getting approval the process goes further.
Advertisement:After getting approval from M.D., advertisement is given in local newspaper for the related post
in the sales department.
Collection of Application:All the direct applications are collected.
Securitization of applications:After collection, applications are scrutinized in detail and incompatible application are rejected.
others are kept for further process. During this process, suitable applications are considered on
basis of criteria decided by AMUL.
Interview:Interview is being carried out by a panel of 3 to 4 members consisting of head of Sales
Department, M.D. and Manager of Administration. This panel will be rating on different aspects
such as personality, knowledge of that particular field, general knowledge, written test etc.They
will be having a rating sheet consists of all such headings mentions and each panel member
giving marks and then after ranking will be done.
Medical checkup:Selected person sent for medical check. It held on interview day in AMUL when candidate found
medically fit then selection is done.
Selection:At the end they give the appointment letter to the person and he/she is informed about his/her
joining in the organization.
➢Induction:Induction is introducing an employee to the job and to the organization. The primary purpose of
induction is to give information about organization about organization so that he/she works
comfortably.
Generally induction conveys three types of information:1) General information about the daily work routine.
2) A review of the organization history, objectives, operation, products, visiting different
department.
3) Detail information of the organization policies, work rules and benefits given to employee.
At AMUL there is total 20 days induction program, where they include:
1) Internal Induction:The period of this is 5 to 6 days. During this, new recruit gets familiar with the Sales department
of organization.
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2) External Induction:During external induction program of 6 to 7 days employee is taken at all the plants, the chilling
center. As AMUL is a co – operative sector an employee should get the feel of village and for
that he/she should visit at least 2 or 3 villages.
Finally in 10 days of induction employee get familiar with various departments also that is just to
get acquaintance of department like milk procurement department, purchase department, account
department etc.
TRAINING AND DEVELOPMENT
Procedure followed in AMUL for training:
Identification of need of Training
Module Preparation
Selection of employee for the training
Training
Feedback
AMUL has accepted three methods for the training:➢On the job training.
➢Off the job training.
➢Out house training.
I. On the job training:-
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Under this method, the immediate superior who knows exactly what the sales trainee should
learn and do, gives him/her training at his/her workplace. The management also keeps a close
watch and check up the training from time to time. For on the job training AMUL considers
following form.
Coaching:- under coaching method, the new recruit is trained on the job by his/her immediate
superior.
Job rotation:- the purpose of position rotation is to broaden the background of the employee
in various positions. The employee is made to move from job to job at certain intervals.
II. Off the job training:In the second method some managerial exports from within the organization head conduct the
training for the off the job method .AMUL considers the following form:
Lecture method: - This is the most commonly used method deployed to speak to large group
of sales force about particular topics. The trainees take notes as an aid to learning.
The conference method: - In this method, the participating individuals discuss points of
common interest to each other. The conference is ideally suited to learning problems and issues
and examining them from different angles.
Seminar: - Seminar is based on a paper prepared by the sales trainee on a subject selected, in
consultation with the person in charge of the seminar. The trainee read his/her papers and this is
followed by a critical discussion. Here, various ways of generating competence in the sales
people are used and discussed.
III. Out house training:In this method the new recruits are sent to the different training centers outside the organization
for the training purpose. Generally this method is used for the training for top management
people.
Need of Training:In AMUL training provided to all level employee of different department.
There are different reasons for training. Some of them are:
c use of materials.
they may promote from within.
Effect of Training:AMUL is a largest co – operative sector. They provide training to their employees on regular
basis and whenever needed. After provide training they get the best result from that. Some
results are:
d effectiveness of work.
d dedication feeling for the work.
igher productivity
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MOTIVATIONAL STRATEGY
Motivation is the process of indoctrinating sales people with the unity of purpose to maintain a
harmonious relationship among each other in the sales organization. Motivation is the amount of
effort that the sales person desires to expend on each of the activities or the tasks associated with
the sales job.
The selection of the motivational tool is the most crucial step in the design process and that is
what AMUL also kept in mind.
AMUL deploys both types of motivational tools i.e.:
Financial motivators
(Financial motivation is the most prominent method to motivate the sales people towards
achieving higher sales)
Non-financial motivators
(Non-financial motivation plays a vital role for sales people at the later stages when they need
the psychological satisfaction, beyond the monetary benefits.
In AMUL, financial motivators include:
 Adhoc
Adhoc is a one type of allowance given to employees. union is deciding this allowance as
an extra benefit for employees.
 HRA:House rent allowance is given to employees as an incentive. HRA is given to that
employees who are not leave in quarter allotted by union.HRA is deciding by
management committee every three year according to designation of employee.
 Travel Allowance:Travel Allowance is given to employees as incentives. Travel allowance is deciding by
management and committee according to designation of employee.
 Medical:For the medical expanse of employees this allowance is given. Medical allowance is
deciding by management committee according to designation of employee. This
allowance is given to employee for their children education.
 Bonus:Individual employees may receive additional comensation payments in the form of
bonus, which is a one time payment that does not become part of the employee’s basic.
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In AMUL bonus is paid to employee on regular basis on Diwali. According to the
payment of bonus Act.1965 organisation must paid bonus at a rate of 8.33%. AMUL
follow this rule and paid minimum 8.33% of basic + D.A + Adhoc as a bonus. Some time
they also paid more than 8.33% of bonus to employees.
 Production Bonus:In AMUL production bonus is also paid to employees. management decides this bonus.
In this bonus they decide some amount per day and than that amount is multiply with
working days of employees. whatever the resulted amount is given to employees as a
production bonus. For example if management decide Rs. 4 per day and one employee
work 200 days in a year than
Production Bonus = 200*4
Production Bonus = 800
So that employee get Rs. 800 as a production bonus.
In AMUL the other allowance is also given like Performance Allowance. According to Grade
this allownce is given. In AMUL if any employee want advance then there will be provision of
such facility. In AMUL they also have given LTC every four year to their employees. this mount
paid according to designation of employee
Non-financial motivators deployed in AMUL:
Promotion
Promotion may be defined as an upward advancement of an employee in an employee in an
organisation, which command better pay, better working environment facilities and a higher
responsibility. Following are some criteria to be considering for the promotion.
 Promotion should be earned.
 Opinion of Divisional Head, Past Record, Behavior is to be considering while
promoting a person.
 Skill and Knowledge is also considered.
In AMUL following point are to be consider while promoting employees.:






Seniority.
Vacancies.
Opinion of Divisional head, past record, behavior.
Skill and knowledge.
Experience.
Loyalty toward organisation.
In AMUL, Managing director signs the promotion letter getting recommendation from
Administrative Department. They have promotion policy on the period 3 or 5 year. In AMUL
Retirement Age decided is as 58 years.
Seminar:- In AMUL seminars are organized for development purposes.For that, managerial
person participate in seminar conducted by out side consultant company engaged. The seminar is
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conducted out side the premises of AMUL . In such type of seminar,sales people are motivated
to achieve their targets,they are encouraged to improve their leadership skills and supervision
Conference:- The conference is ideally suited to learning problems and issues and examining
them from different angles. In AMUL such conference are mainly arranged for managerial
development. In this conference the discussion is focused on quality assurance, problem solving
etc. The trainees as members can learn from others..
The other motivational and development programmes arranged by AMUL are within the
premises. The development programmes are arranged on various topic like anger free life, mind
power development, positive changing, personality development etc. Also program on effective
leadership, motivation are arranged for the employees. This help managerial persons to maintain
good relation with employees.
COMPENSATION POLICY IN AMUL
The success of any sales organization depends on the achievement of the sales goal set for the
short-term as well as long –term periods of time. While other programmes like sales force
recruitment, training and motivation are a cost to the company, sales force compensation deals
with the management of the performance of the sales people for generating revenue for the firm.
Sales people tend to increase and manage their performance by linking it to the compensation
they receive from the sales organization.
In AMUL,compensation generally comprises of the cash payments which include fixed salary,
bonus and shared profit. Good compensation plan have a salutary effect on sales people. They
are happier in the work; co – operative with management and productivity is up. There can be
both monetary and non – monetary forms of compensation too.
Wages in the widest sense mean any economic compensation paid by the company under some
contract to his sales force for the services rendered by them. They are basic salary and
allowances. The basic wage is the remuneration, which is paid or payable to the sales person in
terms of his contract of employment for the work done by him. Allowance includes dearness
allowance, bonus, overtime pay etc.
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Top Level
Management
M.D
G.M
:- 01
:- 02
Middle Level
Management
Deputy Manager
:- 004
Assi. Manager
:- 022
Superintendent
:- 036
A.G.M
:- 02
Dy. Superintendent
:- 047
Manager :- 14
Total
Sr. Officer
:- 101
:- 19
Total
:- 210
Lower Level
Management
Assistant
:- 0070
Jr. Assistant
:- 0036
"A" Grade
Employees :- 0066
"B" Grade
Employees :- 0072
"C" Grade
Employees :- 0206
"D" Grade
Employees :- 0239
"E" Grade
Employees :- 0174
"F" Grade
Employees :- 0090
"G" Grade
Employees :- 0096
Total
:- 1049
As there are three levels of management in AMUL, compensation is decided on the basis of
their designation,grade and on the basis of appraisal done.
 Method of remuneration payment: Time wage:- It is based on the amount of time spent wages measured on the
basis of unit of time.
 Piece wage:- It is based on the amount of work performed.
 Compensation structure:- There are 3 sound primary compensation structures.
 Internal Equity.
 External Competitiveness.
 Performance based payment.
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 Incentive:In the word of Hummel and Nickerson, Wage incentive:- “refers to all plans that
provide extra pay for extra performance in addition to regular wages for a job.”
A system of remuneration payment, which would maintain both quality and quantity, is
called incentive remuneration plan. There are three broad categories of incentive schemes
as classified. They are:
 Simple incentive plan.
 Sharing incentive wage plan.
 Group incentive plan.
 Remuneration Legislation:The government has enacted legislative measures to protect the wage earners rights and
to emphasis managerial obligation in this regard. The main wage legislation are:
 The payment of Wage Act,1936.
 The minimum wages Act,1948.
 The payment of Bonus Act, 1965.
 Pay policy:According to the report of the third central pay commission:- “A sound
compensation package should encomoass factor like adequacy of wage, social
balance, supply and demand, fair comparison, equal pay for equal work.”
Fair wages should be fair from the point of view of both employer and employee. While
referring to basic wage levels, three terms are extensively used. They are:
 Minimum Wages.
 Fair Wages.
 Living Wages.
The above mentioned terms are used by the report of the committee on fair wages set up
government of india in 1948, to determine the principle on which fair wages should be
based and to suggest how these principles should be applied. According to this
committee, the minimum wage should represent the lower limit, the next higher level is
the fair wage and the highest level is the living wage.
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DISTRIBUTION NETWORK OF AMUL
Online (Internet):
 Amul cyber store
 Ice cream cyber store
Direct retailing through "Amul Utterly Delicious" parlours:
 Major cities like Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat.
 Presently 1500 parlors and plan to open10, 000 of them by2010
Retailers:
 Currently online are Chennai and Calcutta
 Chennai,Kolkata,Nasik,Jalgaon,Aurangabad,Delhi,Raipur,Jodhpur,Udaipur,Pune,Siliguri/
Durg,Kota.
Wholesalers:
 Producer Co operatives:
This type of distribution organization is formed by agricultural producers for selling their
produce in the local market.
Network of over 3,500 distributors
Distribution channel of AMUL
(MANAGED BY GUJARAT CO-OPERATIVE MILK MARKETING
FEDERATION)
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Manufacturing
GCMMF
Head office
First leg
Depot...1
(from manufacturing units)
Depot...n
Second leg
WD…1
WD…n
Third leg
Retail…1
Retail...n
Customers
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MARKET LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Enterprise resource planning: AMUL has implemented an ERP program as low as Rs. 3
crores 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.
Market logistics deals with the implementation of the SCM of the company.
Upstream Channel- In this, milk is procured from the farmers to the manufacturing units.
1. In the first step, the milk is taken to the VCS by the farmers on foot or bicycles in
small quantities
2. The second step involves the transportation of milk from the co-operatives to the
manufacturing units this is done in special trucks which are equipped with tankers
to carry milk.
Downstream Channel-It is the distribution part of the supply chain i.e. from the manufacturing
units to the retailers.
1. First leg of transport is from the manufacturing unit to the company depots. This
is done using 9 and 18 MT trucks any lesser quantity will be uneconomical to the
company there fore is some time the quantity ordered is lesser then club loading is
done which means that the product ordered is supplied with some other products.
a. Frozen food the temperature of these trucks is kept below -18˚C
b. Dairy wet the temperature of these trucks is kept between 0-4˚C
2. Second leg is from the depot to the WD’s, this transport is carried out in
insulated 3 and 5 MT TATA 407’s here a permanent dispatch plan (PDP) is
prepared where the distributor plans out the quantity of various products to be
ordered on a particular date.
3. Third leg this is the flow of good from WD’s to retailers, a beat plan is prepared
and transportation is done on auto-rickshaws, rickshaws and bicycles.
Some Amul Parlors in the country run by the company or its wholesale dealers:
 Delhi Metro Rail Corporation
 The Somnath Temple
 National Institute of Design
 Infosys Technologies in Bangalore, Mysore & Pune
 Wipro campus in Bangalore
 L.J.College, Ahmadabad
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
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

Ahmedabad Airport
Surat Municipal Corporation
Delhi Police
Gujarat State Road Transport Corporation
Jubilee Mission Medical College, Trichur ,Kerala
Sanjay Gandhi Hospital Parlour, Amethi
Indian Institute of Management, Kolkata
Café Amul, MDG, Gandhi nagar
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.
23
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 the 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 distribution of
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 just-in-time inventory strategy improves dealers'
return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle
operation .
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MILK PROCESSING BLOCK
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SUPPLY CHAIN EXPLANATION WITH DIAGRAM
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 villge level, district level and state level.
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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 describe 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 role in that. It handle all
the marketing for AMUL products. 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
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BIBLIOGRAPHY
www.Google.co.in
www.amul.com/products.html
en.wikipedia.org/wiki/Amul
www.amulicecream.in/
business.mapsofindia.com/sectors/manufacturing/amul.html
www.amulgreetings.com/
http://www.nestle.in/
www.britannia.co.in/