Milk run
Encyclopedia
In logistics
, a milk run is a round trip which facilitates both distribution and collection.
The terms are defined by the customer or by the service provider
s. 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 percent can be achieved.
On the round trips are either goods collected from several supplier
s and transported to one customer, or goods collected from one supplier an transported to to several customers. In contrast to the groupage traffic, here is no handling, but only 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 the literature, in the higher utilization of truck
s and the resulting reduction of transport costs by up to 30 percent. 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
.
In literature completely ignored is the less 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-Concept are the following points:
culture, with the distribution of milk bottle
s 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.
Another source is located in agriculture
of the 20th Century. Until the 90s, in smaller communes, there were small collection points for milk
. Since most farms had very little dairy
, it was not economical for dairies to drive every single operation. Thus, the milk was transported by farmers to collection points and collected there. The milk truck then drove to the collection points ordinarily every two days at a predetermined number of collection points in a fixed order and transported the milk to the dairy.
In the context of logistics
in 1995, first mentioned by Meusel, that by identifying potential circular tours, the utilization of trucks could be increased and logistics costs could be reduced.
points. There, the cargo will be consolidated and transported to the customer
. This type of transport is divided into 2 cycles:
In this concept, the average utilization of transport
amounts to 60-70 percent. The resulting costs and CO² emissions from empty tours and extra tours, as although bad utilized transport, are from an environmental and economic point a disadvantage.
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
, a milk run is a round trip which facilitates both distribution and collection.
The terms are defined by the customer or by the service provider
Service provider
A service provider is an entity that provides services to other entities. Usually, this refers to a business that provides subscription or web service to other businesses or individuals. Examples of these services include Internet access, Mobile phone operators, and web application hosting...
s. Here, the exact number of suppliers, each of which defines the available volume
Volume
Volume is the quantity of three-dimensional space enclosed by some closed boundary, for example, the space that a substance or shape occupies or contains....
and weight
Weight
In science and engineering, the weight of an object is the force on the object due to gravity. Its magnitude , often denoted by an italic letter W, is the product of the mass m of the object and the magnitude of the local gravitational acceleration g; thus:...
, 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 percent can be achieved.
On the round trips are either goods collected from several supplier
Supplier
Supplier may refer to:*Manufacturer, uses tools and labor to make things for sale*Processor , converts a product from one form to another*Packager , encloses products for distribution, storage, sale, and use...
s and transported to one customer, or goods collected from one supplier an transported to to several customers. In contrast to the groupage traffic, here is no handling, but only to transport the goods.
Something more specialist, the Milk-run is described as a concept that is a sequential collection of goods
Goods
Goods may refer to;*Good , physical product*Personal property, legal personal chattels...
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:
- Fixation of weight and volume of suppliers in a particular region.
- Selection of potential Milk-Run-Suppliers based on the maximum amount of charge, delivery frequency as although volume and weight limits.
- Selection of Milk-Run-Suppliers because of the conditions and the Milk-Run potential.
- Definition of Milk-Run-Parameters to the weight and volume limits, time slots, delivery frequency and maximum number of Milk-Run-Suppliers.
- Development and evaluation of Milk-Run-Alternatives.
- Specification of the Milk-Runs with respect to the fourth point under these parameters, plus the necessary contingency plans.
- Implementation of the Milk-Runs: Definition of a Milk-Run-Schedule, conduct supplier workshops, testing and Milk-Run-Controlling.
The main benefit of Milk Runs is, according to common opinion in the literature, in the higher utilization of truck
Truck
A truck or lorry is a motor vehicle designed to transport cargo. Trucks vary greatly in size, power, and configuration, with the smallest being mechanically similar to an automobile...
s and the resulting reduction of transport costs by up to 30 percent. 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
Recycling
Recycling is processing used materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution and water pollution by reducing the need for "conventional" waste disposal, and lower greenhouse...
.
In literature completely ignored is the less pollution
Pollution
Pollution is the introduction of contaminants into a natural environment that causes instability, disorder, harm or discomfort to the ecosystem i.e. physical systems or living organisms. Pollution can take the form of chemical substances or energy, such as noise, heat or light...
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-Concept are the following points:
- Not all suppliers are able to implement a Milk run.
- The increasing dependence on road conditions.
- In the case of poor planning, the number of extra trips can increase, and lead to additional costs.
History
The phrase "milk run" originates in AmericanUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
culture, with the distribution of milk bottle
Milk bottle
Milk bottles are bottles used for milk. They may be reusable glass bottles used mainly for doorstep delivery of fresh milk by milkmen. Customers are expected to rinse the empty bottles and leave on the doorstep for collection...
s by the milkman
Milkman
A milkman is a person, traditionally male, who delivers milk in milk bottles or cartons. Milk deliveries frequently occur in the morning and it is not uncommon for milkmen to deliver products other than milk such as eggs, cream, cheese, butter, yogurt or soft drinks...
. 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.
Another source is located in agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
of the 20th Century. Until the 90s, in smaller communes, there were small collection points for milk
Milk
Milk is a white liquid produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to the baby and can reduce the risk of many...
. Since most farms had very little dairy
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...
, it was not economical for dairies to drive every single operation. Thus, the milk was transported by farmers to collection points and collected there. The milk truck then drove to the collection points ordinarily every two days at a predetermined number of collection points in a fixed order and transported the milk to the dairy.
In the context of logistics
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
in 1995, first mentioned by Meusel, that by identifying potential circular tours, the utilization of trucks could be increased and logistics costs could be reduced.
Differentiation from groupage traffic
The currently dominant in practice distribution concept is the groupage traffic. In contrast to the round trip, is at groupage traffic cargo collected from a logistics company at the supplier and transported to the transshipmentTransshipment
Transshipment or Transhipment is the shipment of goods or containers to an intermediate destination, and then from there to yet another destination....
points. There, the cargo will be consolidated and transported to the customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
. This type of transport is divided into 2 cycles:
- Pre-Run: From the suppliers to the transshipment points.
- Main-Run: Transportation of consolidated goods from the transshipment points to the customer.
In this concept, the average utilization of transport
Transport
Transport or transportation is the movement of people, cattle, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations...
amounts to 60-70 percent. The resulting costs and CO² emissions from empty tours and extra tours, as although bad utilized transport, are from an environmental and economic point a disadvantage.