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DISTRIBUTION MANAGEMENTAmul India.
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THE COMPANYTHE COMPANY
Amul means priceless in Sanskrit
Since 1946
Market leaders forAmul butter
Turnover of 67 billion
Amul is a symbol for High quality at reasonable prices
Genesis of a vast co-operative network
Triumph of indigenous technology Farmers organization
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SOME FACTS
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SALES FIGURES
Sales Turnover Rs (million) US $ (in million)
2000-01 22588 500
2001-02 23365 500
2002-03 27457 5752003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
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THE PRODUCTSTHE PRODUCTS
Bread spreads
Cheese ranges
UHT milk
Milk powders
Fresh milk
Ice creams
Chocolates
Mithaiee range
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SCMSCMANDAND MMARKETARKET LLOGISTICSOGISTICS
Implementation of an ERP program as low as Rs.3
crores in collaboration with TCS ltd.
Synchronized working and best possible utilization of
the available resources.
Maintains details regarding the inventory
management.
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THE CHANNEL NETWORKTHE CHANNEL NETWORK
Distribution channel- downstream flow
Procurement channel- upstream flow
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DOWNSTREAM FLOWDOWNSTREAM FLOW
First legManufacturing units to company depots using 9 and 18
MT trucks
Frozen food-below 18C
Dairy wet-0-4C
Second legDepots to WDs
Transport through insulated 3 and 5 MT TATA 407s
Third legWDs to retailers
Transport through rickshaws according to the beat plan
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DOWNSTREAM FLOWDOWNSTREAM FLOW
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UPSTREAM FLOWUPSTREAM FLOW
Milk is taken to VCS by farmers by bicycles
Transportation of milk from the co-operatives to
the manufacturing units through trucks
equipped with tankers equipped to carry milk
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UPSTREAM FLOWUPSTREAM FLOW
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SSELECTIONELECTION CCRITERIARITERIA OFOF THETHE
CCHANNELHANNEL MMEMBERSEMBERS
Authentication by way of identity
Proof of solvency-details of the bankers
Proper storage space in forms of
refrigerators
The company requires the dealers to
furnish any Advertising & Sales initiative
undertaken by them on behalf of thecompany
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SSELECTIONELECTION CCRITERIARITERIACCONTIONTI
Details of delivery vehicles
Competent salesman
Details of the product kept of other
companies have to be provided
Dealers of the company must carry a good
reputation
Market coverage of distributors need to bedefined
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MMOTIVATIONOTIVATION OOFF CCHANNELHANNEL MMEMBERSEMBERS
Distributors
y Margins
y Trade marketing
y
Total quality managementy Vision and mission statemnts
y Amul yatras
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MMOTIVATIONOTIVATION CCONTONT
Retailers
y Trade schemes
y Glow boards
y
Schedule of the salesmany Infrastructure of facilitation
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EEVALUATIONVALUATION OFOF CCHANNELHANNEL MMEMBERSEMBERS
Beat plan
Cumulative performance
Target versus achievement
Other criteria
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CCONFLICTSONFLICTS AMONGAMONG CCHANNELHANNEL
MMEMBERSEMBERS
Ownership of assets
Stocking issues
Replacement of products
Credit policy
Packaging
Replenishment
Margins
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CCOOPERATIONOOPERATIONAAMONGMONG CCHANNELHANNEL
MMEMBERSEMBERS
Amul quality circles
Pilot salesman scheme
Scheduling of sales
Agreement defining rights
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OOBSERVATIONSBSERVATIONS
Strength in its procurement
Leverage on the relationship
Strength in transport channel
No promotional schemes undertaken
Non profit driven organization
Push strategy
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CCOMMENTSOMMENTS ANDAND SSUGGESTIONSUGGESTIONS
Amul should go in for exclusive outlets
Push carts
Trade promotions
Home delivery
Increase margins
Additional salesman on field
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