The company’s strength is essentially the distribution of its product. The distribution logistics is the industry’s main problem. While the other companies fail to replenish demand due to lack in procurement of raw material , KC Dairy inventory management is sound.
KC Dairy has loyal cooperatives that provide products only to them, over time the relationship of trust has built up with these people that KC Dairy leverages now.
The transport channel is another strong point for KC Dairy. As these transporters have grown with the company overtime; the bonding with them enables the company to give least margins when it comes to the distributors in the industry, lowering the costs.
KC Dairy is able to provide products at competitive price in the industry, and is able to give least channel margins as the channel members earn through volumes and not through high margins.
Because of the strong relationship that KC Dairy shares with the constituent channel members, it makes the channel members to carry all its new products.