THE COMPANY

• Amul means priceless in Sanskrit

• Since 1946
• Market leaders for Amul butter
• Turnover of 25 billion
• Amul is a symbol for
• High quality at reasonable prices
• Genesis of a vast co-operative network
• Triumph of indigenous technology
• Farmer’s organization
 THE PRODUCTS
• Bread spreads
• Cheese ranges
• UHT milk
• Milk powders
• Fresh milk
• Ice creams
• Chocolates
• Mithaiee range
 SCM and Market Logistics
• Implementation of an ERP program as low as
Rs. 3 corers in collaboration with TCS ltd.
• Synchronized working and best possible
utilization of the available resources
• Maintains details regarding the inventory
management.
 THE CHANNEL NETWORK
• Distribution channel- downstream flow

• Procurement channel- upstream flow

 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
 UPSTREAM 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
 Selection Criteria of the Channel
Members
• Authentication by way of identity
• Proof of solvency-details of the bankers
• Safety of inventory by getting the company stock
insured
• Proper storage space in forms of refrigerators
• The company requires the dealers to furnish any
Advertising & Sales initiative undertaken by them on
behalf of the company
 Selection Criteria Conti…
• 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 be defined
 Motivation Of Channel
Members
• Distributors
– Margins
– Trade marketing
– Total quality management
– Vision and mission statemnts
– Amul yatras
 Motivation Cont…
• Retailers
– Trade schemes
– Glow boards
– Schedule of the salesman
– Infrastructure of facilitation
 Evaluation of Channel
Members
• Beat plan
• Cumulative performance
• Target versus achievement
• Other criteria
 Conflicts among Channel
Members
• Ownership of assets
• Stocking issues
• Replacement of products
• Credit policy
• Packaging
• Replenishment
• Margins
 Cooperation Among Channel
Members
• Amul quality circles
• Pilot salesman scheme
• Scheduling of sales
• Agreement defining rights
 Observations
• Strength in its procurement
• Leverage on the relationship
• Strength in transport channel
• No promotional schemes undertaken
• Non profit driven organization
• Push strategy
 Comments and Suggestions
• Amul should go in for exclusive outlets
• Push carts
• Trade promotions
• Home delivery
• Increase margins
• Additional salesman on field
Thank You!!