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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Introduction Contd...

It had also expanded globally to countries in the Middle East, Africa, and to the US. The export earnings of GCMMF were Rs. 1.15 billion in the financial year 2004-05.

GCMMF was owned by a chain of farmers who had formed a network of cooperative societies. Milk was collected from more than 2.4 million farmers in 11,615 villages twice a day, and tested, graded, and transported to the processing centers.

GCMMF's products were marketed through 50 sales offices located across India to 4,000 stockists. These stockists supplied the products to more than 500,000 retail outlets.

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

According to Verghese Kurien (Kurien), former Chairman, GCMMF, "Amul is the epitome of a unique model of cooperative development called the Amul Pattern. It is also the spearhead of the cooperative movement in India. It has empowered farmers through skills of procurement, processing, marketing-and more recently of being in direct touch with the customer through retailing. This ensures not only fair returns for milk produced, but also a never before closeness to the market facilitating a real time feel of its pulse."5


The seeds of the cooperative movement, which helped turn India into the largest milk producer in the world by 2000, were sown in 1946 in Samarkha, when a farmers' meeting was called by Morarji Desai (Desai), (who later became the Prime Minister of India) on the advice of Vallabhbhai Patel (who became the first home minister of India). Desai and Vallabhbhai Patel assigned Tribhuvandas Patel (Patel), a local farmer and freedom fighter, the task of organizing the farmers into a cooperative unit. The cooperative found its place in history by becoming the first cooperative milk society in India that went on to break the system of middlemen.

Earlier, in 1945, the distribution and supply of milk in Mumbai (earlier known as Bombay) was managed by Polson Dairy, which obtained the milk from Kaira district in Gujarat. Polson gave the milk producers a very low price for the milk. Patel encouraged the milk producers to form cooperatives to combat the monopoly of Polson Dairy...

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5]  "Chairman's Speech: 31st Annual General Body Meeting,", June 23, 2005.


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