Milk Run system is the general name of a logistics procurement method that aims to achieve efficiency by combining the products to be transported in a single vehicle. Milk Run takes its name from the milk vehicles that distribute milk to the houses on a certain route between the streets and collect the milk containers with a certain route. This system emerged to distribute various goods efficiently; It is also used to collect product containers, samples and other necessary objects from linked points.
In general, the reasons why the Milk Run system is widely used are:
- It allows small batches of goods to be transported at once and helps reduce transportation costs. Increases efficiency in route creation.
- It ensures that the line established with the customer or supplier is optimized and synchronized.
- The Milk Run system can provide the necessary product collection processes to improve logistics supply systems.
- By optimizing vehicle loading rate, it provides shortening of the total distance traveled. In this way, it helps to reduce CO2 emissions. It can reach various supplier and manufacturer coordination, improve agility and flexibility, as well as receive feedback from the manufacturer and increase system efficiency.
- With 3PL, it updates logistics strategies, significantly decreases inventory in the process, increases capital flow, reduces investment risks. It also reduces storage costs as it will significantly reduce the stock level.