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Retail Procurement Model Wholesale Procurement Model

The retail procurement model involves sourcing milk from small and large dairy farmers without establishing dairy farms. A dairy company supplies milk coolers and testing equipment to agents, who are responsible for collecting, chilling, and testing milk. The agents bear the costs of running the milk chilling centers and supply milk of standard quality and volume to the company.

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Samarth Dargan
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59 views1 page

Retail Procurement Model Wholesale Procurement Model

The retail procurement model involves sourcing milk from small and large dairy farmers without establishing dairy farms. A dairy company supplies milk coolers and testing equipment to agents, who are responsible for collecting, chilling, and testing milk. The agents bear the costs of running the milk chilling centers and supply milk of standard quality and volume to the company.

Uploaded by

Samarth Dargan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Executive

Summary

Retail
Procurement
Model
Involves sourcing milk
from small & large dairy
farmers without
establishing dairy
farms(through work with
milk procurement agents)
The company supplies
the agents with milk
coolers (Bulk Milk Tanks/
Vat) and necessary
equipment for
performing routine milk
testing at a milk chilling
The costs of running the
center.
milk chilling center are
usually borne by the
agent
The agent has a
contractual obligation to
supply milk of standard
quality and predetermined volume to
the dairy company.

Indian Dairy
Market Analysis

Estimation of
Growth Potential

Wholesale
Procurement
Model

Industry and Entry


Challenges

Market Entry
Strategy
Retail Procurement Model
Wholesale Procurement Model
Wholesale Procurement Model(Self Managed)

Quality assurance
Enter into an alliance with third
party to supply the milk. Or
5
acquire a well established
cooperative which will enable the
Investment requirement
Labour & Manage
company to make use of preexisting network
Through this approach large
volumes of milk can be sourced
from one or few suppliers, thus
preventing the need to establish
0
and develop the elaborate
infrastructure required for sourcing
Company brand equity effectiveness
Sustainabilit
milk directly from producers.
Third party could also perform the
task of processing milk or
manufacturing products as per the
specifications of the dairy
company, thereby eliminating the
need to establish a processing
Infrastructure adequacy
Risk Issues
While in case of acquiring a well
plant
establish cooperative, it gives a
wide network and more quality
assurance as processing will be

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