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LOGISTICS PROJECT ON

ORGANISED BY:

PRADEEP YADAV (02) MIHIR AMBARDEKAR (11) MITHUN SAGAR (20) SAMEER AYIR (22)

DHARIT PARIKH (24) E.VINOD KUMAR (28)

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INTRODUCTION TO AAREY•Background

•USP

•STP

•Products

•Competition

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BUSINESS MODEL

Government Owned organization

District Milk Processing Unions

13 District Unions

Village Co-operative Societies

13,328 VCS

Individual Milk Producers2.79 Millions

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BIRDS EYE VIEW

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LOGISTIC Outsourcing of Logistics

Third – Party Logistics Fourth – Party Logistics

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3P INBOUND LOGISTICS

Suppliers / Farmers

Village Co op.

Societies

Aarey

Unions

Milk Supply

Coordination & Planning Activities

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3P OUTBOUND LOGISTICS

Unions

Aarey

Retailers(Booths)

Coordination & Planning Activities

Customers

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Kinds of Logistics: Procurement Production Distribution Disposal Reverse

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MILK PROCUREMENT PROCEDURE

Milk is collected from Talukas

Quality check at Taluka

District for Pasteurizing

Cleaned & Re-pasteurized in Mumbai

Transporter to Booths

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MILK COLLECTION PROCESSWeighing of

the milk

Determination of fat content

Calculation of purchase

price

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ROLE OF CHILLERS What Are Chillers

Importance during Pasteurization process

Temperature Requirements

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Sr.No DETAILS RATE Rs/Ltr.1 Internal transport 1.152 Can expenditure 0.053 Management expenditure 0.454 Chilling expenditure 0.355 Total Commission to Sangh 2.006 Commission to Society 0.907 Total Commission 2.90

COST CALCULATION

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PRICE OF MILKScheme Type of Milk Consumer

Price for1 Ltr (Rs.)

Consumer Price for 

1/2 Ltr(Rs.)

Greater Mumbai Milk Scheme

1.Cow Milk2.Full Cream

Milk3.Buffalo Milk4.Tonned Milk

29.0037.0037.0028.00

14.5018.5018.5014.00

Rest of Maharashtra

1.Cow Milk2.Full Cream

Milk3.Buffalo  Milk4.Tonned Milk

28.0036.0036.0027.00

14.0018.0018.0013.50

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COMMISSION FOR MILK DISTRIBUTOR

Sr.No.Milk Sale Quantity

(Ltr.)

Distributor commission  per Ltr. (Rs.)

Transport Cost    per Ltr. (Rs.)

Total Commission 

per Ltr. with Trasport

Cost (Rs.)(3+4)

1 2 3 4 51 1 to50 1.30 0.70 2.002 1 to 100 1.55 0.70 2.253 1 to 200 1.80 0.70 2.504 1 to 300 2.05 0.70 2.755 1 to above

300 2.30 0.70 3.00

COMMISSION FOR MILK DISTRIBUTOR

Sr.No.Milk Sale Quantity

(Ltr.)

Distributor commission  per Ltr. (Rs.)

Transport Cost    per Ltr. (Rs.)

Total Commission 

per Ltr. with Trasport

Cost (Rs.)(3+4)

1 2 3 4 51 1 to50 1.30 0.70 2.002 1 to 100 1.55 0.70 2.253 1 to 200 1.80 0.70 2.504 1 to 300 2.05 0.70 2.755 1 to above

300 2.30 0.70 3.00

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MILK BOOTHS Need for Milk Booths

Types and No of Centres Milk Centre Aarey Sarita

Centres across Maharashtra

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BOOTH MANAGEMENT Leasing of individual centre

Quantity of milk

Co-ordination with Transporter

Refrigeration

Wastage Handling

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GOVERNMENT POLICIES Role of policies before and after Liberalisation

Allowing private players to participate

Allocation of funds

Subsidies granted by the government

Political Intervention

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MILK MUST REACH

CONSUMER AT THE RIGHT

TIME AND OF GOOD QUALITY

GOVERNMENT

AVAILABILITYPROCESSING

METHOD

MANPOWER

PRICING POLICIES

POLICIESPROCUREMENT

TRANSPORTATION

PROCESSING

AVAILABILITY

PRODUCTIVITY

UNIONMOTIVATION

MAINTENANCE

LOADSHEDDING

BREAKDOWN

SHORTAGE DURING LEAN & FLUSH SEASON

RAW MILK

QUALITY OF FODDER

QUALITY CONTROL

DISTRIBUTION

EXTERNAL

INTERNALUnforseen Situation

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