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DISTRIBUTION MANAGEMENTAmul India.

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THE COMPANYTHE COMPANY

Amul means priceless in Sanskrit

Since 1946

Market leaders forAmul butter

Turnover of 67 billion

Amul is a symbol for High quality at reasonable prices

Genesis of a vast co-operative network

Triumph of indigenous technology Farmers organization

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SOME FACTS

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SALES FIGURES

Sales Turnover Rs (million) US $ (in million)

2000-01 22588 500

2001-02 23365 500

2002-03 27457 5752003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

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THE PRODUCTSTHE PRODUCTS

Bread spreads

Cheese ranges

UHT milk

Milk powders

Fresh milk

Ice creams

Chocolates

Mithaiee range

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SCMSCMANDAND MMARKETARKET LLOGISTICSOGISTICS

Implementation of an ERP program as low as Rs.3

crores in collaboration with TCS ltd.

Synchronized working and best possible utilization of

the available resources.

Maintains details regarding the inventory

management.

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THE CHANNEL NETWORKTHE CHANNEL NETWORK

Distribution channel- downstream flow

Procurement channel- upstream flow

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DOWNSTREAM FLOWDOWNSTREAM FLOW

First legManufacturing units to company depots using 9 and 18

MT trucks

Frozen food-below 18C

Dairy wet-0-4C

Second legDepots to WDs

Transport through insulated 3 and 5 MT TATA 407s

Third legWDs to retailers

Transport through rickshaws according to the beat plan

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DOWNSTREAM FLOWDOWNSTREAM FLOW

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UPSTREAM FLOWUPSTREAM FLOW

Milk is taken to VCS by farmers by bicycles

Transportation of milk from the co-operatives to

the manufacturing units through trucks

equipped with tankers equipped to carry milk

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UPSTREAM FLOWUPSTREAM FLOW

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SSELECTIONELECTION CCRITERIARITERIA OFOF THETHE

CCHANNELHANNEL MMEMBERSEMBERS

Authentication by way of identity

Proof of solvency-details of the bankers

Proper storage space in forms of

refrigerators

The company requires the dealers to

furnish any Advertising & Sales initiative

undertaken by them on behalf of thecompany

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SSELECTIONELECTION CCRITERIARITERIACCONTIONTI

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 bedefined

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MMOTIVATIONOTIVATION OOFF CCHANNELHANNEL MMEMBERSEMBERS

Distributors

y Margins

y Trade marketing

y

Total quality managementy Vision and mission statemnts

y Amul yatras

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MMOTIVATIONOTIVATION CCONTONT

Retailers

y Trade schemes

y Glow boards

y

Schedule of the salesmany Infrastructure of facilitation

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EEVALUATIONVALUATION OFOF CCHANNELHANNEL MMEMBERSEMBERS

Beat plan

Cumulative performance

Target versus achievement

Other criteria

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CCONFLICTSONFLICTS AMONGAMONG CCHANNELHANNEL

MMEMBERSEMBERS

Ownership of assets

Stocking issues

Replacement of products

Credit policy

Packaging

Replenishment

Margins

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CCOOPERATIONOOPERATIONAAMONGMONG CCHANNELHANNEL

MMEMBERSEMBERS

Amul quality circles

Pilot salesman scheme

Scheduling of sales

Agreement defining rights

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OOBSERVATIONSBSERVATIONS

Strength in its procurement

Leverage on the relationship

Strength in transport channel

No promotional schemes undertaken

Non profit driven organization

Push strategy

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CCOMMENTSOMMENTS ANDAND SSUGGESTIONSUGGESTIONS

Amul should go in for exclusive outlets

Push carts

Trade promotions

Home delivery

Increase margins

Additional salesman on field

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