Milk run

A milk run, in logistics, is a round trip that facilitates either distribution or collection.

The terms are defined by the customer or by the service providers. Here, the exact number of suppliers, each of which defines the available volume and weight, and the time window for collection from the respective suppliers and the time window for delivery to the customer. With consistent planning, capacity increases to an average of 90% can be achieved.

On the round trips are either goods collected from several suppliers and transported to one customer, or goods collected from one supplier and transported to several customers. In contrast to the groupage traffic, there is no handling, except to transport the goods.

Something more specialist, the Milk-run is described as a concept that is a sequential collection of goods from multiple sources and the direct service to the customers without intermediate handling features of the goods. As a prerequisite for the Milk-Run approach is the spatial proximity between the supplier and the customer.

The procedure for development of a Milk-Run-Concept consists of the following steps:

The main benefit of milk runs is, according to common opinion in literature, in the higher utilization of trucks and the resulting reduction of transport costs by up to 30%. In addition, the reduction of stock, both at the supplier side and at the customer side, avoidance in delays at the loading ramp, due to the consolidation of several suppliers and the specified time windows, high security planning and integration of reusable container recycling.

The literature completely ignores the reduction of pollution of the environment, both by consolidation and the resulting higher utilization of trucks, and by the reduction of transportation vehicles, compared to JIT or groupage traffic.

The disadvantages of the Milk run are the following:

The phrase "milk run" originates in American culture, with the distribution of milk bottles by the milkman. On his daily route, the milkman simultaneously distributes the full bottles and collects the empty bottles. After the completion of round trip, he returned with the empties back to the starting point.

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Wikipedia