DISTRIBUTION

NETWORK OF AMUL
 PRESENTED BY:-
• CHANDAN SINHA BBA 4598/08
BIRLA INSTITUTE OF TECHNOLOGY(NOIDA)
 INTRODUCTION
• AMUL means "priceless" in Sanskrit.

• Amul products have been in use in millions of homes

since 1946.

• Turnover of Rs. 67113 million in 2008-09.

• Today Amul is a symbol of high-quality products sold at

reasonable prices and of the genesis of a vast co-
operative network.
 PRODUCTS
• Bread spreads.
• Cheese range.
• Mithai range.
• Milk range.
• Pure ghee.
• Infant milk .
• Curd products
• Ice creams.
 Facts about AMUL.
• Milk is procured twice a day from 2 million
producers from Gujarat alone.
• 6 manufacturing units all over India.
• The payment is made under twelve hours of
procurement
• There are 13328 village cooperative societies
• There are 3600 wholesale distributors in the
country
• 47 depots
 Facts about AMUL contd

• There are approx. 4,50,000 retailers spread all over India

• The milk procured per day is 8.4 million liters.

• Where the total capacity of operation is 11.22 million liters per

day.

• The peak processing till date has been 6 million liters per day

• These co operative societies are bound to supply there produce

only to GCMMF(GUJARAT CO-OPERATIVE MILK MARKETING
FEDERATION).
 CHANNEL NETWORK.
Amul has got 2 types of channel networks
which supports its procurement and
distribution aspect, they are:-

1. Procurement channel(upstream flow).

2. Distribution channel(downstream flow).

UPSTREAM FLOW.

MANUFACTURING UNIT

VILLAGE CORPORATE
SOCIETY(VCS)

VILLAGE
 DOWNSTREAM FLOW.
DEPOT

MANUFACTURING
UNIT.

WHOLESALE
DISTRIBUTOR.

RETAILER.
 MODE OF TRANSPORT
FOR UPSTREAM

BICYCLE /FOOT
1. VILLAGE VCS.

2. VCS SPECIAL TRUCKS MANUFACTURING

UNITS.
 MODE OF TRANSPORT CONTD

FOR DOWNSTREAM.
9 & 18 MT TRUCKS.
1. MANUFACTURING DEPOT
UNIT.
INSULATED 3 & 5 MT
TRUCK(TATA 407).
2. DEPOT W.S

AUTO RICKSHAW,
RICKSHAW, BICYCLE.
3. W.S RETAILER
 INVENTORY
• Enterprise resource planning: the company at has
implemented an ERP program as low as Rs. 3 corers in
collaboration with TCS ltd. The company uses it, the
data right from the procurement from the farmers till
the delivery of goods to the retailers is fed into the
system. The software enabling the channel members
to use for the synchronized working and best possible
utilization of the available resources maintains details
regarding the inventory management.
 
 CONTROL OF CHANNEL
MEMBERS.
AMUL takes into consideration a host of factors
for controlling the channel members.
1. Proper authentication of the channel members.
2. Proper storage facility.
3. Insurance of stock.
4. Details of all the distributors and dealers
vehicle to be kept with company.
5. Good reputation of the channel members.
 CONTROL OF CHANNEL
MEMBERS contd

6. The company requires the dealers to furnish

Advertising & Sales initiative undertaken by
them on behalf of the company.
7. Market coverage by the distributors needs to
be defined which includes details of
Geographic coverage & Outlets per market
area
 CO-OPERATION AMONG
CHANNEL MEMBERS.

• Amul quality circles.

• Pilot salesmen scheme.

• Scheduling of sales.

• Agreement defining rights.

 CONFLICTS AMONG
CHANNEL MEMBERS.
• Ownership of assets.
• Stocking issues.
• Replacement of products.
• Replenishment.
• Packaging.
• Margins.
• Credit policy.
 OBSERVATION
• STRENGTH IN PROCURMENT.
• LOYAL COOPERATIVES.
• TRANSPORT CHANNEL.
• HIGH SALES VOLUME AND LOW MARGIN.
• SAME DISTRIBUTION CHANNEL FOR ALL
PRODUCT.
 CONCLUSION
• From the following information it is quite evident that
distribution channel network of any company plays a
vital role in its position in the market.
• AMUL has shown in all the way that why it is one of
the leading company in the market for dairy product.
• This accomplishment of AMUL is widely credited to
their well thought Distribution channel, which gives
them a competitive advantage over other companies.
• AMUL has paved way for others to follow, to have a
successful Distribution network.