Optimize your logistics operations with scheduled deliveries and pickups to increase agility and reduce your business costs.
Milk Run is a scripted system that allows one merchandise to be delivered to a point where another will be picked up. Due to this method, deliveries and collections are carried out without the routes crossing each other, so the same driver does the entire process, avoiding the excessive use of the fleet and contributing to the reduction of operating costs.
This system was created by milk cooperatives in England in the 20th century and is still used today by the sector, because it still brings excellent results for the logistics operations of some companies. The method is widely used in the automotive industry and retail.
Retail companies that have distribution centers for their stores opt for Milk Run to enhance some of their purchasing processes – exchanges, return and transfers between stores are practices optimized by this system.
When is Milk Run recommended?
The use of Milk Run is recommended when a company works only with a specific product and with customers who have a shopping routine, so that it is possible to schedule delivery and collection times.
Unlike other methods used in the logistics sector, the choice of Milk Run can compromise the entire process, for the carrier and the customer, when there are delays in the availability of inputs or in the manufacture of products, which can also promote the loss of credibility between suppliers and customers.
A company that knows how to use this system correctly will have better cash flow, stock replenished more often, dispensing with large investments in staff and infrastructure and reduces material waste.
The main objective of choosing the Milk Run system is to reduce costs through route routing, saving scales and reducing freight expenses.
The main advantages of the milk run are: agility in the process of loading and unloading the merchandise, ease in routing and meeting the schedule with the customer, standardization of packaging, reduction of freight cost, low failure rate and reduction of inventory.
Your company thinks about investing in the milk run, but still have doubts if the method is advantageous?
Please get in touch with our team. Veloce can help your company find the best logistics solution.