Amul Essay

822 Words Jan 28th, 2016 4 Pages
Supply chain model at Amul

GCMMF- Gujarat Co-operative Milk Marketing Federation
MUs- Member Unions
VCs- Village Co-operatives

The farmers bring the milk to the village cooperatives in their bicycles. The milk is then channelized to the member unions located in various states in India. These member unions are independent organizations involved in the process of milk production. The head office of GCMMF is located at Anand. The entire market is divided into five zones. The zonal headquarters are located in Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49 depots located across the country and GCMMF also caters to 13 export markets.

Amul has an excellent distribution channel. As milk is a perishable product
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Sources- http://www.iimb.ernet.in/~chandra/AMULpaper2.pdf Traditional distribution channels vs Modern distribution channels

Traditionally FMCG sector depended largely on a network of Kirana stores, mid-sized and high-end traditional stores such as health care, beauty and cosmetic outlets.

Modern trade has brought in swanky supermarkets, which offer better ambience, larger display areas and space for companies to showcase their products.

According to data given by Nielsen India, modern trade comprises of only 9.2 % of FMCG market in India. Still it’s an urban phenomenon because the top 17 cities of India comprise of 75 % of the entire retail business in FMCG. Nielsen expects a growth of 25% in the modern trade of FMCG.

Looking into the distribution channels of beverages, traditionally the beverage industry follows the centralized distribution model in India wherein the manufacturers sent their products to localized cold storages, which act as warehouses from which the product is sent to the wholesalers. But now with the advent of technology, a new model has cropped up known as DSD (Direct sales distribution) model in which the manufacturer sends its good directly to retail outlets using a specialized type of logistics called cold chain logistics.

In cold chain logistics, the goods are stored at cooler temperatures to prevent deterioration. The giants in beverage industries like PepsiCo and Coca-Cola are already following the DSD

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