Strategic Analysis of Amul's Supply Chain Management and Logistics

This report provides a comprehensive analysis of Amul's supply chain, examining its structure, operations, and key success factors. It begins with an introduction to Amul, highlighting its cooperative model and extensive network of suppliers, producers, and distributors. The report then delves into specific tasks, including an overview of Amul's supply chain, its distribution network, and the role of trade-offs in supply chain management. It also explores Amul's objectives, mission, and the importance of logistics, including the use of technology and quality management practices. The report concludes with a discussion of Amul's reliability, maintainability, and the interconnection between human factors and the supply chain. The analysis includes references to Amul's annual reports and other relevant sources, providing a detailed understanding of Amul's supply chain management strategies and their impact on the company's success.

RUNNING HEAD: AMUL SUPPLY CHAIN 0
Amul Supply Chain

AMUL SUPPLY CHAIN 1
Table of Contents
Introduction.......................................................................................................................................................2
Task -1...............................................................................................................................................................2
Task – 2..............................................................................................................................................................2
Task-3................................................................................................................................................................2
Task-4................................................................................................................................................................3
Task-5................................................................................................................................................................3
Bibliography.......................................................................................................................................................5

AMUL SUPPLY CHAIN 2
Introduction
Amul is an apex organization with cooperatives in western India, which is responsible through its
largest milk producer and best innovative practices. The special features of the whole paradigm in
managing the large network development of markets, suppliers, producers, efficient supply chains
and breakthrough leadership. The daily procurement is approximately 23 million in a day from
18700 cooperative societies and more than 3.6 million milk producer members (Amul, 2019).
Task -1
The supply chain of Amul is compiled with farmers who implement their vision and at the same
time, with hierarchical network of cooperatives was developed. The complex supply chain of Amul
stretches from small suppliers in the local region to biggest fragmented markets. Amul managed the
downstream partners with its distribution techniques all over the world. Amul has probably the
nation finest network of distributions and reaches hundreds of towns, cities through an effective cold
chain which ensures products are available with the same quality to all its customers (Prasad &
Satsangi, 2013).
The Amul products are available in more than 5 lakh outlets and network of over 3500 distributors.
There are 47 depots with cold warehouses of ranges of products. The Gujarat cooperatives milk
marketing federations is the largest distributors of Amul. The main distributors of Amul are the
franchise, customers from the same regions or different countries or the third parties logistics
services (Amul , 2019).
Task – 2
Supply chain management is an involving and complex interaction between various factors that help
to achieve the balance between increasing the potential of Amul Company. Amul used the best
methodology that supplies the number of products to their customers. It involves dealing in all the
ranges with increasing multitude and control range of parameters in supply chain management.
Trade-offs helps to fulfill the orders with all its procurements in handling demand and supply
planning. Trade-offs in Amul designs the concept of decision-makers who are from the organization
with a specific attitude to handle in variables combinations. Trade-offs eliminates and reduces the
time in inventory and provides better services to all the customers at a lower cost. They are important
p[art of Amul company as increases in profit growth is in the hands of trade-offs that makes it easier
to handle any prevailing situations (Subrahmanyam, 2004).
Task-3
The purpose and objective of Amul are to an established good brand in the market, to increase the
sale of Amul ice-cream, conducting exhaustive research on the introduction of new flavours, to find
the satisfaction level of retailers with services of Amul and study all the problems of company,
distributors, and sales of a personal level. The main goal is to identify the preference of consumers
with preferred price and quality of milk. The Company learn various new practices and examine the
best methods of the competitors. The distinctive feature involves in managing the large decentralized
network of producers and breakthrough leadership.

AMUL SUPPLY CHAIN 3
The mission of Amul Company is to focus on nutritional requirements, quality, taste, and choices of
the customers. The main focus is on nutritional requirements of the customer which is provided by
Amul Company. The company endeavours to look forward to the new innovation requirements of
the customers throughout the world. With cooperative networking, Amul offers quality products and
at the same time, provide the best values for the money (Mother Dairy , 2019).
Task-4
Logistics refers to the management of things that flow between points of origin to the final
consumption to meet all the requirements of Amul customers or corporations. Amul dairy uses its
system to survive if the amount of milk increases with the breeding of the cattle in artificial
inseminations. Quality of Amul products starts with functional values and improving the
management style by keeping the customer to be focussed. There is strategy formulation in
maintenance requirements with the performance measures in the Amul industry (Prasad, 2016).
It is a part of supply chain management that control the notions of competitive advantages through its
operations. The dynamic logistic system starts with farmers and ends with consumers to the final
products. There is an Upgradation of a system from time to time, as Amul uses six sigma practices
to improve the satisfaction of the customers, reducing cycle time and defects of the various aspects.
Amul uses a large variety of product mix and different type of process on the whole organization
structures. There is system installation in the evolution and utilization of GIS. The data analysis
software aims in utilization for milk production estimates with increasing productivity.
ERP software which is named as Enterprise Wide Integrated Application system that covers a wide
area of plethora operations like planning of market, promotion, and planning of distribution
networks. The effective system required better process and systems in the whole internal as well as
external environments. Several continuous improvements are most significant to increase the
qualities of milk with the innovative storage process. There is facilitating of new and upgraded
technologies with flexible manufacturing of technologies. The performance measures focus on more
than one actors of the Amul comp0any to introduce in the distribution services. There is order
processing time rather than utilization of best product quality with efficiency (Amul , 2019).
Task-5
Amul reliability and maintainability are the most important aspects of the quality of the products
they served to their customers. Amul Company sees to the aspect to provide the best experiences of
their products to its customers. The product is most reliable and perceives on the basis of better
quality to its customers. There is maintenance of the quality from the beginning and draw many
events with status and relevance amongst every age group of consumers. There is a direct
relationship between reliability and maintainability of the products as this tells about the market
structure of the whole company.
Human factors tell about the concept and behavior of the consumers from time to time with reliable
products to their consumers. Supply chain used to help all the farmers to gain a higher number of
returns with effective utilization of resources with innovative logistics and supply management, there
is a requirement of timeliness, responsiveness, and responsibility of the various services. The human

AMUL SUPPLY CHAIN 4
factors and the supply chain are interconnected with each other as supply chain management
manages different human factors that are presented in the Amul Company for a longer period of
time.
Bibliography

AMUL SUPPLY CHAIN 5
Amul , 2019. Annual General Meeting. [Online] Available at: https://amul.com/m/44th-annual-
general-body-meeting-held-on-23rd-june-2018 [Accessed 9 July July].
Amul , 2019. Cooperative Milk Producers. [Online] Available at: http://www.amuldairy.com/pdf/FY
%2017-18%20Chairman's%20Speech.pdf [Accessed 9 July 2019].
Amul, 2019. Organisation. [Online] Available at: https://amul.com/m/organisation [Accessed 9 July
2019].
Mother Dairy , 2019. AMUL – THE TASTE OF INDIA. [Online] Available at:
https://www.motherdairy.com/Category/vision-and-mission [Accessed 7 July 2019].
Prasad, D.R. & Satsangi, D.R., 2013. Amul Cooperative in India in Relation to Operational
efficiency. [Online] Available at: https://www.ijser.org/researchpaper/A-CASE-STUDY-OF-AMUL-
COOPERATIVE-IN-INDIA-IN-RELATION-TO-ORGANIZATIONAL-DESIGN-AND-
OPERATIONAL-EFFICIENCY.pdf [Accessed 9 July 2019].
Prasad, R., 2016. A Study of the Total Quality Management at. [Online] Available at:
http://www.krishisanskriti.org/vol_image/08Aug201809085709%20%20%20%20%20%20%20%20
%20%20Ruchira%20Prasad%20%20%20%20%20%20%20%20%20%20%20797-.pdf [Accessed 9
July 2019].
Subrahmanyam, N., 2004. An Integrated Approach for Effective Supply Chain Management.
[Online] Available at: http://sci-hub.tw/https://doi.org/10.1177%2F0971890720040102 [Accessed 9
July 2019].