In India, the milk and dairy products industry is one of the largest and fastest-growing industries. Despite being one of the largest dairy producers in the world, India till today has kept this in a traditional manner, where the production and distribution are done on a local or village basis. Keeping aside the diversity of the country, we can say that milk and dairy products are one of the significant staple consumption products of the people. This is a part of daily routine and food habits, taking into consideration the nutritional values and benefits it offers.
The Hindu majority of the country also uses milk on a larger scale in various rituals, and this industry has also increased by more than 6 percent on an annual basis. The milk distribution business is a long one that either starts with collecting milk directly from the local farmers who own cattle or even from the milk processing or manufacturing plants, which would then be distributed using wider channels like Amul, Milma, etc.
The milk distribution business is one of the industries with good opportunities in the country. It also allows for the setting up of small business entities in the country, which helps in strengthening and developing the country’s economy.
This article discusses how you can set up a perfect milk distribution business.
How to set a perfect Milk Distribution Business
For setting up a perfect milk distribution business, one can follow the points discussed below:
Create a Plan
Firstly, a detailed plan should be made for your milk-distributing business. Say the area of service: Are you setting an offline brick-and-mortar outlet, or will you be accepting orders from consumers via websites, applications, calls, or WhatsApp? If the outlet is being set up, where would the location be? If the online or on-call services are also incorporated, which areas would be provided with the service? All these decisions should be made in the form of a business plan.
Deciding on the Products
This is a crucial part, as when the area and the platforms through which the services will be made are fixed, you should know what products are in greater demand and in higher demand as far as your consumers are concerned. Say, there are multiple products like tofu, paneer, cheese, yoghurt, buttermilk, ice creams, etc., which can be sold along with the milk in the outlet. But all these products may or may not be in demand as far as your area of consumers is concerned. Hence, it is vital to study this and decide on the products to be sold. Here, one point to keep in mind is that dairy products are perishable and should be sold faster, which is why it is essential to procure and sell fast-moving ones first and then add them to the list on a later basis.
Finding a Delivery System for Your Products
Unlike any other system, milk will be preferred by its consumers to be delivered at a fixed time in the morning or the evening. So, sticking to this time and ensuring timely delivery is really important. So, choosing a delivery system that would help you reach your consumers at the right time and right place should be given importance. And here, one more point should be taken care of, as you should be sticking to the area set for delivery. Crossing this will affect the profit margin earned, which would eventually affect the return on the investment made.
Using Technology and E-Commerce
Everything is online today as technology and the use of the internet are advancing daily. So, it is essential that a business in the modern era also adopts e-commerce or technology platforms to accept orders from consumers. How this can be established and utilized is a point to be planned and decided.
Understanding the Business
This is about understanding the risk involved with respect to the product and the consumers you are dealing with. Say the product, which is dairy or milk, is perishable, and the consumers expect it to be fresh and delivered on time. The perishability of milk also gives rise to quality issues, so it is important that you deal with all these points before making any decisions.
Consumer Base
Here is a business: you should understand your target consumers or the consumers you are focusing on the most. This will help you set a base of consumers who are likely to purchase the goods or products from your entity or place an order. So, it is based on them that you should stock and list the products.
Funding the Business
Again, this is based on a model that would help you finally set up a business by acquiring all the assets and resources required to start the service and develop the goods or products. But you must have an idea of how much return can be earned and what the growth prospects are. Keeping all this in mind, the funding should be done.
Permits and License Acquiring
These are basically the legal permissions required to avoid any legal hassles. The entity should register as a firm, company, LLP, or other form, take FSSAI or Food Safety and Standards Authority of India registration, and complete all the documentation.
Location and Warehouse or Storage
This is another crucial factor, as the location of the entity and the warehouse or storage unit for the products should be decided upon. This should not only be easily accessible to the targeted consumers but also in a location that can ensure feasible delivery of the products as per the order.
