...Business Strategies for Managing Complex Supply Chains in Large Emerging Economies: The Story of AMUL Pankaj Chandra Devanath Tirupati Indian Institute of Management Vastrapur, Ahmedabad 380015 India chandra@iimahd.ernet.in devanath@iimahd.ernet.in Revised April 2003 Acknowledgement: We would like to thank BM Vyas, MD, GCMMF, Kailash Vyas, MD, AMUL and many employees of the two organizations for hours of discussion, for making documents on performance and practices available to us for research, and for arranging field visits to various village societies, chilling units, and union plants. We are also grateful to MS Sriram and Partha Mukhopadhyay for their extensive comments on the paper. This project was funded by a grant from Research & Publications, Indian Institute of Management, Ahmedabad, India. Abstract In this paper we describe a case study of a dairy cooperative, AMUL, in western India that has developed a successful model for doing business in large emerging economy. It has been primarily responsible, through its innovative practices, for India to become world’s largest producer of milk. This paper draws various lessons from the experiences of AMUL that would be useful to cooperatives globally as well as firms that are interested in doing business in large emerging markets like India and China. Many of these economies have underdeveloped markets and fragmented supply bases. Market failures for many of these small producers are high. On the other hand, the...
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...1. INTRODUCTION 1.1 DISTRIBUTION Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. 1.2 DISTRIBUTION CHANNEL It is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones. Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. Distribution channels are probably the most visible aspect of any company’s marketing efforts. A recent estimate puts the number of retail out lets in India at 5 million. The retail industry provides livelihood to more than 15 million people in the country. If one included in this the number of distributors, wholesalers, agents including the army of life insurance agents,...
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...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 and Amul is spread all over India. It has a robust logistic system consisting of milk vans, tanker lorries and rail wagons to supply its finished products to various parts of the country. Distribution channel in Amul FARMERS FARMERS VCs (without chilling units) VCs (without chilling units) CONSUMERS CONSUMERS CONSUMERS CONSUMERS Retailers Retailers Home delivery contractors Home delivery contractors Wholesalers/ C&S Wholesalers/ C&S Warehouses Warehouses Chilling units Chilling units Milk processing units Milk processing units Local residents Local residents Local Restaueants Local Restaueants VCs (with chilling units) VCs (with chilling units) First of all the products are stored with the warehouses...
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...EMERGING BUSINESS MODELS FROM EMERGING ECONOMIES 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 1 Dr. S.Balasubrahmanyam Indian Institute of Management Kozhikode Strategic Management of Innovation (27th July, 2013) PROMISING BUSINESS MODELS AT BOP 8/11/2013 Profitable or at least self-sustaining without requiring continuous subsidy Scalable and thus able to reach and improve the lives of significant numbers of poor people Dr. S.Balasubrahmanyam, IIM Kozhikode 2 BUSINESS MODELS IN LOW-END MARKETS 8/11/2013 No-frills products Small-size products (e.g., micro-loans) Group products (joint liability group-JLG) Pre-assured demand (JLGs guarantee demand) Dr. S.Balasubrahmanyam, IIM Kozhikode Paraskilling 3 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode CORE MODEL ELEMENTS PAY-PER-USE MODEL-1: 4 COMMUNITY WATER FILTRATION MODEL: PERCEPTIONS OF USERS & NON-USERS 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 5 TWO-THIRDS OF BYRRAJU PLANTS ARE PROFITABLE WITHOUT SIGNIFICANT MARKETING EFFORT 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 6 OTHER INDIAN EXAMPLES OF MODEL-1 8/11/2013 Water: Naandi Foundation Water Health International Poorvi Enterprises Piramal Foundation Dr. S.Balasubrahmanyam, IIM Kozhikode Energy: Biogas Bank S3IDF Lighting: ICT: Drishtee N-Logue Comat 7 NO FRILLS SERVICE MODEL-2: CORE MODEL ELEMENTS ...
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...A Project Report on AMUL’S SUPPLY CHAIN MANAGEMENT In Partial Fulfillment of the Requirements of Production and Operations Management Course in PGDM Programme Submitted To: Prof. Praneti Shah Submitted By : GITANJALI AULUCK | P1001 | MEHUL BHATT | P1002 | CHINMAY GANDHI | P1010 | AFTAB HATHI | P1012 | DARSHITA THAKKAR | P1053 | PIYUSH VADOLIYA | P1058 | VISHAL DADHICH | P1006 | VEDANGI JOSHI | P1017 | SOHAM PATEL | P1033 | PARTH SHUKLA | P1047 | Batch: 2010-12 Submitted on: 18th April 2011 N. R. INSTITUTE OF BUSINESS MANAGEMENT , AHMEDABAD 1 INDEX 1) INTRODUCTION TO AMUL . . . . . . . . . . . . . . . . . . . . . . 3 2) STRATEGIES OF AMUL . . . . . . . . . . . . . . . . . . . . . . . . . 5 3) AMUL’S SUPPLY CHAIN MANAGEMENT . . . . . . . . . . 6 4) GCMMF’S SUPPLY CHAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 5) E- SUPPLY CHAIN MANAGEMENT OF AMUL . . . . . . . . . . .13 6) AMUL CYBER STORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 7) BENEFITS OF E-SCM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 8) FUTURE PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 9) BIBLIGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2 Introduction The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a US $ 500 million turnover...
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...Introduction OF COMPANY: The brand name "Amul," is derived from the Sanskrit word "Amoolya," (significance Precious) was proposed by a quality control master in Anand.), shaped in 1946, in India. It is a brand name managed by an apex cooperative association, Gujarat Co-agent Milk Marketing Federation ltd. (GCMMF), which today is together possessed by approximately 2.8 million milk producers in Gujarat, India. Amul is situated in Anand, Gujarat and is best known for its achievement in the dairy cooperative. It is one of the best illustrations of co-agent accomplishment in the creating economy. "Any individual who has seen the dairy cooperatives in the state of Gujarat, particularly the highly successful one known as AMUL, will regularly ponder what blend of impacts and motivating forces is required to reproduce such a model a thousand times over in creating districts everywhere. The Amul Pattern has established itself as a remarkably suitable model for country development. Amul has impelled the White Revolution of India, which has made India the largest maker of milk and milk items in the world. It is likewise the world's biggest vegan cheddar brand. Amul is the biggest sustenance mark in India and world's Largest Pouched Milk Brand with a yearly turnover of US $1050million (2006-07). At present Unions are aiming to produce 2.8 million producer parts with milk accumulation normal of 10.16 million liters per day. Amul started with only one plant in Anand and 2 village cooperative...
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.......................................................... 4 Demand Side Drivers – The Demographic Profile of the Indian Consumer Segment ........................................................................................ 4 Supply Side Drivers – Industry Trends Encouraging Growth ............................................................................................................................. 5 Transition Phases ................................................................................................................................................................................................. 6 Structure of the Industry ........................................................................................................................................................................................ 7 Challenges ............................................................................................................................................................................................................ 8 Key Foreign Direct Investment (FDI) Regulations ................................................................................................................................................. 9 Supply Chain...
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............................................................... 4 Demand Side Drivers – The Demographic Profile of the Indian Consumer Segment ........................................................................................ 4 Supply Side Drivers – Industry Trends Encouraging Growth ............................................................................................................................. 5 Transition Phases ................................................................................................................................................................................................. 6 Structure of the Industry ........................................................................................................................................................................................ 7 Challenges ............................................................................................................................................................................................................ 8 Key Foreign Direct Investment (FDI) Regulations ................................................................................................................................................. 9 Supply Chain Management...
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...needs to be vastly improved. The single most important problem facing the Indian agricultural industry is the highly inefficient supply chain. Because of lack of cold chain infrastructure and also a food processing industry about 20 per cent of all foods produced in India (Rs. 500 b) are wasted. By building an efficient and effective supply chain using state of the art techniques it is possible to serve the population with value added food while simultaneously ensuring remunerative prices to the farmers. The surplus of cereals, fruits, vegetables, milk, fish, meat and poultry can be processed as value added food products and marketed aggressively both locally and internationally. Investments in cold chain infrastructure, applied research in post harvest technologies, installation of food processing plants in various sectors and development of food retailing sector are mandatory for achieving gains in this sector. Strategic growth plans for achieving both national and international competitiveness of the food industry are essential. 1. OUTLINE OF THE PAPER In this paper we identify emerging opportunities in the food and cold chain sector in India and present ways in which existing market challenges in India can be overcome using technology and experience. In particular, we identify opportunities for improvement in real estate and cold chain infrastructure, establishing food processing plants, wholesale, retail, third party logistics and technology. In Section 2, we...
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...DB704 Strategic Supply Chain Management and Logistics Version 4 Credits 20 Assignment 1 Individual Assessment Due Date | | Date submitted | | Total marks | 200 | Weighting | 20% | Name of student- Amul Patel | ID No.: 12000608 | I declare that this is my own work - Signature of student | | Task 1 - Learning Outcome 1 | % | Assessment Criteria | Marks | Your Marks | Covering assessment criteria: 1.1. Assess the importance of effective supply chain management for an organisation | 4% | Individual writing assessment | 40 | | | | Total Marks | 40 | | Task 2 - Learning Outcome 1 | % | Assessment Criteria | Marks | Your Marks | Covering assessment criteria: 1.2. Assess and compare advantages of supply chain models for an organisation. 1.3. Assess the link between supply chain management and business functions in an organisation 1.4. Evaluate the key drivers for achieving an integrated supply chain strategy in an organisation | 12% | Individual writing assessment | 120 | | | | Total Marks | 120 | | Task 3 - Learning Outcome 1 | % | Assessment Criteria | Marks | Your Marks | Covering assessment criteria: 1.5. Evaluate the advantages of a tightly integrated supply chain in an organisation. | 4% | Individual writing assessment | 40 | | | | Total Marks | 40 | | Name of tutor | Dr. Reginald | Date: | Signature of tutor | | | 1.1. Assess the importance of effective supply chain management for an organisation ...
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...Analysis OF SUPPLY CHAIN MANAGEMENT AT BRITANNIA INDUSTRIES Acknowledgement It would be of great pleasure for me to take the opportunity of thanking nearly everybody who had been of great help in the completion of my dissertation. My sincere gratitude goes to MR.KAPIL GARG (DEPPT. OF MANAGEMENT) and MR.MANORANJAN (DEAN). My institute guide, without whose help this dissertation would have seemed impossible. I owe immensely for the minute help that was forwarded to me by friends in my organization. Both of the above mentioned persons supported me incredibly and guided me with suggestions and probation’s for the betterment of my accomplished work. It has been of great learning to be on the job and doing the dissertation simultaneously, which enriched my knowledge and developed my outlook. I am looking forward to continued support from my friends and colleagues in future as well. Only with their encouragement and coorporation. SARITA KUMARI Contents Chapter 1: Introduction -Need of the study - Background Chapter 2: Research methodology -Objectives of the study -Research Methodology (sample size, instrument used, Methods of data collection) Chapter 3: Descriptive work of subtopic on study Chapter 4: Data analysis & Interpretation ...
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...Crafting And Executive Strategy Assignment 1 Case Study # 6 Dell Inc. In 2008 : Can it overtake Hewlett – Packard as the worldwide leaders in personal computers ? Submitted to : Prof. James Farmer Submitted By : Roshni Patel Student Number : 300686000 Question 1: Dell inc. Began with a ‘winning strategy’. At this time (2012), this strategy is not used to the extent that it was once was and the company is now not the company that it was once. Did Dell’s strategy fails, did the company fail to effectively execute the strategy or did the environment changes around Dell? Evaluate the possibilities. Answer: Dell is a global company that delivers products and services in more than 190 countries and company had given employment to over 4000 employees. The company deals in enterprise computing products, monitors, printers, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and downs from its inception in 1984 and has to face many challenges and competitors to stay ahead in the market. Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to consumers which would eliminate the additional cost of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risk associated with...
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...Distribution Strategy (Group D _ Session 7 _ Assignment) San Fabian (SF) - MacDowell Philippines (MP) - Paulo Remita Incorporated (PR) Problem Statement After 19 years of an established “exclusive-distribution” agreement with San Fabian; MacDowell Philippines decided to terminate the deal. MacDowell Philippines decided to take over the Wholesale role of San Fabian (SF) and would participate directly in large Commercials as well as Government Projects. Accordingly MP (MacDowell Philippines) products line will be made available to Construction Supply dealers across Philippines. MP claimed to be forced to take that step to help increasing Sales since they experienced an operation capacity around 50%. Situation Analysis As Mr. Paul Cheng _ President of SF was looking at that situation imposed by MP; he went back in time when the relationship started between both corporations in 1967 and continued since then and saw how that engagement was considered to be a “ Natural Fit “ or in other words a “ Win to Win “ situation. There were things SF wanted in MP and other things MP was missing that could be briefly explained as follows: a) SF MP * SF was missing the roofing product line * MP was the only manufacturers who accepted the “exclusive-distribution” agreement b) MP SF * SF was a growing co. with a solid, good reputation * SF didn’t carry any competing product line * SF could offer a national coverage * SF would be able to pay...
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...control from Spain, the sole logistics hub. Although 34% of Inditex’s manufacturing is outsourced to Asia, and 14% to parts of Europe including Turkey, those tend to be the more basic items. The high-fashion stuff, 49% of what it sells, is cut and finished in Spain though some sewing is done elsewhere. So this structure clearly makes sense. Long lead times and the concomitant inventories are more tolerable for basic T-shirts and such that will essentially always be carried. Labor savings from sourcing in Asia are likely more than enough to offset the added holding cost. That wouldn’t be true for products with more “fashion content” that may sell today but not tomorrow. Keeping that work in or near Spain shortens the lead time and avoid supply-demand mismatches. But how long will Zara be able to keep with this model? Particularly if the real growth opportunity is in Asia. A big question, however, is how far [Inditex] can go on growing from its home base. Now that 15% of its sales are in Asia, does it make sense to run product design and logistics just from Spain? Some clothes it has made in China are shipped to Spain and then back to shops in China. The...
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...Which type of vertical marketing system does Zara employ? List all the benefits that Zara receives by having adopted this system. Zara employs a Corporate Vertical Marketing System. Zara has managed to build a system that is controlled from a single place and that it allows it for quick response, decision and problem solving. Because Zara’s parent company Inditex owns most of the resources needed for the process of clothing design, production and distribution it is able to “control most every aspect of the supply chain, from design and production to its own worldwide distribution network” (Armstrong & Kotler). Vertical Marketing System Introduction In an organization, effective marketing strategies play an important role in boosting the performance of the business. In the integration of the corporate leaders in pursuit of their financial objectives, the creation of marketing system has been established. The creation of vertical marketing system is introduced and defined as a distributing channel in which the manufacturer, wholesaler, and retailer act as a single system. An organization that can control the product and services until it reached to the end consumers is the plain example of vertical marketing system. Apparently only few of the businesses around the world successfully managed this type of system. It may define as a difficult approach to maintain the sales and effectiveness but it serves as the strongest point of the organization to boost the various...
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