Supply chain of Amul: In this article, our team of e-commerce experts will share the brainstorming ideas from the Indian cooperative brand Amul.
But, before we get learning from the supply chain of Amul, we need to understand, how the supply chain of Amul works.
Later in this article, you will get to know the business behind Amul. So, let’s start.
What is Amul:
Amul is a dairy cooperative company that is located in the State of India, Gujrat. The brand Amul was earlier known as Anand Milk Federation Union Limited.
The interesting part of Amul is that this cooperative company generated revenue of $ 6.5 Billion in year 2022. The company achieves this business through its simple supply chain while redistributing wealth in society. Also, the company creates opportunities for rural and weaker sections of society.
- Largest food brand in India
- Founding Year: 1946
- Employees: 1,000 (Marketing Arm)
3.6 million (3.6 million) (Milk producing members
Story Of Brand Amul:
In the early days of Amul, the milk producers (Farmers) have to travel a long distance to deliver milk to the dairy. In the summer season, the milk gets sour. In the winter season, the producer was either left with surplus unsold milk or had to sell it at very low prices. Once the milk is delivered to the dairy, agents take a big part of the milk from farmers.
To solve this problem, Kaira District Cooperative was established. Village-level cooperatives were established to organize the marginal milk producers( Most farmers only sell 1-2 liter per day) in each of these villages.
After that, the first modern dairy of Amul was established in Anand, Gujarat.
Every day, Amul collects millions of liters of milk from local farmers and creates branded packages to supply in their brand stores.
Supply Chain of Amul:
As shown in the supply chain diagram, the early point of Amul’s supply chain is farmers. The farmers are organized in village cooperative societies(VCS).
These VCS supply milk to Member unions of different dairy co-operatives and then supplied to the Gujarat Cooperative Milk Marketing Federation (GCMMF). GCMMF has all the responsibility to deliver milk and dairy products to their distributors and then to end customers.
GCMMF is the marketing entity for the products of all the unions in the state of Gujarat. The main motive behind GCMMF is to benefit the farmers through this hierarchical supply.
Learning For eCommerce Business Owner:
- Try to find the problem-solving products
- Quality of product matters
- Marketing must be in the right way
- Cutting the marketing budget is like killing your idea
- User trust is business
Well, we tried our best to deliver the knowledge through the Supply chain of Amul, if you still find something to add to this article, do share your thoughts in the comment section below. Also, do click on the share button so that your friends also get exclusive knowledge from the Amul supply chain.
Note: The logo and Brand Amul are trademarks of their respective owners.