Mother Dairy - Supply Chain

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Supply Chain of Mother Dairy

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SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT OF Presented By: Dinesh Taparia

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Mother Dairy, set up in 1974, is a wholly owned subsidiary of National Dairy Development Board (NDDB) of India. Mother Dairy manufactures, markets & sells milk and milk products under the Mother Dairy brand (Milk, Cultured Products, Ice Creams, Paneer and Ghee), Dhara range of edible oils, Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed Fruit & Vegetable Products, Fruit Pulps & fruit juices. Mother Dairy is an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004 (EMS) certified organization. Mother Dairy has Certificate of Approval from Export Inspection Council of India also. About Mother Dairy

Cont…..:

Cont….. Currently, it is one of the largest milk (liquid/unprocessed) plants in Asia selling more than 25 lakh litres of milk per day, thereby enjoying a market share of 66% of the branded milk sales in Delhi. Other important markets include Mumbai, Saurashtra and Hyderabad. Mother dairy ice-cream was launched in the year 1995 and has shown continuous growth over the years, and today it boasts approximately 62% market share in Delhi and NCR.

PRODUCT PROFILE:

PRODUCT PROFILE

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Supplier Processing Plant Distributor Retailer Customer DIRECTION OF MOVEMENT OF CHAIN THE RIGHT PRODUCT HIGHER PROFITS THE RIGHT TIME THE RIGHT CUSTOMER THE RIGHT QUANTITY THE RIGHT STORE THE RIGHT PRICE = + + + + +

Process of Procurement & Distribution of Milk:

Process of Procurement & Distribution of Milk Farmers and the Milk Co-operative Society: Mother Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. Milk is received from farmer cooperatives through insulated road/rail tankers at very low temperature in order to retain its freshness.

CHECKING THE QUALITY OF MILK:

CHECKING THE QUALITY OF MILK At the Dairy stringent hygienic standards are maintained. The milk in the tankers is first checked for quality and freshness and then unloaded into huge insulated stainless steel storage tanks. These tanks have a capacity of 1 lakh liters each. Once empty, the tankers are thoroughly cleaned and sanitized using acid and alkali. The tankers are then finally rinsed with water. The presence of impurities like urea, neutralizers, preservatives and germs like bacteria are checked. All these tests ensure that only good quality milk is accepted.

PROCESSING OF MILK:

PROCESSING OF MILK Processing of milk Unprocessed milk may contain small dirt particles invisible to the naked eye. In order to remove these particles the milk has to be processed.

PROCESSING OF MILK:

PROCESSING OF MILK At mother dairy, the processing of milk is done by process automation whereby state of the art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/reliability and safety. There are four ways of milk processing – Firstly , Clarification, in which milk is spun at very high speed, removing all dust particles that are invisible to the naked eye. Secondly , Standardisation which help to milk maintain uniformity by raising or lowering its fat and SNF (solid not fat) percentage to a desired levels, so as to deliver milk to consumers as per prescribed PFA norms. Thirdly , it is Homogenization which improves palatability of milk and Finally , Pasteurization, which kills all pathogenic bacteria present in the milk and thus making it safe for consumption. In case of packaged milk, the processing goes through only three processes (excludes homogenization).

DISPATCHING OF MILK:

DISPATCHING OF MILK After processing, the milk is chilled and stored in silos and further chilled to about 2 Degree Celsius by the glycol chilling system, and then dispatched to the Milk Shops in insulated road milk tankers. Prior to the milk being dispatched in tankers, it is tested for quality to make sure that it meets the quality standards. When the tanker arrives at the shop the milk is transferred into a large refrigerated tank. 79 tankers in the morning and 75 tankers in the evening bring in milk from the regional collection centres. After collection the same tankers are utilized for the delivery of the processed milk to the vendors and outlets.

Cont…..:

Cont….. Mother Dairy has over 820 Milk Distribution Outlets in the National Capital Region. Each of these outlets place their demand by raising an invoice one day in advance. The demand is also calculated using the ‘Calendar’ Scheme, in this depending on the pre-calculated seasonal demands the outlets place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres each day so that they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers are equipped with HAM radios.

Distribution Channels::

Distribution Channels: Token Distribution: Also, termed as “ Lohe ki bhains ” (Metal Buffalo), is an automated milk vending machine. COW: Container on Wheels or COW is a manual milk distribution program in which cycle-rickshaws are employed for milk distribution. Retailers: The packaged milk is distributed via the retailer network throughout the city.

QUALITY CONTROL:

QUALITY CONTROL Stringent quality control methodologies are employed in Mother Dairy. The milk is tested for adulterations and quality at the time of collection from the farmers. The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a temperature of not more than 7°C and is subjected to 15 product and quality checks. The Milk quality is checked repeatedly after each processing phase and the temperature is judiciously maintained less than 5°C always. Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again. The temperature of milk in the delivery trucks is always maintained less than 7°C.

Cont…..:

Cont….. All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after distribution. This is done in order to test the delivered milk and to ensure that the tankers are not adulterated during distribution. Since all the employed processing procedures are automated, no contamination by human hands takes place. To ensure milk freshness the collection and distribution points are always chosen such that the travel time between them is always less than 36 hours.

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