Supply Chain Management at GCMMF
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Case Details:
Case Code : OPER057
Case Length : 14 Pages
Period : 1991 - 2006
Organization : GCMMF, AMUL
Pub Date : 2006
Teaching Note :Not Available Countries : India
Industry : Dairy Products
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
GCMMF's Product Portfolio
GCMMF began as a milk supplier and slowly added new products to its portfolio.
One of the first products that it produced was butter; skim milk powder followed
and ghee (clarified butter) in 1955. Gradually, several other products were
added. GCMMF sold different varieties of milk like full cream milk, semi-toned
milk, and full-toned milk. The fat content in the milk was reduced and the fat
removed was used to make products like cream and butter, which yielded higher
margins.
In the 1970s, GCMMF introduced cheddar cheese, a malt based beverage called
Nutramul, and chocolates. Cheese spread was launched in 1983. In the same year,
a sweet made of curd known as Shrikhand was also introduced...
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GCMMF's Supply Chain
At the start of the GCMMF's supply chain were the farmers who supplied the
milk to the VCSs. The district unions processed the milk and took care of
making the final product.
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GCMMF was the marketing agency for the products
produced by different milk co-operative member societies in Gujarat and some
unions in other states, which marketed their products under the brand name
Amul.
In 2005, GCMMF had 12 district milk unions, with each union having one or
more manufacturing units producing different Amul products. GCMMF's large
product portfolio called for efficient procurement and distribution in order
to ensure product availability across the country. The essential elements of
GCMMF's supply chain management included milk production, procurement,
transportation, processing, packaging and distribution of final products
like butter, cheese, ice-cream, etc. to the customers... |
Procurement
Activities at the village level comprised developing and
servicing the VCSs, increasing milk collection, procuring milk, and transporting
it to the chilling and processing units twice a day. Earlier, one of the
problems had been the inadequate feeding of animals, because of which milk
production from them was low. The VCSs provided the farmers with good quality
animal feed, fodder, and other services like veterinary first aid...
Excerpts Contd...>>
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