AMUL – A case study on IT in SCM

AMUL A case education on IT in SCM A live case of spend of IT Amul is a leading food blade in India. It offers a wide clutch of products like d sore, draw powder, butter, ghee, cheese, chocolates, Shrikhand, ice skim and many more than(prenominal). The cross out hear AMUL is derived from the Sanskrit name Amoolya, meaning priceless. The first gear products with the Amul brand name were launched in 1955. Since whence, they kick in been in pulmonary tuberculosis in trillions of homes in all split of India, and beyond.Today Amul is a symbol of many things Of spicy quality products sold at liable prices, of availability, of service. Amul has been accredited with ISO 9001 and HACCP Certification by QAS, Australia-the first food company in Asia to put maven across the HACCP Certification Amul is a well-acknowledged and live single-valued function up of making a strong use of IT Formed in the year 1946, Amul initiated the dairy farm farm co-operative movement i n India and formed an efflorescence co-operative makeup called the Gujarat Cooperative Milk market Federation (GCMMF).Today, this movement is existence replicated in 70,000 small towns in over 200 regulates in India, transforming the rural landscape. This co-operative revolution has make India the largest manufacturing business of take out in the world today. Amul is withal one of the largest and most celebrated food brands in India. GCMMF markets its products through and through with(predicate) and through 50 gross gross gross sales offices through erupt India and distribution is done through a network of 4,000 stockists who, in turn, tote up 500,000 retail outlets.The mixedity of logistics clear be visualized in terms of millions of litres of draw to be collected from millions of village fellow members. Interestingly, draw is a perishable commodity and then a strong coordination function is involve in storing, bear upon and distributing the milk in required t ime. The case of Amuls ply strand is singular simply because the movement has not only lead to efficient army of milk but, more importantly, has utilise IT to acquire higher profits for milk producers. use of Information Technology IT has played a critical role in the schooling of the Amul brand.The logistics behind the coordination of approximately six million liters of milk per day from numerous village co-operative societies throughout Gujarat, and storing, processing and producing of milk products at various district dairy societies, is carried out with clock-precision. In these, IT plays a critical role. The installing of over 3,000 Automatic Milk entreaty System Units (AMCUS) at village societies to start member information, milk fat centre volume collected, and amount payable to from each one member, has proved invaluable in ensuring truth and transparency throughout the entire organization.GCMMF is an solar apex co-operative organization that comprises affiliat ed member dairies/district milk unions, each having its own manufacturing unit. These member dairies in turn collect milk from members who tack milk twice a day to the respective village co-operative societies. To equate the challenge of development business, IT was decided as the thrust area that would stream sop up the labor and prepare process and the processing of milk products. This is where the installation of AMCUS made the entire subprogram look simple.As milk is a extremely perishable commodity in the issue strand, the AMCUS curtain raising is vital for the operations. More importantly, this initiative has increased the trust and transparency for IT in rural areas. On an average, more or less one thousand farmers come to sell milk at their local accommodative milk ingathering center. Each farmer is given a plastic card for identification, at the milk gathering counter, the farmer drops the card into a box and the identification number is hereditary to a pers onal computing machine wedded to the machine.The milk is then weighed and the fat glut of the milk measured by an electronic fat testing machine. Both these expatiate are recorded in the PC. The computer then calculates the amount 1 AMUL A case study on IT in SCM due to the farmer on the substructure of the fat content. The value of the milk is then printed out on a face and handed over to the farmer, who collects the payment at the adjacent window. With the help of IT the farmers receive their payments at heart a matter of minutes.Each member bear on the milk in the cold storage, processing it and producing several products, sold under the Amul brand name. As all products have a limited shelf life, the organizations ability to chair its operations in a glisten way is much more praiseworthy-especially when one considers the scale of the operations. Amul makes about 10 million payment transactions mundane. On the logistics side, more than 5,000 trucks move the milk from t he villages to 200 dairy processing plants twice a day, harmonize to a carefully planned schedule.Amul took a strategic decision to redesign and re-organize the active software applications in 1994 to meet the challenges of growing business. Accordingly, Amul assigned the ERP software development show named as Enterprise wide compound application system (EIAS) which covers a plethora of operations like market planning, publicise and promotion, distribution network planning, stock control, sales and accounting, budgetary control, quality control management and co-operative service management.Each of Amuls offices is committed by electronic mail and all of them send a daily report on sales and caudex to the main system at Anand. Also, sales offices, C&F points and sweeping distributors of GCMMF have been connected through the profits for timely exchange of information. Amul is overly in the process of Web-enabling the entire add chain so that it can capture gravestone information at the source and use the same for decision-making. This would include the likes of transporters, member manufacturing units, fossil oil packing stations, suppliers, depots and the ntire field force. A vane site (http//www. amul. com) has been constructed featuring sports information, recipes and quizzes (to stimulate buyer liaison and to establish national brand recognition) and business-to- consumer order placement. Amul has a customer feedback channel which uses e-mail addresses like email& one hundred sixtyprotected com for cheese products and email&160protected com for butter products. E-competency has been schematic at the tag on and distribution ends of AMULs business.At the put out end, a computerized database has been found of all suppliers and their cattle. Computerized equipment measures and records qualities and quantities collected. Computers have been set up at member unions and village cooperatives. At the distribution end, stockists have been provi ded with basic reading and computers. AMUL experts assist stockists and retailers to build promotional weathervane pages. AMUL cyber stores have been set up at various locations in India, the USA, Singapore and Dubai.Each lower to the Indian cyber store sites results in extensive purchases. A strong e-mail database of more than 10,000 customers has also been developed. In addition to the EIAS, Amul has also been using geographical Information Systems (GIS) to spot zone/depot boundary as well as a pointer for zone, depot and distributor locations, which are superimpose by product-wise sales data. Going forward, thither are plans to introduce features like network banking services and ATMs which will enable milk societies to credit payments directly to the sellers bank account.In line with this vision, officials at Amul are looking at upgrading the plastic cards, which are being before long apply only for identification purposes, to irreverent cards which can be used to wi thdraw cash from ATMs. Amul has radically modify the complexion of the supply chain-by eliminating the middleman and convey the producer closer to the consumer-resulting in benefits for both. Amul has also linked distributors to the network and also integrate Web pages of top retailers in their meshing site (www. amul. com) as part of B2B initiatives.Distributors can place their orders on the website, amulb2b. com, especially meant for accept orders from stockists and promoting Amuls products via 2 AMUL A case study on IT in SCM E-commerce. A pornographic achievement of IT in Amul has been the automation of the complex supply and delivery chain. The automated supply chain seamlessly integrates the manufacturing dairy units for production, planning and raw material procurement. It handles distribution of milk from wasted unions to deficit unions.It is a live exercise of practicing Just in time supply chain management with six sigma true statement Amuls success in leveraging IT to its benefit lies in the simple fact that the organization has a clear IT vision and has made full use of the potential of IT for managing its supply chain. In 2003, GCMMF won the prestigious global CIO 100 salute from IDGs CIO Magazine, USA. The 2003 CIO 100 award recognizes organizations around the world that excel in positive business performance through resourceful IT management and best practices.GCMMF, whose IT initiatives have been driven by the philosophy of being an IT company in food business, has godly all its employees to sustain the challenges as a change agent by excelling their IT skills in order to transform the people around them towards IT integration on both the ends of supply chain (village dairy farmer to end-consumer), GCMMF has also won the prestigious Ramkrishna Bajaj National whole tone Award for the year 2003.GCMMF has bagged this award for adopting noteworthy quality management practices for logistics and procurement. Over the years, it has estab lished an efficient supply chain that penetrates even out the remotest corners of the country. In summary, Amul has developed world-class expertise in the physical distribution of short-life produce. already advanced in physical logistics, Amul has innovatively explored slipway to use IT to enhance its supply chain. (Source amul. com, ExpressComputers(16 category 2002 article by Srikanth R P), and different sources)GCMMF An Overview Members No. of Producer Members No. of resolution Societies Milk collection (Total 2002-03) Milk collection (Daily Average 2002-03) Milk Drying Capacity sales Turnover (2002-2003) 12 district cooperative milk producers Union. 2. 28 million. 11,132. 1. 86 trillion litres. 5. 08 million litres. 510 metric Tons per day. Rs 27457 Million. IT Enablers used by Amul Uses automated milk collection system units for collection of milk. Implemented a customized ERP system which is used in confederation with GIS. Uses data analysis software for foretell milk production and increasing productivity. Has connected all zonal, regional and member dairies through VSAT. One of the first five Indian organizations to have a Web presence. Geographic information system for sales and distribution planning. Data Information System stall for data analysis and decision sign to help in improving milk collection. Web enabled customer feedback channels. Strong initiatives in e-commerce. 3