RETAIL MANAGEMENT

SYMBIOSIS CENTRE FOR MANAGEMENT

STUDIES, NOIDA
(CONSTITUENT OF SYMBIOSIS INTERNATIONAL UNIVERSITY, PUNE)

RETAIL MANAGEMENT
IIIRD YEAR

"BRIEF REPORT ON PROJECT

'DISTRIBUTION NETWORK OF AMUL' "

SUBMITTED BY:
NAME : ABHINAV GOEL
PRN NUMBER : 12021021004

ABHINAV GOEL ( 12021021004)

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INTRODUCTION

Distribution channel is a series of firms or individuals that facilitates the movement of

a product from the producer to the final customer You can eliminate the middleman,
but not the function.Place: products available where and when customers want them
a way of selling a company's product either directly
or via distributors; "possible distribution channels are wholesalers or small retailers or
retail chains or direct mailers or your own stores"
Amul products are available in over 500,000 retail outlets across India through its
network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to
buffer inventory of the entire range of products.
Gujarat Cooperative Milk Marketing Federation transacts on an advance demand draft
basis from its wholesale dealers instead of the cheque system adopted by other major
FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining
cash transactions throughout the supply chain and it also minimizes dumping.
Wholesale dealers carry inventory that is just adequate to take care of the transit time
from the branch warehouse to their premises. This just-in-time inventory
strategy improves dealers' return on investment (ROI). All GCMMF branches engage in
route scheduling and have dedicated vehicle operations. The network follows an
umbrella branding strategy. Amul is the common brand for most product categories
produced by various unions: liquid milk, milk powders, butter, ghee, cheese,
cocoa products, sweets, ice-cream and condensed milk. Amul's sub-brands include
variants such as Amul spray, Amulspree, Amulya and Nutramul. Theedible oil products
are grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara
brand while fruit drinks bear the Safal name. By insisting on an umbrella brand, GCMMF
not only skillfully avoided inter-union conflicts but also created an opportunity for the
union members to cooperate in developing products.
Buy-in from the unions is assured as the plans are approved by GCMMF's
board. The board is drawn from the heads of all the unions, and the boards of the
unions comprise of farmers elected through village societies, thereby creating
a situation of interlocking control. The federation handles the distribution of end
products and coordination with retailers and the dealers. The unions coordinate the
supply side activities. These include monitoring milk collection contractors, the
supply of animal feed and other supplies, provision of veterinary services, and
educational activities.

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DISTRIBUTION CHANNEL OF AMUL

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Activities that a typical distribution channel performs:

Spatial discrepancy:
exists because of physical distance between the location where it
ismanufactured and location where it is being consumed
Temporal discrepancy:
time at which it is produced and the time at which it is being consumed
Need to break the bulk:
products are consumed in small quantities
Need to provide assortment:
variety of products & not a single product

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DOWNSTREAM CHANNEL OF AMUL

It is the distribution part of the supply chain. From the manufacturing units to the
retailers.
1. First leg of transport is from the manufacturing unit to the company depots. This is
done using 9 and 18 MT trucks any lesser quantity will be uneconomical to the company
there fore is some time the quantity ordered is lesser then club loading is
done which means that the product ordered is supplied with some other products.
a. Frozen food the temperature of these trucks is kept below -18C
b. Dairy wet the temperature of these trucks is kept between 0-4C
2. Second leg is from the depot to the WDs, this transport is carried out in insulated
3and 5 MT TATA 407s here a permanent dispatch plan (PDP) is prepared
where the distributor plans out the quantity of various products to be ordered on a
particular date.
3.Third leg this is the flow of good from WDs to retailers, a beat plan is
prepared and transportation is done on auto-rickshaws, rickshaws and bicycles

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