SERVICES
Our Latest Blogs
LCL Consolidation – Global Logistics Solutions for Fashion Apparel Retailer in UK
Case Study: 3PL Logistics Solution for a Leading Power Back-up Manufacturer
Case Study: 3PL Solution for a Leading Apparel & Fashion Retailer
The Impact of Digitization In 3 PL Space In the Business Arena
Customer Focused Supply Chain ~ An Emerging Trend!
Logistics Cost as 13% of GDP in India – Meaning, Interpretation and Basis
Share On Social
WHAT IS MILK RUN LOGISTICS
A milk run is an inbound delivery to a warehouse or distribution facility in logistics. Internal or external supply networks may be involved in these deliveries. Internal activities might also include milk runs. They don’t always require the use of delivery trucks. Consider the case of heavy equipment manufacturing plant. Various plant components create multiple machine parts, and another group does the assembly. Someone from each fabrication department might deliver finished pieces to the assembly area. However, sending a driver to each sector to load and transfer all of the details to the assembly area is probably more efficient. In this scenario, one driver replaces several, allowing each department’s personnel to concentrate on fabrication.
THE IDEA BEHIND THE MILK RUN CONCEPT
The central concept and name are based on the traditional American milkman, who delivered milk to the homes. The quantity of milk was determined by the number of empties on hand, so there was always enough milk. The empties were picked up and sent to the headquarters right away.
TYPICAL MILK RUN STEPS
- Start from the central point
- Loading at each supplier point
- Unloading (if any) at the supplier point
- Finally, unloading at the central point.
WHY IS MILK RUN BENEFICIAL
A milk run is a more effective method of handling logistics. They do, however, need preparation. If the route includes items from many firms, a cost-sharing agreement and other components of the cooperative distribution arrangement are required. By merging operation expenses and resources, this delivery strategy can save time and money for everyone after the organization has resolved these challenges.
Milk runs are also beneficial to receiving operations. Instead of processing a dozen supplies from several farms, the mill may get a complete wheat delivery from only one truck. Instead of tracking down component deliveries from several fabrication departments, the assembly operations in the internal example above have to keep track of one. Advantages for the Carrier
The benefits of milk run logistics are immediately apparent after deployment. The following are the most important:
- Reduced inactive loads
- Decreased malfunction rates
- Flexibility and agility
- Use of space for load solidification
Disadvantages for the Carrier
To avoid future conflicts with suppliers and consumers, it is necessary to analyze several concerns before adopting the system. The need for synchronization between suppliers and client needs is one of them.
- Loss of credibility with producers is a possibility.
- Commitment to all phases of the milk flow,
- Eliminating delays in input availability and product manufacturing.
HOW DOES MILK RUN APPLY TO MATERIAL HANDLING?
The Milk Run method has become quite popular in many lean manufacturing organisations. Remember that the poor mindset attempts to enhance every aspect of the manufacturing process, including material transport and handling. The Milk Run method allows for more frequent deliveries of materials and supplies to various assembly sites or portions of your company that require replenishing. Overstocking and the need to manually request extra products are typically reduced due to this.
It also keeps production processes flowing over the shop floor, drastically minimising downtime. As a result, it’s commonly utilised to enhance supply chains.
Operators and material handlers follow predetermined standard delivery routes in the most common configuration across the plant. These supplies are most typically provided to regions of the facility that always need re-supply, which are usually found on the assembly line. These supply routes are often scheduled out during the shift to guarantee that the assemblers can continue to assemble following production schedules.
The operator will pick up their goods from a central warehouse or convenience store and then deliver or drop off the items to the assemblers at various assembly sites. When carried out by a tugger train system, these deliveries are most effective and efficient, which leaves multiple carts, containers, and supplies at several assembly stations.
When creating a milk run route within your business, the most typical method is using a tugger train system, as employing a forklift to complete these trips is risky and inefficient. This is owing to tugger train systems’ adaptability. The device can handle a variety of cart layouts and is designed to negotiate corridors and routes that forklifts can’t. Another reason tugger trains are ideal for executing the Milk Run approach is their safety record.
There will be additional material handlers back at the storage area/supermarket prepping the following milk-run route in a broader setup so the tugger driver may start his following delivery route right away. In lesser operations, the same material handler/driver completes this task. As a result, the strategy for planning the following delivery route is typically determined by the size and practices of a plant or warehouse.
CHALLENGES OF THE MILK RUN CONCEPT
Planning takes a long period since transit quantities, delivery time windows, travel hours, and other factors must be considered.
Challenges While Setting Up A Milk Run​
- A steady demand is required for the commodities in the process
- Weather conditions and traffic congestion might be problematic
- Only a broader radius is economically viable
- It is necessary to locate dependable providers
The design and implementation of Milk Run routes and the scheduling of the intervals are the most challenging aspects of the first setup. This is because it is the factor that determines the method’s practicality.
It may take a lot of trial and error and time to get it perfect. One of the essential aspects of setting up your milk run routes is the structure of your facility/factory. The route’s length and distance from the storage area to the various assembly sites factor in the route’s efficacy and efficiency.
Also, consider how much demand your assembly stations would generate and how frequently they need to be re-supplied. Because the manufacturing schedule is often unclear and subject to change, this can be challenging to manage and implement. As a result, the final Milk Run strategy must account for these elements and the impact of real-time events.
WHY SHOULD YOU CHOOSE GENEX
At Genex Logistics, we personalise our solutions to your business demands while ensuring optimal capacity utilisation at comparatively low prices. We manage transportation and pick-ups from several vendors at various locations and then combine them at our warehouses for secure storage. We optimise processes to enhance profitability by reducing and eliminating inefficiencies in company supply chains.
Reach out for milk-run pick-up services and end-to-end logistics solutions that help save time and cost for your business. Contact us if you want e-commerce logistics marked by speed, precision, and efficiency.