The milk run network can be solved by a classical vehicle routine problem (VRP) involving pickup and/or
delivery requests, as it will be discussed later. On the other hand, a crossdocking transportation network can
share vehicle sources and focuses more on the coordination of the service between suppliers and customers. It
is implemented so that vehicles carry products from different suppliers, and products are then moved to other
vehicles, which are dedicated to serving individual customers directly. However, if more products are shipped
from suppliers than are needed by customers, a distribution centre is needed to maintain the inventory. A suc-
cessful example of this type of distribution is Wal-Mart, which allows suppliers’ (or retail stores’) delivery
vehicles to exchange goods directly with the vehicles of other retail stores in a distribution centre, and so main-
tains a very low inventory. A crossdocking network can cut the level of inventory greatly, but requires a high
degree of coordination among suppliers, retailers and vehicles. The third consolidation network, the tailored
network, combines both full truckload and LTL by allowing high-volume orders to be shipped from suppliers
to customers directly, and low-volume orders to be consolidated through the distribution centre (DC).