Supply Chain Management at GCMMF

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Case Details:

Case Code : OPER057
Case Length : 14 Pages
Period : 1991 - 2006
Organization : GCMMF, AMUL
Pub Date : 2006
Teaching Note :Not Available
Countries : India
Industry : Dairy Products

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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GCMMF's Product Portfolio

GCMMF began as a milk supplier and slowly added new products to its portfolio. One of the first products that it produced was butter; skim milk powder followed and ghee (clarified butter) in 1955. Gradually, several other products were added. GCMMF sold different varieties of milk like full cream milk, semi-toned milk, and full-toned milk. The fat content in the milk was reduced and the fat removed was used to make products like cream and butter, which yielded higher margins.
In the 1970s, GCMMF introduced cheddar cheese, a malt based beverage called Nutramul, and chocolates. Cheese spread was launched in 1983. In the same year, a sweet made of curd known as Shrikhand was also introduced...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

GCMMF's Supply Chain

At the start of the GCMMF's supply chain were the farmers who supplied the milk to the VCSs. The district unions processed the milk and took care of making the final product.

GCMMF was the marketing agency for the products produced by different milk co-operative member societies in Gujarat and some unions in other states, which marketed their products under the brand name Amul. In 2005, GCMMF had 12 district milk unions, with each union having one or more manufacturing units producing different Amul products. GCMMF's large product portfolio called for efficient procurement and distribution in order to ensure product availability across the country. The essential elements of GCMMF's supply chain management included milk production, procurement, transportation, processing, packaging and distribution of final products like butter, cheese, ice-cream, etc. to the customers...


Activities at the village level comprised developing and servicing the VCSs, increasing milk collection, procuring milk, and transporting it to the chilling and processing units twice a day. Earlier, one of the problems had been the inadequate feeding of animals, because of which milk production from them was low. The VCSs provided the farmers with good quality animal feed, fodder, and other services like veterinary first aid...

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