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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)

DECLARATION

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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)

ACKNOWLEDGEMENT

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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

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ABOUT AMULAMUL 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:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Mozarella Cheese Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

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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:

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:

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

RecruitmentRecruitment 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.

➢ Employee Referrals:-

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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:- Application Initial interview of the candidate. Employment tests. Interviews. Checking references. Physical or medical examination. Final interview and induction.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.➢

The Selection Process in AMUL is as Under:-

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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.

2) External Induction:-

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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:

AMUL has accepted three methods for the training:- On the job training.➢ Off the job training.➢ Out house training.➢

I. On the job training:-

Identification of need of Training

Module Preparation

Selection of employee for the training

Training

Feedback

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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: When new technology introduce in union. Increase quantity and quality of product. To meet organisation need at all time. For better economic use of materials. To prepare the present employees for higher assignments so thatthey 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: Increased effectiveness of work. Increased dedication feeling for the work. Higher 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*4Production 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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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.

Top Level Management

M.D :- 01

G.M :- 02

A.G.M :- 02

Manager :- 14

Total :- 19

Middle Level Management

Deputy Manager :- 004

Assi. Manager :- 022

Superintendent :- 036

Dy. Superintendent :-

047

Sr. Officer :- 101

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

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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)

GCMMF

Head office

Manufacturing

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First leg (from manufacturing units)

Customers

MARKET LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Depot...1 Depot...n

WD…1 WD…n

Retail…1 Retail...n

Second leg

Third leg

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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˚Cb. 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 Ahmedabad Airport Surat Municipal Corporation Delhi Police

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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.

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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 .

MILK PROCESSING BLOCK

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SUPPLY CHAIN EXPLANATION WITH DIAGRAM

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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.

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.

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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

BIBLIOGRAPHY

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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/