Milk Run Operations (Group 5)

Shazwan Hadi bin Abdul Ghani (57212120401)

Adam Iqmal bin Rosdin (57212221043)
Ain Nur Husna binti Hafizudin (57212221025)
Content
01 Introduction

02 Definition

03 Concepts of Milk Run Operations

04 Purpose of Milk Run Operations

05 Milk Run Logistic Operations

06 Advantages & Disadvantages Milk Run Operations

07 Case Study

08 Future Improvement

09 Conclusion
 INTRODUCTION

In the early 20th century, milk distributors developed a method to save on

transporting goods from farms to the filling companies. In this feature, instead of
the producer taking his product, which increased the price due to freight, the
cooperatives collected the demand, reducing the cost. To speed up the work, a
wagon passed through all the producers, collecting standardized milk cans. That
way, they could exchange the empty cans for the floods with any manufacturer
that was in the path of the planned route.
DEFINITION
A Milk Run is a delivery
method used to transport
mixed loads from various
suppliers to one customer.
Instead of each supplier
sending a truck every week
to meet the needs of one
customer, one truck (or
vehicle) visits the suppliers to
pick up the loads for that
customer
Milk Run Operations
 Concept

• The material management of milk run is a 

supplier concept in which a customer commissions one
or more transport companies to control different
suppliers or customers one after the other in the form
of a transport cycle.
• In this cycle, goods or empties can be delivered and
received at the same time without consolidating them
centrally.
Milk Run Concept
 Advantages of Milk
Run Concept

Reduced transport times,

1
Fewer transshipment
Processes and thus lower
Transport costs

Just-in-time delivery
2
possible

Less capital tied up due to smaller

3
inventories
 Challenges of Milk Run Concepts

• The goods in the process require a

constant demand

• Very time-consuming planning,

since transport volumes, delivery
time windows, driving times etc.
must be taken into account
• Weather conditions and traffic
obstruction can have a negative
impact

• Reliable suppliers must be found

• Only economically usable from a
larger radius
 Objectives
Milk-run system was designed to
collect goods from two or more
suppliers and send to the customer.
At the same time, truck must be
optimized in the capacity to
increase to the amount of sufficient
cargo for fully-loaded distribution.
The time and number of pickup
schedule of milk-run determine the
performance.
The milk-run approach, which is one
of the most efficient and popular
methods of improving truck-load
ratios, refers to a mean of
transportation in which a single
truck cycle around multiple
suppliers to collect or deliver
freight.
 Milk Run Logistic Operations
Operation Plan and Management
The operation manager assigns a driver for each route, and
registers the route information in a geographic information
system

Cargo collection
The parts supplier loads the parts based on a stowage plan.

Unloading operations at the TMT plant

The driver unload the goods to the receiving and checking area
using a forklift, and loads empty containers instead.

Transport responsibility
It is natural to think that the responsibility belongs to the parts
supplier before loading the goods onto the truck, and the
responsibility shifts to TMT once they are loaded onto the truck

Flow of parts in the plant and synchronization mechanism

Parts collected by Milk-Run Logistics are carried into the host
terminal.
Decreased inactive loads Need for synchrony
between suppliers and
D customer demands.
I
A
S
D
A
V
D
A Advantages V
N &
Reduction in the rate of A Possibility of loss of
T Disadvantages
malfunctions N credibility with procedures
A
T
G
A
E
G
S
E
S
Flexibility and agility. Commitment to all stages of
milk run, avoiding delays in
the availability of inputs and
in the manufacture of
products.
Case Studies
Future Improvements
Conclusion
• The use of milk run operation will
contribute to reach the decided
targets of the project with shorter
lead times than today, It can
increased customer demand and
optimization of the supply chain.
• If the company introduces the
concept of milk run it will generate a
more standardized delivery process
and reduce the cost of transportation.
• The milk run concept will also reduce
the impact on the environment
through fully load trucks and shorter
lead times through the supply chain
aiming for better fulfillment.
Thank You