AMUL

A case study on IT in SCM

Case Background

Amul is a leading food brand in India 50 sales offices throughout India Distribution is done through a network of 4,000 stockists, who, in turn, supply 500,000 retail outlets Complexity in logistics

Millions of liters of milk to be collected from millions of village members Perishable commodity

Strong coordination function is required in storing, processing and distributing the milk in required time

Evolution of IT at Amul

Automatic Milk Collection System Units (AMCUS) at village societies to capture member information, milk fat content volume collected, and amount payable to each member The customized ERP has been implemented across the organization integrating various operational departments. Amul also connected its zonal offices, regional offices and members dairies through VSATs Amul is also using Geographic Information Systems (GIS) for business planning and optimization of collection processes Data analysis software utilization for milk production estimation and increasing productivity. Web enabled customer feedback channels

Structure of Information Systems

Benefits of using IT

Time reduction Reduction of pilferage Reduced human errors On the spot payments for farmers Wastage is reduced Transparency of operation Operational integration Monitoring veterinary health and controlling the outbreak of disease

Benefits of IT in Amul SCM

Streamlining: Communicate and collaborate more effectively with suppliers. Connecting: Make the connection between what your customers want and what you produce. Analyzing: Analyze your supply chain and manufacturing options and choose the plan that makes best use of your assets. Synchronizing: Synchronize the flow by managing the capacity of vessels, tanks, and lines-and the flow between them. Designing: To create an optimal supply chain network and adapt the network to keep pace with changes in your business. Transforming: Transform processes to meet the demand. Understanding: Get a better understanding of your supply chain and implement the changes you need to optimize. Maximizing: Maximize profits by using advanced costing, billing, and invoicing capabilities. Optimizing: Optimize your day-to-day logistics performance to reduce costs and improve customer satisfaction.

Conclusion
The critical factors that contributed to the success of IT implementation

Understanding the baseline operations comprehensively is the starting point for designing IT system. Understanding of ground conditions helped Amul to design the system considering customer needs. The implementation was carried out in a limited way and the system was expanded after validation. The reputation of the agency was a major factor that increased the acceptance of the new technology The new system endowed substantial benefits to the customer. The waiting time for payment was completely eliminated Working closely with the supplier, helped in the hardware/software customization, thereby facilitating the user acceptance Amul had been known for treating all its customers alike. This helped them to create trust. Existing levels of trust helped them to reinforce the working relationships. The personal interest and commitment of the executives eliminated the teething problems and gave the users access to the new technology.

Thank You