The Consulting Simulation Room
Operations & Supply Chain Cases

Amul’s Cold Chain Logistics in India

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Amul Cold Chain Logistics - Interactive Case Interview

Amul Cold Chain Logistics

00:00
RS
Rajesh Sharma
Partner, Operations Practice

"Good morning! I'm excited to discuss a critical operations challenge with you today. Our client is Amul, India's largest dairy cooperative. Let me give you some context..."

Client Context: Amul Dairy Cooperative

Amul (Anand Milk Union Limited) is India's largest dairy cooperative, owned by 3.6 million milk producers. Key facts:

  • Daily milk collection: 26 million liters
  • Product portfolio: Milk, ice cream, butter, cheese, chocolate
  • Distribution network: 10,000+ distributors, 1 million+ retail outlets
  • Annual revenue: ₹61,000 crores (~$7.5 billion)
  • Market share: 35% in organized dairy sector

The Challenge

Amul is experiencing significant product spoilage in their cold chain, particularly for ice cream and frozen products. Last quarter, they reported ₹120 crores in losses due to temperature excursions. The CEO has asked us to help optimize their cold chain logistics to reduce spoilage by 50% while maintaining their rapid growth trajectory.

Key Metrics Dashboard

Structure Your Approach

How would you approach this cold chain optimization challenge? Select a framework:

End-to-End Supply Chain Analysis
Analyze each node from farm to retail: Collection → Processing → Storage → Distribution → Retail
Cost-Service-Quality Triangle
Balance operational costs, service levels, and product quality in cold chain design
Root Cause Analysis
Identify failure points: Equipment, Process, People, or External factors
RS
Rajesh Sharma
Partner, Operations Practice

"Good framework choice. Now, what information would you need to diagnose the cold chain issues?"

Ask Clarifying Questions

You can ask up to 5 questions. Choose wisely - each question reveals different data.

Spoilage Patterns
Where and when does spoilage occur most frequently?
Temperature Monitoring
What temperature data do we have across the supply chain?
Cold Chain Infrastructure
What is the current state of refrigeration equipment and vehicles?
Competitive Benchmarks
How does Amul's spoilage rate compare to competitors?
Seasonal Variations
How do spoilage rates vary by season and geography?
Inventory Management
What are the inventory levels and turnover rates?

Questions remaining: 5

RS
Rajesh Sharma
Partner, Operations Practice

"Now let's dive into the numbers. Analyze the data to identify the key drivers of spoilage and calculate the potential impact of improvements."

Spoilage Analysis by Supply Chain Stage

Stage Volume (Million L) Spoilage Rate Loss (₹ Cr) Temp Range
Collection Centers 26.0 0.5% 8 4-6°C
Processing Plants 25.9 0.3% 5 2-4°C
Cold Storage 25.8 1.2% 22 -18 to -22°C
Transportation 25.5 2.8% 53 Varies
Distributor Storage 24.8 1.5% 28 -15 to -20°C
Retail 24.4 0.2% 4 -18°C

Calculate Improvement Opportunity

If we can reduce transportation spoilage from 2.8% to industry best practice of 0.8%, what would be the annual savings?

Root Cause Deep Dive: Transportation

Transportation Breakdown:

  • 45% - Temperature excursions during loading/unloading
  • 30% - Equipment failure (refrigeration units)
  • 15% - Route delays (traffic, breakdowns)
  • 10% - Improper handling by drivers
RS
Rajesh Sharma
Partner, Operations Practice

"Good analysis. Now, what are your key insights and how would you prioritize the improvement initiatives?"

Synthesize Your Findings

Based on your analysis, rank these insights by impact and feasibility:

Temperature Monitoring Gap
70% of vehicles lack real-time temperature monitoring, causing delayed response to excursions
Loading Dock Exposure
Average 45-minute exposure during loading causes 2-4°C temperature rise
Maintenance Backlog
30% of refrigeration units are overdue for preventive maintenance
Route Optimization
Current routes average 15% longer than optimal due to manual planning

Your Prioritization:

  1. Click insights above to prioritize
RS
Rajesh Sharma
Partner, Operations Practice

"Excellent work so far. Now, please present your final recommendation to Amul's CEO. You have 60 seconds."

Structure Your Recommendation

Organize your recommendation using this structure:

1. Executive Summary
State the key recommendation upfront
2. Supporting Data
Quantify the impact and investment required
3. Implementation Roadmap
Outline the phased approach and quick wins
4. Risks & Mitigation
Address key concerns and next steps
Score
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