Reliability and efficiency are constant goals in the rapidly changing fields of supply chain management and logistics. The milk run is one technique that has endured and is still changing material movement. The milk run concept, which has its roots in the dairy industry’s method of gathering milk from several farms and transporting it to a processing facility, has found a new home in lean logistics. It’s a mindset that combines sustainability, reliability, and efficiency rather than just a procedure.
True North Lean (www.truenorthlean.org), believes in using the power of lean principles to drive operational excellence, and the milk run is a prime example of how lean logistics can revolutionize supply chains.
Key Nodes for a Milk Run: Ensuring a Smooth Flow
Imagine a world where every material, every part, and every component arrives precisely when needed, in the exact quantity required. This is the world of the milk run, a method designed to connect material movement between multiple sources and a storage location nearer to the point of use or processing. It’s about creating a seamless flow of goods, reducing inventory, and improving customer service by increasing delivery frequency.
“The milk run is more than just a logistics strategy; it’s the heartbeat of lean supply chains, synchronizing the pulse of material movement to the rhythm of production demand.”
The milk run, as practiced in lean logistics, is a route that connects several suppliers to a customer site. Instead of each supplier sending a truck sporadically, a shared truck stops at multiple suppliers daily, picking up loads for the customer. This not only reduces transportation costs but also ensures a steady and predictable flow of materials.
Increasing Delivery Frequency and Reliability
One of the most significant advantages of the milk run is its high delivery frequency. Just like milk, which has a shelf life and needs to be picked up regularly, the purpose of the milk run is to reduce inventory and enhance customer service by increasing the frequency of deliveries.
Typically, this means one to four deliveries per shift. In a mature, high-volume assembly plant, a milk run route might include four to six suppliers, with each cycle lasting about two hours for suppliers located near the plant. This allows for multiple delivery cycles per shift, ensuring that materials are always available when needed.
“Reliability in delivery is the cornerstone of a lean supply chain, and the milk run is the architect that builds this foundation, brick by brick, delivery by delivery.”
The predictability of replenishment lead times, the reduction in inventory, and the improved visibility of inventory through frequent communication with suppliers are just a few of the benefits of the milk run. Moreover, receiving operations benefit from the consolidation of deliveries, leading to more efficient and streamlined processes.
Types of Milk Runs: Adapting to Distance and Complexity
The beauty of the milk run lies in its adaptability. Whether suppliers are located close to the customer plant or spread across a vast region, the milk run can be tailored to meet the specific needs of the supply chain.
Local Milk Runs: When suppliers are within about 200 miles of the customer plant, the local milk run is an ideal solution. This type of milk run works well for internal logistics within large factories or sites with multiple buildings supplying one internal customer.
Remote Milk Runs: When suppliers are spread across a large countryside or even globally, the remote milk run comes into play. By using a series of connected hubs, cross docks, and a relay system of drivers swapping trailers, the local milk run cadence is maintained while ensuring that the extended supply chain moves steadily and in sync.
Semi-Remote Milk Runs: For suppliers that fall between local and remote, the semi-remote milk run offers a balanced approach, combining elements of both local and remote strategies to create a seamless flow of materials.
“Adaptability is the secret sauce of successful supply chains, and the milk run is the recipe that brings it all together, no matter the distance.”
Setting Up the Milk Run Pattern: From Concept to Reality
While the concept of the milk run is simple, setting up a milk run system for complex industrial goods requires careful planning and coordination. The route may involve products from different companies, which necessitates agreements about timing, frequency, container standardization, inventory levels, and cost-sharing.
At the informational level, setting up a milk run system involves creating a timetable that serves as the basis for standard work. This requires mapping the material and information flow between suppliers and customers and defining the main suppliers or acting hubs or consolidation centers.
At the physical level, it’s often necessary to modify containers for material presentation and transportation equipment, such as dedicated side-loading trucks for smoother transfer of goods. Competence with the use of supermarkets or similar storage infrastructure is a prerequisite.
At the task or method level, it’s crucial to observe and time each step of the process, identifying common and unique tasks at each stop. The timetable may serve as the macro-level standard work for goods movement, but drivers and operators also need stop-level standard work. This often involves tasks such as part number and quantity verification, handling kanban cards, conducting quick quality checks, and flagging any issues or discrepancies.
The Lean Approach
In the world of lean logistics, it’s essential to start small and scale up methodically. Depending on volumes, distances, and the maturity and stability of the supply chain, it’s typical to begin with two or even just one milk run cycle, delivering every four to eight hours. This allows the team to move from theory to practice, working out any kinks before making a larger commitment.
It can be tempting to add just one more supplier or one that’s slightly outside the route to save costs. However, this can be a slippery slope, disrupting standard work, causing delays, and leading to shortages if not handled carefully. It’s best to integrate these cases into the milk run by having parts delivered to one of the suppliers or a third-party logistics site on the route.
“The journey of a thousand miles begins with a single step, and in lean logistics, that first step is the milk run, setting the stage for continuous improvement and operational excellence.”
Avoiding Common Pitfalls
As with any lean system, there are potential pitfalls to avoid when implementing a milk run. Standardization and dedication to the route are key. Sometimes, companies use the term “milk run” for ad hoc, quantity-based rather than time-based deliveries, but this should generally be avoided.
A reliable timetable is crucial for predictability and cost reduction. Milk runs may not be suitable when transportation conditions are unpredictable across the route due to weather, bridge closings, seasonal or event-based traffic spikes, etc. Careful route planning, with alternative routes and a thorough understanding of how conditions vary, can help mitigate these risks.
When a product is only required sporadically from a specific supplier, it’s often simpler to exclude these items from the milk run system, at least initially.
The Importance of Planning and Coordination
While the expression “milk run” might suggest a routine, uneventful journey or simple task, the reality is quite different. Setting up and running a milk run system in modern supply chains requires significant upfront planning and coordination. However, by standardizing the timing, sequence, and quantity of items to deliver, the flow of goods becomes simpler and more reliable.
Milk run is not just a logistics strategy but a path to continuous improvement and operational excellence. By implementing lean principles and embracing the milk run concept, supply chains can achieve new levels of efficiency, reliability, and sustainability.
The milk run is more than just a method for moving materials; it’s a philosophy that aligns with the core values of lean logistics. It’s about creating a predictable, reliable, and efficient flow of goods that supports the overall goals of the supply chain. With careful planning, coordination, and a commitment to continuous improvement, the milk run can transform supply chains and set the stage for long-term success.
“True North Lean is your partner in this journey, helping you navigate the complexities of supply chain management and achieve operational excellence through lean principles and innovative solutions like the milk run.”
For more insights and resources on lean logistics and supply chain management, visit True North Lean at www.truenorthlean.org. Let’s take the first step together towards a leaner, more efficient future.
References:
- True North Lean – For more information on lean principles and supply chain management, visit www.truenorthlean.org.
- Lean Logistics and Supply Chain Management – A comprehensive guide to lean logistics and the role of milk runs in creating efficient supply chains. Available at Lean Enterprise Institute.
- The Milk Run in Modern Supply Chains – An in-depth analysis of milk runs and their applications in different industries. Published by the Journal of Supply Chain Management.
- Kanban and Milk Run Systems: Enhancing Inventory Management – This paper explores the integration of Kanban systems with milk runs to optimize inventory management. Published in the International Journal of Production Research.
- Milk Runs: A Lean Manufacturing Case Study – A case study on implementing milk runs in an automotive assembly plant, highlighting challenges and benefits. Available through Elsevier publications.
- Logistics & Supply Chain Management by Martin Christopher – This book provides insights into various logistics strategies, including milk runs, and their impact on supply chain efficiency.
Insightful analysis of the Milk Run concept by True North Lean—enhancing supply chain efficiency through strategic, circular logistics.