Glossary

Milk Run

Definition

A milk run is a logistics term used to describe a method of transportation and delivery where a single vehicle collects and delivers goods from multiple suppliers to multiple customers on a single route. This approach is named after the traditional milk delivery process, where a milkman would make multiple stops along a route to deliver milk to households. Milk runs are typically used to optimize transportation efficiency, reduce costs, and minimize the environmental impact associated with transporting goods in the supply chain.

— sennder Team

FAQ

Milk runs offer several benefits in logistics, such as: - **Cost savings**: By consolidating shipments from multiple suppliers and customers, companies can reduce transportation costs associated with multiple individual trips. - **Improved efficiency**: Milk runs help optimize vehicle capacity utilization, reducing empty or partially-loaded trips and ensuring better fuel efficiency. - **Reduced environmental impact**: Consolidated shipments result in fewer vehicle movements, leading to reduced fuel consumption and lower carbon emissions. - **Enhanced supply chain collaboration**: Milk runs encourage better communication and coordination between suppliers and customers, fostering a collaborative supply chain environment.
Milk runs are commonly used in various industries, including automotive, manufacturing, retail, and food and beverage. They are particularly beneficial for industries with complex supply chains or those that require frequent transportation of small quantities of goods between suppliers and customers.
Milk run routes are determined based on factors such as the location of suppliers and customers, transportation requirements, and delivery schedules. Companies may use specialized software or route optimization tools to plan and optimize milk run routes, considering factors like distance, travel time, and vehicle capacity. The goal is to create an efficient route that minimizes transportation costs and maximizes vehicle utilization while meeting the delivery requirements of all parties involved.
Example or usage in road freight logistics

A manufacturing company uses a milk run to collect components from multiple suppliers and deliver them to its production facility. The company's truck stops at each supplier's location, picks up the required components, and continues along the route until all pickups are completed. The truck then delivers the components to the production facility in a single trip, minimizing transportation costs and ensuring an efficient use of the vehicle's capacity.

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