SUBMITTED BY:-

FARIDA
POONAWALA(37) SUBMITTED
RAMIZA TOLE(54) TO:-
MARIA PROF. NEHA
 AMUL DAIRY

• The Kaira District Co-operative Milk Producers

Union Limited, popularly known as Amul Dairy is a
US $ 500 million turnover institution

• It is a institution built up with a network of over

10000 Village Co-operative Societies and 500,000
plus members
AMUL DAIRY

• Formed in 1946, Amul initiated the dairy

cooperative movement in Indian through an
apex cooperative organization called the
Gujarat Cooperative Milk Marketing
Federation (GCMMF)
• Today this movement is being replicated in
70,000 villages in over 200 Districts in India,
transforming the life of Indian villagers
• Amul was chosen to show case successful e-
commerce cases in India for setting an example
for building an online bridge to its customers
 PROBLEMS TO BE ADDRESSED

Logistics in collection of :
•6 million liters of milk per day
from about 10600 separate Village Cooperative
Societies
•Approximately 2.1 million milk producing
members

Logistics in coordination of :
•Storing the milk
•Processing the milk
•Distributing the milk
THE NEED

• A need was felt to look for a strategy to make

its operations competitive and streamline the
collection and production processes of Milk
products with the help of ICT tools.
• Amul decided to leverage on the strengths of
an ERP System and took major initiatives in
this direction in 1994.
• Amul studied its existing functions and
operations to formulate an IT plan for
spearheading its growth in the long term
perspective
THE NEED

• Thrust was given to integrate the

existing applications with ICT Tools
through redesign/re-organisation of
existing software applications.
• The focus was to provide a seamless
flow of information leveraging for the
enterprise’s decision making process.
• Amul also recognized the need to
connect its regional and field offices
through e-media.
SHIFT PROCESS

• Company zeroed in on ERP as means to

keep pace with dynamically changing
business environment.

• Tata Consultancy Services was hired to

guide them in its implementation.

• The implementation project was named

as Enterprise- wise Integrated
Application System (EIAS).
 IMPLEMENTATION
• Amul started implementing the ERP in
phases

• Automatic Milk Collection System units

(AMCUS) at village societies were installed
in the first phase to automate milk
producers logistics.

• AMCUS facilitated to capture member

information, milk fat contents, volume
collected and amount payable to each
members electronically.
IMPLEMENTATION
•On an average, around
thousand farmers come to
sell milk at their local co-
operative milk collection
centre.
•Each farmer has been
given a plastic card for
identification.
 IMPLEMENTATION
• At the milk collection counter, the farmer drops the
card into a box and the identification number is
transmitted to a personal computer attached to the
machine.

• The milk is then weighed and the fat content of the

milk is measured by an electronic fat testing machine.
Both these details are recorded in the PC.

• The computer then calculates the amount due to

farmer on the basis of the fat content. The value of the
milk is then printed out on a slip and handed over to
farmer who collects the payment at adjacent window.
IMPLEMENTATION
• Amul also connected its zonal
offices, regional offices and
member’s dairies through
VSATs for seamless exchange of
information.

• The customized ERP- EIAS has

been implemented across the
organization integrating various
operational departments.
IMPLEMENTATION
• In addition to EIAS, Amul is also using
Geographic Information Systems (GIS) for
business planning and optimization of
collection processes.

• Indian Institute of Management –

Ahmedabad supplemented Amul’s IT
strategy by providing an application
software – Dairy Information System
Kiosk(DISK) to facilitate data analysis and
decision support in improving milk
collection.
IMPLEMENTATION
• on the history of cattle owned by the farmers,
medical history of the cattle, reproductive cycle
and history of diseases.
• Besides this, farmers can have access to
information related to milk production, including
best practices in breeding and rearing cattle.
• Using the same system, the farmers can even
have access to a multimedia database on
innovations captured by Srishti, an NGO working
with IIMA. As a large amount of detailed history
on milk production is available in the database,
the system can be used to forecast milk
collection and monitor the produce from
individual sellers.
IMPLEMENTATION
• Going forward, there are plans to
introduce features like Internet
banking services and ATMs which
will enable milk societies to credit
payments directly to the seller’s
bank account.

• In line with this vision, officials at

Amul are looking at upgrading the
plastic cards which are being
currently used only for
 Amul’s IT roadmap
Uses automated milk collection system units for collection
of milk

Customized ERP system which is used in conjunction with

GIS

Use of data analysis software for forecasting milk

production and increasing productivity

All zonal, regional and member diaries connected through

VSAT
 One of the first five Indian organization to have web
presence

Made IT education compulsory for all its employees.

Opted for the .COOP domain to position its brand in a

distinct way.
REAPING
RETURNS

Radical changes in business processes - eliminating

middlemen and bringing the producers closer to the
customers.

Improved delivery mechanisms and transparency of

business operations.

Due to this process, AMUL is able to collect six million

litres of milk per day
REAPING
RETURNS

Processing of 10 Million payments daily, amounting to

transactions worth USD 3.78 million in cash.

Huge reduction in processing time for effecting

payments to the farmers from a week to couple of minutes
after implementing the ERP.

Controlling the movement of 5000 trucks to 200 dairy

processing plants twice a day in a most optimum manner.

Practicing just in time supply chain management with

six sigma accuracy.
REAPING
RETURNS

Online order placements of Amul’s products on the web.

Distributors can place their orders on the website

www.amul2b.com especially meant for accepting orders
from stockists and promoting Amul’s products via e-
commerce.

Company has started receiving queries from overseas

agents for distribution of its products in countries like US,
Britain, New Zealand, Singapore and Thailand.
REAPING
RETURNS
As a result of on-line initiatives, today, Amul exports
products worth around US$ 25 million to countries in West
Asia, Africa and USA

The decision making process has rapidly improved since

real time data is available on the click of a button.

Easy monitoring of crucial management practices like

demand versus supply with the help of ERP .