Dr K Rathnam discusses the importance of a long-term value chain in the dairy business

In the recent decade, India's demand for dairy products has increased. As a result of this link, more individuals are turning to dairy and its by-products to meet their daily demands. Dr K Rathnam, the CEO of Milky Mist, discusses the strategies that must be used to create a dairy value chain that is sustainable.

 "Logistics is one of the primary challenges that needs to be resolved," he says. This is due to the perishable nature of items, and only proper supply chain management can alleviate many market and quality-related difficulties. While Milky Mist has been effective in fixing the issues to a considerable part, this is not the case for other dairy producers. This is because, while we think of dairy as a large company, it is actually divided into smaller segments that are distributed unevenly between areas."

 Furthermore, big legislative reforms are radically altering the operating environment, moving the competitive edge in several Indian markets. The nation urgently need a solution to the challenges posed by such events, as well as the development of a potent blend of competencies and discipline. According to K Rathnam Milky Mist CEO, understanding the market's distinctive qualities, as well as supply and demand dynamics, is critical.

 Furthermore, major legislative reforms are fundamentally altering the operating environment in key Indian marketplaces, shifting the competitive edge. A solution to the challenges offered by such events, as well as the creation of a potent blend of abilities and discipline, are both critically needed by the country. Understanding the market's unique characteristics, as well as supply and demand dynamics, is crucial, according to K Rathnam.

 "The imbalance is not new," says Milky Mist's CEO, "since some trends have come and gone for years." What we need to thrive for, on the other hand, is to create a solution that addresses every aspect, from profitability to sustainability and beyond."

 Companies must shift their nexus to two key strategies in order to meet the dairy industry's requirements. First, they must put in place the correct foundation: fine-tuned, optimised processes and efficiencies throughout the value chain. They also require a value-creation plan in order to chart a path to long-term success.

 The dairy sector may use efficient operations and processes across the whole value chain when they are optimised. This applies to everything from upstream supply management to operations and go-to-market strategies.

 Dairy goods are recognized to be rated by their quality more than any other food commodity, which is determined by a number of upstream factors such as the feed supplied to cattle, shelf life, supply unpredictability, and cold-chain management. Yogurt and cheese, for example, are bacteria-based products that require specific attention. If quality deteriorates, it has an influence on both revenue and brand value.

 As a result, effective upstream supply management allows for the cost-effective provision of a reliable, high-quality supply. This approach is able to provide more useful product while still keeping an eye on the regulatory environment's complexities.

 Milky Mist has identified four approaches to control costs and improve productivity, according to Dr K Rathnam of Milky Mist. This includes improving plant operations tactically; reducing business complexity by removing less profitable SKUs and standardising the ones that are similar; continuously reviewing the plant network and formulating new strategies; and changing procurement practices, such as negotiation strategies, supplier management, country sourcing, and demand management.

 Problems are naturally eliminated when everything in the process is aligned. Furthermore, the brand's reputation rises to new heights, and, most importantly, smooth operation ensures increased revenue.