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It is the distribution part of the supply chain. From the manufacturing units to the retailers. 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 therefore sometimes the quantity ordered is lesser than club loading which means that the product ordered is supplied with some other products Frozen food the temperature of these trucks is kept below –18 degree celsius Dairy wet the temperature of these trucks is kept between 0-4 degree Celsius Second leg is from the depot to the wholesale dealers, this transport is carried out in insulated 3 and 5 MT TATA 407’s .
A permanent dispatch plant (PDP) is prepared where the distributor plans out the quantity of various products to be ordered on a particular date. 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. Third leg ie the flow of good from wholesalers to retailers; transportation is done on auto rickshaws, rickshaws and bicycles.
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, which will help in efficient product flow (Product Velocity). GCMMF 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 (Cash Velocity).
Given the large number of organizations and entities in the supply chain and decentralized responsibility for various activities, effective coordination which improves the velocity in the supply chain along with efficiency and cost control. GCMMF and the unions play a major role in this process and jointly achieve the desired degree of control. 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. All these activities make Amul supply chain a robust one.
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