Milk-run is a technique used to manage internal and external logistics by replenishing consumed materials through deliveries at regular intervals, following standardised routes.
The origin of the technique dates back to the method used by milkmen in the early 20th century: on daily routes, empty bottles were collected while full ones were delivered – replacing those emptied since the previous round. Once the round was complete, the milkman would return to the point of production to refill and prepare for the next delivery and collection round in the following days.
By establishing frequent and timely delivery intervals – typical of the milk run approach – stock levels are kept low. Thanks to trip optimisation, which combines collections and deliveries, supply flows are rationalised. This reduces the number of vehicles on the road and the distances travelled, resulting in lower transportation costs.
In addition, the standardisation of logistics flows helps reduce the resources required for transportation planning, thereby improving the overall efficiency of the logistics system.
To design a milk run-based procurement system, it is essential to define and formalise the operational flow, information flow, and workflow in detail.
Designing the operational flow involves defining the tasks that constitute the procurement process and simultaneously formalising the key elements of the distribution network using a 4M+E perspective.
Next, the information flow is defined in detail, ensuring it includes all the standardised data necessary to support the operational flow. This includes defining the information to be displayed on containers, the location of materials within the supermarket area, the information control points along the flow, and the data needed for materials management (PFEP).
The third and final step is to design and size the workflow, which encompasses all tasks performed by the transforming resources (people and machines) that enable the operational and information flows to function effectively. This includes defining in detail: the required equipment (e.g. carts, trains, forklifts), the number and saturation index of resources, and the organization of work – covering the reset sequence and the management of material setups.
You can find practical examples of this technique in our Case Histories!