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BUSINESS MODEL

Eliminating the middlemen


Division of Procurement units on the basis of Societies (Amalgamation of villages)
Low price strategy

Sourcing Models
Catalog hubs - systematic sourcing of manufacturing inputs (Milk)

Ownership Models
Private

Service Based Models


Information exchange, digital catalogs.

CRM Model
Loose relationship with fewer transactions
Mobile apps for consumers Amul Store Locator and Amul Explorer.
Social media for listening to its customers and solving their queries on Facebook. Neha
Tomar case (Amul Gold Milk pack which ended up in a stretchy chemical mass when they
tried to make cheese out of it. Amul resorted to the Social Media route to explain their stance
on the whole issue - the expired milk used by the complainant)

Supply chain Models


The systems that were introduced as part of E-SCM:
Supply side Procurement
1. Automatic Milk Collection Units (AMCUS) - at village societies to capture member
information, milk fat content, volume collected, and amount payable to each member
2. Dairy Information System Kiosk (DISK) kiosk would contain an extensive database
on the history of cattle owned by the farmers and details like medical history of the
cattle, reproductive cycle and history of diseases. It can also be used for access to
information related to milk production, including best practices in breeding and rearing
cattle.

Milk Processing and Marketing


3. Very Small Aperture Terminal (VSAT) To connect all its zonal offices, regional
offices and members dairies for seamless exchange of information.
4. Geographic Information Systems (GIS)
Used in its head office and key marketing offices to plot zone, depot and distributor
locations, which are superimposed by product-wise sales data which is then used for
sales and distribution planning according to the various zones.
It also captures the farmer-member census information, which includes animal census
data which further helps the organization to decipher information regarding milk
production and productivity of animals, region wise in Gujarat. This ultimately helps
in forecasting milk production according to the region and suggests remedies, if any,
for a region that has a lower milk production rate. The same GIS system can also be
used for monitoring veterinary health and controlling the outbreak of diseases.
Demand Side Distribution
5. Amul Cyber Store (B2C commerce) The cyber stores gifting service is capable of
servicing consumers in more than 125 cities.
6. B2B initiative - linked distributors to their network and also incorporated Web pages of
top retailers in their site amul.com. Distributors can place their orders on the website,
amulb2b.com, especially meant for accepting orders from stockists and promoting
Amuls products via e-commerce.
SAP ERP system which enabled to have a complete view of supply chain and integrate
GCMMF and district unions.
Business intelligence system which gave them an insight on all its products all over the
country and generated reports to manage the supply chain

Revenue Model
Online sales

Market Place Model