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Introduction Gujarat Cooperative Milk Marketing Federation Ltd is popularly known as AMUL. It is one of the largest milk product-producing organizations having an annual turnover of $ 6. billion. The milk corporation provides good returns to farmers and at the same time, they serve their customers by providing good quality for the money which they pay. The organization operates 76 sales offices. The sales offices have a network of dealers and retailers. It is also one of the largest exporters of dairy products to the countries like the USA, the gulf, Singapore, etc. GCMMF has received various awards over the years for its quality, customer focus and dependability. Amul has seen growth in its portfolio throughout the years, with the category rising at a rate of 53%. Amul Taaza, a long-lasting UHT product for urban consumers that is packaged in Tetra Pak containers, has undergone UHT treatment to eliminate all hazardous microorganisms while preserving the nutritional value of the milk. Amul estimates that the demand for UHT milk and other value-added products will increase by 25% daily sales of 400,000–500,000 litres. Since UHT products do not require cold supply networks, Amul has become the market leader in the packaged milk category. Supply chain description: A supply chain is dynamic and entails a continuous movement of information, goods, and money between several phases. All parties engaged in directly or indirectly completing a consumer request are included in a supply chain of AMUL. The supply chain also includes transporters, warehouses, merchants, and even the real customers in addition to the manufacturer and suppliers. Each company's supply chain, such as in manufacturing, entails every step taken to accept and fulfil a client request. The entities involved in AMUL supply chain are farmers, village cooperative societies, district milk corporation union, state corporation milk processing unit, chilled warehouses, wholesalers, retailers, home delivery contractors and finally reaches the consumers. Farmers are the important part of this supply chain who produce raw material, milk. The village cooperative societies which is present in most of the villages collect milk from the farmers. The collected milk is then transferred to district milk corporation union. In district milk corporation union has chiller units which stores the milk. Then the milk is transferred to the state milk processing unit where the milk processing is done and various types of product are manufactured based on their customer segmentation. Based on the segmentation, the products
are sent via Chilled storage van to chilled warehouses in each state. The product is transferred to the wholesaler, from wholesalers to retailers and finally it reaches the consumers. Type of product of AMUL: AMUL Milk, Butter, Cheese, Paneer, cheese sauce, Beverage Range, Amul protein products, ice cream, ghee, milk Powders, chocolates, fresh cream, bakery products, AMUL sour cream, AMUL cattle feed, etc. Strategic priorities: The supply chain and the collecting chain make up the first and second halves of Amul's strategic priority, respectively. The collection process begins with the milk being weighed, followed by an assessment of its fat content and, lastly, an estimation of the buying price. The milk is first stored, then processed, and then distributed as part of the supply chain. Geographical distribution: AMUL has decentralized organizational distribution centre. AMUL has various milk processing plant in various state like Gujarat, Uttar Pradesh, Delhi, Maharashtra, Chattisgar, Madhya Pradesh, Rajasthan, Assam, Jammu & Kashmir and Jharkhand. Altogether it has 30
unit after undergoing many rounds of testing, pasteurisation and standardisation, separation, quality checks, and packaging. Then it goes to the distributers who are located at various places of the district. Then the distributors divide them according to the requirement of the retailers. Finally retailers distributes to the consumers. Decentralized milk collection was done with marginal farmers in mind, who typically provided 1-2 litres of milk each day. The cooperative, which first produced milk, later expanded its product line to include additional milk-based items including butter, cheese, ice creams, milk powder, etc. The perishable nature of the commodity presents a barrier for this model's inventory management. Nevertheless, AMUL is thought to have one of the greatest supply chains in the whole globe. There are 47 setups with dry and cold warehouses for the variety of products, in addition to the network's more than 3,500 distributors. Entities and Functions in the Supply Chain: Amul is a dairy cooperative with headquarters in Gujarat, India's Anand region. The sanskrit term amulya, from which the English word amul is derived, has the sense of priceless. In the beginning, the cooperative was known as Anand Milk Federation Union Limited, thus the moniker AMUL. It is a business that relies on redistributing money throughout society and providing numerous chances for India's rural and underprivileged communities while also achieving economies of scale through its straightforward supply chain. In the beginning, farmers had to manually transport milk in a single container across great distances to the lone dairy, the Polson Dairy in Anand. As a result, milk frequently went bad, especially during the heat. Therefore, these agents made seasonal decisions about the pricing and off-take from the farmers. The producer either had excess milk that went unsold throughout the winter or was forced to sell it at extremely cheap rates. As a result, the Kaira Region Cooperative is founded to gather and process milk in the Kaira district. Since the majority of the producers were small farmers who only produced 1-2 litres of milk per day, milk collecting was likewise decentralised. The marginal milk producers in each of these communities are organised via the creation of village-level cooperatives. At Anand, Kaira Union's first contemporary dairy was created (which popularly came to be known as AMUL dairy after its brand name). 300,000 pounds of milk may be pasteurised daily at the new facility, which could also produce 10,000 pounds of butter, 12,500 pounds of
milk powder, and 1,200 pounds of casein daily. with a $3.2 billion annual revenue (2013). The biggest food brand in India is Amul. Amul is also India's top producer of milk and milk- related goods. Small producers, such as farmers, who work together to build an integrated strategy to form an economically significant firm, profit from the Amul business model. By doing away with intermediaries, this approach puts manufacturers and buyers face-to-face. Amul obtains 447,000 litres of milk daily from 2.12 million farmers, transforms the milk into branded, packaged commodities, and distributes the products, which are valued at Rs. 60 million, to around 500,000 retail establishments nationwide. Farmers that produce milk from their animals make up the supply chain for Amul, as depicted in the following diagram. The cooperatives, known as Village Cooperative Societies, are made up of the farmers (VCS). Thirteen separate dairy cooperatives, known as Unions, of which Amul is one, get milk from these VCSs. These unions provide the Gujarat Cooperative Milk Marketing Federation with milk or milk-related goods (GCMMF). The GCMMF is the organisation in charge of marketing all the unions' products in Gujarat. GCMMF sells to more than 15 nations, services over 500,000 retail establishments, and has 42 regional distribution hubs across the nation. Even though each of these groups has their own legal identity, they are all loosely connected by a shared purpose. Through this hierarchical supply chain, which encompasses a variety of organisations ranging from small suppliers to huge fragmented marketplaces, GCMMF's ultimate purpose is to help the farmers. Amul's success may be ascribed to the high calibre of its goods, competitive pricing, and the faith that it has inspired in its customers.
Forecasting production of milk: Finding the ideal amount of milk products to load each day onto a van for each distribution centre is the main difficulty AMUL is facing. AMUL loses money when distribution centres are overstocked or understocked, which dissatisfies customers. To reduce returns and keep up with the rising frequency of supply, a reliable and scientific approach of demand forecasting for its SKUs is necessary. The demand for perishable milk products with a limited shelf life can be predicted using time series techniques. To create a forecasting model with inaccuracy, several time-series techniques including Simple Moving Average-3 window, Simple Moving Average- window, Exponential smoothing, and Adjusted Exponential Smoothing were utilised (i.e. minimum difference between actual demand and forecasted demand). When deciding which forecasting method is the most accurate, two errors—the mean average deviation (MAD) and mean average percent deviation (MAPD)—are taken into account. MAD and MAPD are shown to be the least effective among the strategies for Additionally, seasonal variations can be taken into consideration by increasing the anticipated demand by the seasonality index. This would reduce demand forecasting inaccuracy even more. To anticipate the demand for milk products, this forecasting technique is used at every stage of the supply chain.
