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Amul Distribution

Kandarp V presented on FMCG distribution practices at GCMMF Ltd. in Ahmedabad. GCMMF distributes products through a network of 51 depots, over 5,000 wholesale dealers, and 5.5+ lac retailers. The distribution network is tailored based on product storage requirements, service frequency, shelf life, and target markets. For rural and scattered distribution, GCMMF uses a hub-and-spoke model with depots as hubs and wholesale dealers and sub-dealers extending distribution depth and width into rural areas in a cost-effective manner.

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gaurang
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263 views

Amul Distribution

Kandarp V presented on FMCG distribution practices at GCMMF Ltd. in Ahmedabad. GCMMF distributes products through a network of 51 depots, over 5,000 wholesale dealers, and 5.5+ lac retailers. The distribution network is tailored based on product storage requirements, service frequency, shelf life, and target markets. For rural and scattered distribution, GCMMF uses a hub-and-spoke model with depots as hubs and wholesale dealers and sub-dealers extending distribution depth and width into rural areas in a cost-effective manner.

Uploaded by

gaurang
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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26 Lacs

farmers
35 dairy
processing
plants

100 Lac ltr


per day

7 lac houses
in
Ahmedabad
Distribution & Logistics Practices
In
FMCG Organisations

Kandarp V
GCMMF Ltd., Ahmedabad
FMCG & Distribution
• Fast Moving Consumer Goods
• Low shelf life, faster consumption
• Small quantity
• Broad consumer base, scattered markets
• Faster funds rotation
• Highly fluctuating demand estimation
Typical Distribution Channel
Company-
Production/Marketing

Depot Storage

Distributor/Wholesale Institutions
Trader

Retailer

Consumer
Functions of Distribution Channel
• Efficiency to manufacturers
• Supply of products in Required Assortments
• Provide Salesmanship-Presale and after Sales
Services
• Merchandise the product
• Implement Price Mechanism
• Physical Distribution and Financing Functions
• Act as Change Agents and Generate Demand
Depot - C & F Agent
• Depot/Branch
• Invoicing
• Carrying & Forwarding Agent
– Reputed business house
– Custodian of goods at Depot location
– Maintenance of stock- FMFO
– Dispatch, Loading and unloading of goods
– Arrange delivery of stocks/POPs to upcountry WDs
Distributor
• Distribution of the products in allocated territory
• Regular order booking, dispatch of products to
retailer
• POP material at retail level
• Schemes and discount, promotional activities
• Demand estimation, feedback
• Product replacement
• Storage
• Expansion of retail universe
Retailer
• Selling of product to consumer
• Storage
• POP display
• Schemes, discount, consumer promotions
• Demand estimation
• Feedback from consumer
Selection of Channel Members
• Financial capacity
• Market reputation
• Operational ability
• Prior experience in FMCG
• Positive attitude
Motivation & Evaluation
• Return on Investment
• Confidence of retailers and consumers in the
product
• Reputation of the company
• Brand Value
• Future growth potential
• Innovations

• Continuous monitoring & evaluation- actual Vs


Potential
PRACTICES AT AMUL
Origin And History
• Late 70s –Early 80s –The brand building era
• Monopolistic environment
• Major focus on Procurement and Processing
• Distribution through third parties
1. Spencers-South and East
2. Omprakash & Co. – North
3. Voltas-For Powders across the country
Birth of a new Distribution era….
• Anticipating new changes in market scenario -
Shift of thrust
• Focus on Distribution Network
• 1977- 82-Foundation of Federation’s own
Distribution network
• 18 Depots initially –Own operations
• Appointments of WC &F
• Expansion of WDs
GCMMF TODAY
• Sales Turnover Rs.9700 crore (est 2010-11)
• 5 Zones
• 51 Depot Offices
• 5000+ Wholesale Dealers
• 5.5+ Lac Retailers
• Modern Format Stores
• Overseas Operations in 41 countries
Distribution Highways
Ambient (25-30° C Temperature)

Chilled (0-4° C Temperature)

Frozen (-20° C Temperature)

Fresh (Daily Service)


Distribution Highways
• Product Storage requirement

• Service Frequency

• Shelf life of product

• Target Market
Rural & Scattered Distribution
• Concept of feeder market
• Hub n Spoke Model
• Depth and Width of Distribution
Depot
Depot
Super WD
WD WD
Sub
Dealer
Retailer Retailer
Retailer

consumer Consumer
Consumer
Hub n Spoke Model
Spoke • Distribution Depth-
Spoke Spoke rural and scattered
markets
Hub
• Cost effective
Spoke
Spoke
• Encashing market
opportunities
Spoke • Broadening of
Spoke
consumer base
Thank You!

[email protected]

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