THE CHANNEL NETWORK Distribution channel GCMMF Head office Manufacturing

First leg(from manufacturing units)

Depot...1

Depot...n

Second leg

WD1

WDn

Third leg
Retail1 Retail...n

Downstream flow

Procurement Channel
Distribution GCMMF Head office

MU1

MU...n

VCS1

VCSn

Village1

Villagen

Upstream flow

(VCS): Village Cooperative Societies (WD): Wholesale Distributors (MU): Manufacturing Units The fact sheet Milk is procured twice a day from 2 million from Gujarat alone The payment is made under twelve hours of procurement There are 10000 village cooperative societies There are 3600 wholesale distributors in the country 45 depots The C&F agents are not fixed and are decided by the local company offices There are approx. 4,50,000 retailers spread all over India Total house hold consumers covered are 100,000 The milk procured per day is 5 million liters Where the total capacity of operation is 7 million liters per day The peak processing till date has been 6 million liters per day These co-operative societies are bound to supply there produce only to GCMMF

Upstream Channel in which milk is procured from the farmers to the manufacturing units. 1. In the first step, the milk is taken to the VCS by the farmers on foot or bicycles in small quantities 2. The second step involves the transportation of milk from the co-operatives to the manufacturing units this is done in special trucks which are equipped with tankers to carry milk. Downstream Channel, it is the distribution part of the supply chain. From the manufacturing units to the retailers. 1. 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 is some time the quantity ordered is lesser then club loading is done which means that the product ordered is supplied with some other products. a. Frozen food the temperature of these trucks is kept below -18C b. Dairy wet the temperature of these trucks is kept between 0-4C

2. Second leg is from the depot to the WDs, this transport is carried out in insulated 3 and 5 MT TATA 407s here a permanent dispatch plan (PDP) is prepared where the distributor plans out the quantity of various products to be ordered on a particular date.

3. Third leg this is the flow of good from WDs to retailers, a beat plan is prepared and transportation is done on auto-rickshaws, rickshaws and bicycles.

SELECTION CHANNEL MEMBERS

The company takes into consideration a host of factors while selecting the channel members. This is because GCMMF believes that selection of channel members is a long run decision & the rest of the decision regarding the supply chain depends upon the efficiency & coverage by the channel members. The following are the host of factors considered by the company in selecting the channel members:

Authentication is required by the regarding the identity of the channel members, which includes the name & address, photograph of the location.

Proof of solvency which requires name & address of the channel members bankers

Safety of the inventory, which means that the distributor/ dealer should get the stock of the company insured.

Inventory or the perishable goods kept by the distributor/ dealer should be in good condition which means a detail of storage space & Refrigeration facility is to be provided. Refrigeration system should have deep freezers, cold room & walk in coolers.

Details of the delivery vehicle, which includes Light Commercial Vehicles, Matador, 3 Wheeler Van, Tricycle Van & Hand/Push cart. The number & model of each of the vehicle needs to be furnished to the company. GCMMF acknowledges the fact that it needs to be sensitive to the market demands. For this it requires that a number of salesmen needs to be present on the field. The salesmen too are divided into various categories like the Field salesmen & Counter salesmen. Also the details of Clerical Staff & Mazdoors are to be provided. The technical competence of the salesmen needs to be mentioned

Details of the product kept of other companies have to be provided. The annual sales of these products too have to be mentioned. Also details of complementary products & product lines need to be mentioned.

Dealers of the company must carry a good reputation. This is due to the fact that the company believes reputation of the dealer affects the clientele.

Market coverage by the distributors needs to be defined which includes details of Geographic coverage & Outlets per market area.

The company also requires the dealers to furnish any Advertising & Sales initiative undertaken by them on behalf of the company.