15-10-2012, 05:20 PM
SUPPLY CHAIN MANAGEMENT AMUL
SUPPLY CHAIN MANAGEMENT.pptx (Size: 974.42 KB / Downloads: 51)
KEY FACTS
AMUL means priceless in Sanskrit “Amoolya”
Brand name managed by an apex cooperation organization –GCMMF
World’s biggest vegetarian cheese brand
World’s largest pouched milk brand
Largest food brand in India
Spurred the white revolution in India
Accreditation with 9001 and HACCP certification by QAS, Australia.
GCMMF: An Overview
Members
13 district cooperative milk producers Union
No. of Producer Members
2.79 million
No. of Village Societies
13,328
Total Milk handling capacity
11.22 million liters per day
Milk collection (Total - 2008-09): 3.05 billion liters.
Milk collection (Daily Average 2008-09): 8.4 million liters
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing Capacity: 3500 Mts. per day
PRODUCTS
Bread Spreads
Milk Drinks
Powder Milk
Fresh Milk
Cheese
For Cooking
Chocolate
PROBLEMS TO BE ADDRESSED
Logistics in collection –
6 million liters of milk per day
From about 10,600 separate village cooperative societies.
Approximately 2.8 million milk producing member.
Logistic in coordination of –
Storing the milk.
Processing the milk.
Distributing the milk.
EVOLUTION of “IT”
The evolution of IT in AMUL was took place in the guidance of DR.B.M Vyas.
The milk collection center at village cooperative societies, were first automated.
Application and utilization of GIS.
Data analysis software utilization for milk production estimation and increasing productivity.
VATS network between all the level of distribution network and GCMMF.
Shift process
The company zeroed in on ERP as means to keep pace with dynamically changing business environment.
TCS was hired to guide them in its implementation.
The project was named as Enterprise wise integrated application system (EIAS)
IMPLEMENTATION
Amul start implementation of ERP in phases.
Automatic milk collection system units(AMCUS) at village society were installed in the first phase to automate milk production logistics.
AMCUS facilities to capture member information, milk fat content, volume collected, and amount payable to each member electronically.
Indian Institute of Management – Ahmedabad supplemented Amul’s IT strategy by providing an application software – Dairy Information System Kiosk(DISK) to facilitate data analysis and decision support in improving milk collection.
The kiosk would also contain an extensive database on the history of cattle owned by the farmers, medical history of the cattle, reproductive cycle and history of diseases.
Farmers can have access to information related to milk production, including best practices in breeding and rearing cattle.
As a large amount of detailed history on milk production is available in the database, the system can be used to forecast milk collection and monitor the produce from individual sellers.
REAPING RETURNS
Radical changes in business processes - eliminating middlemen .
Improved delivery mechanisms and transparency of business operations.
Due to this process, AMUL is able to collect six million litres of milk per day.
Huge reduction in processing time for effecting payments to the farmers from a week to couple of minute.
Processing of 10 Million payments daily, amounting to transactions worth USD 3.78 million in cash.
Movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner.
Practicing just in time supply chain management with six sigma accuracy.
Online order placements of Amul’s products on the web.
Distributors can place their orders on the website.
Amul exports products worth around US$ 25 million to countries in West Asia, Africa and USA.
Total Quality Management Model
There is improvement in quality of milk in term of acidity and sour milk.
Sabor milk union records show 2% reduction in the amount of the sour milk received from the union.
Improved microbiological quality of upcoming raw milk in the form of methylene blue reduction.
This gives better shelf life to the product.
Program like Red Tag Day was launched for cleaning the milk collection center.
District Cooperative Milk Producers’ Union (Milk Union)
Procurement of milk from the Village Dairy Societies of the District.
Arranging transportation of raw milk from the VDCS to the Milk Union.
Providing input services to the producers.
Conducting training on Cooperative development
State Cooperative Milk Federation (Federation)
Marketing of milk & milk products
Establish distribution network
Arranging transportation from the Milk Unions to the market.
Creating & maintaining a brand
Providing Technical Inputs, management support & advisory services.
Decide on the products to be manufactured at various Milk Unions (product-mix)
Conduct long-term Milk Production, Procurement, Processing & Marketing Planning
Conflict Resolution & keeping the entire structure intact
Procurement
Activities at the village level comprised developing and servicing the VCSs.
Increasing milk collection, procuring milk, and transporting it to the chilling and processing units twice a day.
The VCSs provided the farmers with good quality animal feed, fodder, and other services like veterinary first aid.
PROCURNMENT CHANNEL
On an average around thousand farmers come to sell milk at their local co-operative milk collection center.
Each farmer has been given a plastic card for identification.
At the milk collection counter, the farmer drops the card into a box and the identification number is transmitted to a personal computer attached to the machine.
The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine.
Both these details are recorded in the PC. The computer then calculates the amount due to farmer on the basis of the fat content.
The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.
COLD STORAGE NETWORK
Chillers in proximity of villages
Prompt transport to district facilities for further dispatch to consumers/ processing units.
Chilled trucks to transport processed products
Delivery to local chillers by insulated rail tankers and chilled trucks.
Refrigerators and freezers with retailers and departmental stores to retain freshness.