Milkrun

The Milkrun is the preset intralogistics concept to bring raw material, semi finished and finished goods to the place they belong at the time they are needed. The Mikrun is implemented based on existing consumption values, an internal supply cycle is defined in which deliveries on fixed routes are installed with specific times.

Based on these current consumption values, a logistic supply cycle is defined wherein raw material, semi and finished goods are delivered and picked up by a fixed route at a specific time. With this you will also optimize your intralogistics concept in general taking on action for a Milkrun concept.

So what is the idea behind the Milkrun concept.

The term Milkrun comes from the traditional milkman that was supplying milk to homes on a fixed route in a specific time. The milk delivery was based on the consumption of the households, by this only the amount of milk needed was delivered. Empty bottles have been picked up at the same time and brought back to the distribution center. So quite simple full bottle(s) delivered, empty bottle(s) picked up.

The cross company Milkrun
Nowadays the material management got a little bit more complex. Speaking in the external way of logistics a Milkrun is a supplier concept where customers ask for one or more shipping companies to manage different suppliers or customers on after the other in the form of a shipping cycle. In this way, goods and empty containers can be delivered and received at the same time without the need of centralization. The main goal is to have as less as possible empty trucks and at the same time being under full control of external material flow. Tours and deadlines are the guard rails on these cycles, reducing storage space is the nice to have side effect.

The benefits of the Milkrun concept

• With installing a Milkrun you will be able to reduce shipping times, processing processes and therefore handling costs.

• Just in Time and Just in Sequence deliveries are possible

• Your planning is more structured as you will have fixed time frames

• Less capital needed due to decreasing inventory/stock/WIP

• You can integrate waste and empty container management

• Increase of sustainability due to ecologically smarter transportation routes

Of course there are also some challenges with the Milkrun concept

• Time consuming planning as quantity, duration, replenishment time, etc. needs to be considered

• Processes and products need constant supply

• Outbound Milkruns can be delayed by traffic or weather conditions

• Economically relevant for larger business or higher demands of goods

• Reliable supplier for products and transport needed

One last note for the internal Milkrun

Inbound the concept can be used in both ways, intralogistics and manufacturing. E.g. certain raw materials or semi-finished goods can be delivered on a regular basis to predefined workstations where the consumption can simply calculated. And on the fixed route the Mizusumashi can collect empty container and waste from production. This reduces internal ways of operators and guarantees a continuous supply of workstations. The next level would be to interlink all workstations or cells with your internal supply cycles to create an intralogistics flow, reducing the manual replenishment work. To find out what the Mizusumashi is just go here. In short: he/she is the guy who supllies goods on the shop floor in a structured process.