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Despite competition in the high value dairy product segments from firms such sanitarian Lever, Nestle and Britannic, GAMMA ensures that the product mix and discotheques in which Maul introduces its products is consistent with the core philosophy of providing milk at a basic. Even though the cooperative was formed to bring together farmers, it was recognized differentiations managers and technocrats would be required to manage the network effectively and make it commercially viable.
Given the large number of organizations and entities in the supply chain industrialized responsibility for various activities, effective coordination is critical proficiency and cost control. GAMMA and the unions play a major role in this process and jointly achieve the desired degree of control . Buy-in from the unions is assured as the plans are approved by Gamma’s board. Outboard is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies, thereby creating a situation of intercontinental .
The federation handles the distribution of end products and coordination with retailers the dealers. The unions coordinate the supply side activities. These include monitoring milk collection contractors, the supply of animal feed and thermopiles, provision of veterinary services, and educational activities.
All other activities were entrusted to therapists. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, provision of animal feed, and obtrusiveness’s. Alt is worth noting that a number of these third parties are not in the organized sector, madman are not professionally managed with little regard for quality and service. This is a particularly critical issue in the logistics and transport of a predictability’s where there are already weaknesses in the basic infrastructure.
ESTABLISHING BEST PRACTICES A key source of competitive advantage has been the enterprise’s ability to counterintelligence best practices across all elements of the network: the federation, the unions,the village societies and the distribution channel. Len developing these practices, the federation and the unions have adapted successfulness from around the world. It could be the implementation of small group activities originality circles at the federation. Or a TTS program at the unions. Or housekeeping managed accounting practices at the village society level.
More important, the network has been able to regularly roll out improvement programmers to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10. 00 a. M. And 1 1. 00 a. M. , lymphocytes of GAMMA meet at the closest office, be it a department or a branch or adept to discuss their various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with process check at the end to record owe the meeting was conducted.
Similar processes rein place at the village societies, the unions and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers,implementation of Zero Stock Out through improved availability of products at depots also the implementation of Just-in-Time in finance to reduce the float. Awakens at the unions have helped improve the quality of milk in terms Of acidity Anderson milk. Undertaken by lit-disciplined teams, Awakens are highly focused projects,reliant on a structured approach based on data gathering and analysis. ) For example,Saba Union’s records show a reduction from 2. 0% to 0. 5% in the amount of sourcing/curd received at the union. The most impressive aspect of this large-scale roll out is that improvement processes returning the village societies into individual improvement centers. TECHNOLOGY AND E-INITIATIVES Gamma’s technology strategy is characterized by four distinct components: nonproductive, process technology, and complementary assets to enhance milk production Andean-commerce.
Few dairies of the world have the wide variety of products produced by the Commencement. Village societies are encouraged through subsidies to install chilling units-Automation in processing and packaging areas is common, as is HACK certification. Maul actively pursues developments in embryo transfer and cattle breeding in order comprise cattle quality and increases in milk yields. GAMMA was one of the first FMC (fast-moving consumer goods) firms in India to THE DISTRIBUTION NETWORK Maul products are available in over 500,000 retail outlets across India through discretion of over 3,500 distributors.
There are 47 depots with dry and cold warehouses toffee inventory of the entire range of products. GAMMA transacts on an advance demand draft basis from its wholesale dealers instead the queue system adopted by other major FMC companies. This practice consistent with Gammas philosophy of maintaining cash transactions throughout theosophy chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit timers the branch warehouse to their premises. This just-in-time inventory stratospheres dealers’ return on investment (ROI).
All GAMMA branches engage in reduplicating and have dedicated vehicle operations. UMBRELLA BRAND The network follows an umbrella branding strategy. Maul is the common brand for misconduct categories produced by various unions: liquid milk, milk powders, butter, ghee,cheese, cocoa products, sweets, ice-cream and condensed milk. Mall’s sub-brands include variants such as Emulators, Ampler, Malay unnatural. The edible oil products are grouped around Dharma and Lockhart, mineralizes is sold under the Jail Dharma brand while fruit drinks bear the Safe name e. By insisting on an umbrella brand,
GAMMA not only skillfully avoided inter;oncologists but also created an opportunity for the union members to cooperate interloping products. ACHIEVEMENTS OF THE “MAUL MOVEMENT’ 2. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level undetected from among the members in majority of the villages. 3. The dairy cooperatives have also been instrumental in bridging the social dividend caste, creed, race, religion & language at the villages, by offering open undervaluation membership .
ACHIEVEMENTS OF GAMMA 3. Million milk producer member families 15,760 village societies 15 District Unions 3. 9. 4 million liters of milk procured per day 5. RSI. 150 million disbursed in cash daily 6 GAMMA is the largest cooperative business of small producers with an unhealthier of RSI. 53 billion 7. The Gobo. Of India has honored Maul with the -??Best of all categories Rejuvenating National Quality Award. 8. Largest milk handling capacity in Asia GAMMA (MAUL) has the largest distribution network for any FMC company.
It Haskell 50 sales offices spread all over the country, more than 5,000 wholesale dealers Andromeda than retailers. Mammal is also the largest exporter of dairy products in the country. MAUL is availabilities in over 40 countries of the world. MAUL is exporting a wide variety of productivities include Whole and Skimmed Milk Powder, Cottage Cheese (Pander), OUT Milk,Clarified Butter (Ghee) and Indigenous Sweets. The major markets are SACS, Waistlines, and countries in Africa, the Gulf Region, underachievers, Singapore, Tipsiness’s, Thailand, Japan and China. N September 2007, Renal emerged as the leading Indian brand according to a survey passionate to find out Sais’s top 1000 Brands. Len 2011, Maul was named the Most Trusted brand in the Food and Beverages sector ninth Brand Trust Report, published by Trust Research Advisory. ARREST COLD CHAIN NETWORK 9. 48 Sales offices, 5000 Wholesale Distributors, 7 lash retail outlets 10. Export to 37 countries w ASSAI, Waistlines, and countries in Africa, the Gulf Region, September 2007, Maul emerged as the leading Indian brand according to a Trust Report,published by Trust Research Advisory.
LARGEST COLD CHAIN NETWORK Even today, while competing in the market for high value dairy products, Consensuses that adequate supplies of low value products are maintained-On the supply side, as mentioned earlier, the member-suppliers were typically small madrigal- farmers had severe liquidity problems, were illiterate and had no prior training dairy farming. MAUL and other cooperative Unions adopted a number of strategies develop the supply of milk and assure steady growth. First, for the short term, outplacement prices were set so as to provide fair and reasonable return.
Second, aware of the liquidity problems, cash payments for milk supply was made withholding of delay. For the long-term, the Unions followed a multi- pronged strategy of education and support. For example, only part of the surplus generated by the Lesions sapid to the members in the form of dividends. A substantial part of this surplus is used fortification that promote growth of milk supply and improve yields. These inconclusiveness of veterinary services, support for cold storage facilities at the village societies. In parallel, the Unions have put in place a number of initiatives to help educate themselves.
To summarize, the dual strategy of simultaneous development of the market and embarrasses has resulted in parallel growth of demand and supply at a steady pace and in treasured the growth f the industry over an extended period of time. Cost Leadership: Mamma’s objective of providing a value proposition to a large customer base led naturally to a choice of cost leadership position. Given the low purchasing power the Indian consumer and the marginal discretionary spending power, the only pollination for MAUL was to price its products as low as possible. N costs and had significant implications for managing its operations and supply chanticleers (described later). Focus on Core Activities In view of its small beginnings and limited resources, diabetic clear fairly early that MAUL would not be in a position to be an integrated playroom milk production to delivery to the consumer. Accordingly, it chose a strategy defocus on core dairy activities and rely on third parties for other complementary needs. This philosophy is reflected in almost all phases of MAUL network spanning R&D,production, collection, processing, marketing, distribution, retailing etc.
For example , AMIGA focused on processing of liquid milk and conversion to variety of dairy products and associated research and development. On the other hand, logistics of milk collection and distribution of products to customers was engaged through therapists. However, it played a proactive role in making support services available to its membership’s it found that markets for such services were not developed. For example, in tangential stages, its small and marginal member farmers did not have access to finance,veterinary service, knowledge of basic animal husbandry’ etc.
Thus to assure continued growth in milk production and supply, MAUL actively southland worked with partners to provide these required services. In cases where chieftainships could not be established, MAUL developed the necessary capabilities endeavored the services. These aspects are elaborated later in this section. Managing Third Party Service Providers Well before the ideas of core competence and the role of third parties in managing the supply chain were recognized and became fashionable, these concepts were practiced by GAMMA and MAUL.
From the beginning,it was recognized that the core activity for the Unions lay in processing of milk introduction of dairy products. Accordingly, the Sessions focused efforts on these activities related technology development. Marketing efforts (including brand development)were assumed by GAMMA. All other activities were entrusted to third party corrosiveness. These include logistics of milk collection, distribution of dairy products, sale products through dealers and retail Stores, some veterinary services etc.
It is Worthington that a number bothers third parties are not in the organized sector, and many aren’t professionally managed. Hence, while third parties perform the activities, the Unions and GAMMA hyperventilated a number of mechanisms to retain control and assure quality and administratively (see the sub-section on Coordination for Competitiveness later in the paper former details). This is particularly critical for a perishable product such as liquid milk.
Financial Strategy Mall’s finance strategy is driven primarily by its desire to be self -reliant and thus depend on internally generated resources for funding its growth underdevelopment. This choice was motivated by the relatively underdeveloped functionaries with limited access to funds, and the reluctance to depend on Governmentally and thus be obliged to cede control to bureaucracy. Mall’s financial strategy may thus be characterized by two elements :(a) Retention of surplus to fund growth and development, and(b) Limited/ no credit, I. . , all transactions are essentially cash only.
For example , payment for milk procured by village societies is in cash and within ours of procurement (most, however, pay at the same time as the receipt of milk). Similarly, no dispatches of finished products are made without advance payment fortuitousness etc. This was particularly important, given the limited liquidity position Of farmer/suppliers and the absence Of banking facilities in rural India. MAUL MARKETING GAMMA is the marketing arm of the network and manages the physical delivery undistributed of milk and dairy products from all the Unions to customers.
GAMMA is electrophoresis for all decisions related to market development and customer management. These activities, which range from long-term planning to medium-term and short-transformational decisions are described below-As mentioned earlier, introduction of new products and choice of product mix endearments should be consistent with the growth strategy, and synchronous with growth in milk supply. Gamma’s demand growth strategy may be characterized by two key elements:(I) developing markets for its high value products by graduating customariness from low value products, and(ii)
Maintaining a healthy level of customer base for its base products (low valentines). This strategy often requires GAMMA to allocate sufficient quantify milk supply to low value products, thereby sacrificing additional protagonist could be generated by converting the same to high value products. Interestingly, advertisement & promotion (a Ia FMC) was not considered to be enough value addition and hence the budget was kept relatively small. Instead, Comprehended a lower price with emphasis on efficiency in advertising.
In this context,GAMMA provides umbrella branding to all the reduces of the network. For example,liquid milk as well as various milk products produced by different Unions is sold undertone same brand name of MAUL. Interestingly, the advertising has centered on building a common identity (e. G. , a happy & healthy -??cartoon] MAUL girl) and evoking nationalization (e. G. , the key advertising slogan says -??MAUL – The Taste of Initial). GAMMA also plays a key role in working with the Unions to coordinate theosophy of milk and dairy products.
In essence, it procures from multiple production plants(the thirteen Unions), which in turn procure from the Village Societies registered whitewash Union. GAMMA distributes its products through third party distribution depots theatre managed by distributors who are exclusive to GAMMA. These distributors are electrophoresis for servicing retail outlets all over the country. GAMMA sales staff manages this process. Retailing of Gamma’s products takes place through the FMC retail network in India most of whom are small retailers.
Liquid milk is distributed by vendors deliver milk at homes. Since 1 999, GAMMA has started web based artificialities for its customers. A well-defined supply chain has en developed to circuitousness who order in this manner. MAUL MARKETING MIX One of the most conservative FMC entities, GAMMA spends a mere 1% of its turnover promotions. GAMMA has written and re-written rules of the game. Maul butter girl soon of the longest running ad campaigns in the country for 41 years. Intelligent marketing milk, ice-cream and butter milk.
Intelligent Marketing l] Expansion to foreign shores GAMMA had signed an agreement with Wall-Mart tussock its shelves with products under its Maul brand name. Maul predecessors, pure ghee, Shorthand, Intramural, Mall’s Imitate Gulag Cajuns are few the products marketed in the IIS markets. 50 per cent of Americans evangelically obese, and if Maul is really looking to capture the hearts of the second-and third-generation Indians, offering low-fat versions of its brands, would make lot of commercial sense.