SUPPLY CHAIN MANAGEMENT
Logistics activities
I. 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.
II. Logistic in coordination of –
? Storing the milk. ? Processing the milk. ? Distributing the milk.
III. Supplier logistics –
? Weighing the milk. ? Determining of fat content. ? Calculation of the purchase price.
VALUE CHAIN PROCESS
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.
Automatic Milk Collection System Units (AMCUS)
Dairy information system kiosk (disk)
• 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.
EIAS
• Enterprise wide Integrated Application Systems (EIAS) to integrate the Distribution side of the Supply chain
• Amul is also using Geographic Information Systems (GIS) for business planning and optimization of collection processes.
AMUL PATTERN
A three tier cooperative structure: Dairy cooperative society at village level
Milk union at district level
Milk federation at state level
Village Dairy Cooperative Society (VDCS)
• Collection of surplus milk & payment based on quality & quantity. • Providing support services to the members. • Selling liquid milk for local consumers of the village.
• Supplying milk to the District Milk Union
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
• Providing management support & regular supervision to the VDCS.
• Establish Chilling Centers & Dairy Plants for processing the milk.
• Selling liquid milk & milk products within the District. • Process milk into various milk & milk products. • Decide on the prices of milk to be paid to milk producers.
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 • • • • •
State Cooperative Milk Federation (Federation)
THE CHANNEL NETWORK
• Procurement channel- upstream flow
• Distribution channel- downstream flow
GCMMF’s Supply Chain
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
• On an average around thousand sell milk at their local co-operative • 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.
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.
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 unions monitored the supplies of milk and the distribution of finished products.
DOWNSTREAM FLOW
• First leg
? Manufacturing units to company depots using 9 and 18 MT trucks ? Frozen food-below 18C ? Dairy wet-0-4C
• Second leg
? Depots to WDs ? Transport through insulated 3 and 5 MT TATA 407’s
• Third leg
? WDs to retailers ? Transport through rickshaws according to the beat plan
Reverse logistics
MILK CHURN ? from dairy to VCS POUCH MILK TRAY ?from retailer to dairy BOTTLE ?from retailer to dairy DAMAGED PRODUCTS ?from customer to retailer then to dairy
Improve Logistics in Transportation through Integration with the Railway System
• Liters of milk per day (Manesar to Delhi) –RS • Number of Delivery per year • Annual Transport cost via Road • (Rs.) • Transport Cost via Road per liter (RS ) Savings via Railway • Cost Savings (Rs.) per liter 1,200,000 365 400,000,000 0.91 50% 0.46
Thank you………..
doc_616394054.pptx
Logistics activities
I. 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.
II. Logistic in coordination of –
? Storing the milk. ? Processing the milk. ? Distributing the milk.
III. Supplier logistics –
? Weighing the milk. ? Determining of fat content. ? Calculation of the purchase price.
VALUE CHAIN PROCESS
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.
Automatic Milk Collection System Units (AMCUS)
Dairy information system kiosk (disk)
• 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.
EIAS
• Enterprise wide Integrated Application Systems (EIAS) to integrate the Distribution side of the Supply chain
• Amul is also using Geographic Information Systems (GIS) for business planning and optimization of collection processes.
AMUL PATTERN
A three tier cooperative structure: Dairy cooperative society at village level
Milk union at district level
Milk federation at state level
Village Dairy Cooperative Society (VDCS)
• Collection of surplus milk & payment based on quality & quantity. • Providing support services to the members. • Selling liquid milk for local consumers of the village.
• Supplying milk to the District Milk Union
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
• Providing management support & regular supervision to the VDCS.
• Establish Chilling Centers & Dairy Plants for processing the milk.
• Selling liquid milk & milk products within the District. • Process milk into various milk & milk products. • Decide on the prices of milk to be paid to milk producers.
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 • • • • •
State Cooperative Milk Federation (Federation)
THE CHANNEL NETWORK
• Procurement channel- upstream flow
• Distribution channel- downstream flow
GCMMF’s Supply Chain
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
• On an average around thousand sell milk at their local co-operative • 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.
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.
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 unions monitored the supplies of milk and the distribution of finished products.
DOWNSTREAM FLOW
• First leg
? Manufacturing units to company depots using 9 and 18 MT trucks ? Frozen food-below 18C ? Dairy wet-0-4C
• Second leg
? Depots to WDs ? Transport through insulated 3 and 5 MT TATA 407’s
• Third leg
? WDs to retailers ? Transport through rickshaws according to the beat plan
Reverse logistics
MILK CHURN ? from dairy to VCS POUCH MILK TRAY ?from retailer to dairy BOTTLE ?from retailer to dairy DAMAGED PRODUCTS ?from customer to retailer then to dairy
Improve Logistics in Transportation through Integration with the Railway System
• Liters of milk per day (Manesar to Delhi) –RS • Number of Delivery per year • Annual Transport cost via Road • (Rs.) • Transport Cost via Road per liter (RS ) Savings via Railway • Cost Savings (Rs.) per liter 1,200,000 365 400,000,000 0.91 50% 0.46
Thank you………..
doc_616394054.pptx