THE CHANNEL NETWORK

• Procurement channel- upstream flow

• Distribution channel- downstream flow

 UPSTREAM FLOW
• Milk is taken to VCS by farmers on
bicycles
• Transportation of milk from the co-
operatives to the manufacturing
units through trucks equipped with
tankers equipped to carry milk
 DOWNSTREAM FLOW

• First leg
• Manufacturing units to company depots using 9 and 18
MT trucks
• Frozen food-below 18C
• Dairy wet-0-4C
• Second leg
• Depots to WDs
• Transport through insulated 3 and 5 MT TATA 407’s
• Third leg
• WDs to retailers
• Transport through rickshaws according to the beat plan
 Selection Criteria of the
Channel Members
• Authentication by way of identity
• Proof of solvency-details of the bankers
• Safety of inventory by getting the company stock
insured
• Proper storage space in forms of refrigerators
• The company requires the dealers to furnish any
Advertising & Sales initiative undertaken by them
on behalf of the company
Selection Criteria Conti…
• Details of delivery vehicles
• Competent salesman
• Details of the product kept of other
companies have to be provided
• Market coverage of distributors need to be
defined
 Motivation Of Channel
Members
• Distributors
– Margins
– Trade marketing
– Total quality management
– Vision and mission statemnts
– Amul yatras
 Motivation Cont…
• Retailers
– Trade schemes
– Glow boards
– Schedule of the salesman
– Infrastructure of facilitation
 Evaluation of Channel
Members
• Beat plan
• Cumulative performance
• Target versus achievement
• Other criteria
Conflicts among Channel
Members
• Ownership of assets
• Stocking issues
• Replacement of products
• Credit policy
• Packaging
• Margins
 Observations
• Strength in its procurement
• Leverage on the relationship
• Strength in transport channel
• No promotional schemes undertaken
Thank You!!