Milkrun – definition and examples

A milk run is a logistics concept that is also known as a tour. Its aim is to optimize the logistics process in the procurement, distribution and production of goods. The aim is to avoid unnecessary delivery routes. A company defines a route based on certain factors. The stations along the route are always approached at fixed times. Goods are then received and/or delivered at each station. This reduces the number of transports.

The Milkrun logistics concept is based on the traditional milk suppliers in the USA and England. They drove to the households on a fixed route. They placed the fresh milk bottles in front of the door and took the empty milk bottles with them.

A milk run can take place between several companies (inter-company) or in just one company (intra-company). In the inter-company milk run system, a company commissions a transport company. This then travels to various suppliers within a specified period of time. It picks up goods there and brings them back to the starting point of the tour. It is also possible for the company to take goods or materials from the point of departure and deliver them to the customer. It is therefore a cycle that starts all over again. This reduces the storage time. In addition, the truck is always filled to the maximum and has fewer empty runs.

The Milkrun system can also be used internally. Here, frequently required goods are brought to the relevant work location at regular intervals. An example of this would be screws at a car manufacturer. At the same time, empty containers and packaging material are taken away and disposed of. The continuous supply and disposal saves time and reduces transportation routes.