Milk-Run logistics is a generic name of a logistics procurement method that uses routing to consolidate goods by
the buyer. It is a method of goods collection in which the user (i.e. car assembly manufacturer) dispatches one truck
at a specified time period to visit various suppliers (i.e. parts supplier) following a predefined route to collect parts
or products, and deliver them to the factory. In general, the reasons why Milk-Run logistics has been widely
employed are: 1) clarification of distribution cost included in the prices of parts previously in the traditional business
practices, 2) reduction in transportation costs due to consolidated transportation offsetting even the use of small lot
transport, 3) improvement of the assembly manufacturer’s production line and greater accuracy of JIT goods
delivery due to synchronization. Milk-Run logistics can provide consolidated collection of goods necessary to
improve logistics procurement systems.