Transportation strategy should not drive how and when product is delivered. Rather, customer expectations need to be fully understood, and transportation strategies must be developed to meet these expectations with optimal inventory levels. Transportation strategy and tactics must support Lean inventory strategies. This will undoubtedly change the transportation methods of the organization. For example, a focus on truckload movements and transportation load building based on economies of scale may not support the customer experience. Products are generally not consumed by the truckload or even a skid at a time. Rather, small quantities are often preferred to meet consumption needs. Lean transportation means proactively reviewing transportation modes, matching mode to inventory strategies and customer expectations. Less than truckload (LTL) shipments are being replaced by frequent ground package shipments or multiple stop milk runs to gain control, visibility and delivery stability. Past paradigms of transportation “givens” must be rethought and reviewed to ensure that inventory and customer requirements are driving transportation methods.
Milk Run is one of the advanced delivery concepts that can improve your transportation management system. Milk Run Delivery means a routing of a supply or delivery vehicle to make multiple pickups or drop-offs at different locations on a regularly scheduled basis.