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Madurai Aavin Milk Dairy

MAMD largest dairy in the Southern part of India

supply good quality milk at a reasonable price; provide good remunerative prices to farmers; procure milk
all throughout the year to reach demand
62% market share; India consumes 13% of the world total milk production

Operation issues - Two Key Issues Exist:

1. There is no direct flow between MAMD and the farmers, making the supply chain become
complex and insufficient
2. MAMD is unable to reach their target supply, causing a loss in market share to competitors and
loss of good quality milk to consumers at good prices Both lead back to the supply-demand gap


The direct method is recommended for MAMD:

1. Here managers allocate one vehicle to each surrounding farm and allocate a specific time
for collection. Reducing transportation costs.
2. MPSC's and milk production will now be done internally. Reducing production costs,
gaining from economies of scale and gaining a competitive advantage over competitors.
3. Note: If farmers do not wish to purchase loans from the MAMD and buy farms, the
MAMD are recommended to buy their own farms, employ the farmers and vertical
supply chain. Here they are guaranteed supply, as well as obtaining the control to
manage diseases in cattle

Dynamic Building capabilities:

1. Insufficient ability to bridge the gap between demand and supply in MAMD is majorly
attributable to ineffective supplier relationship management.
2. Quality of the raw material appears to be threatened

SWOT Analysis:

Strengths: 1. Resource configurations 2. Leading market shares

Weakness: 1. Inefficient relationship management 2. Ineffective demand forecasts
Opportunities: 1. Increasing customer demands 2.Chances of education and employment in rural areas
(Local farmer's communities support)
Threats: 1.Local rivals of private dairies 2. Macro-environmental uncertainties
Madurai Aavin Milk Dairy

1. Inspections and sampling method could be used as a cost-effective method which would also
save time and labor.
2. The flowcharting method is employed (as known as service blueprinting) to check the potential
fail points where rectification could be made

Conclusion & Implications

1. Budgeting: Acquiring the money to fund recommended projects balancing the Burdens.
2. Sharing the workload fairly amongst the workforce Analysis