•A milk run is a route in which a truck either delivers product from a single to multiple retailers or goes from multiple suppliers to a single retailer.
•In other words, a supplier delivers directly to multiple retail stores on a truck or a truck picks up deliveries for many suppliers of the same retail store.
Benefits of Milk Runs
•Milk runs help to reduce the the transportation costs by consolidating shipments to multiple stores on a single truck .
•Milk runs allow deliveries to multiple stores to be consolidated on a single truck, resulting in a better utilization of the truck and somewhat lower costs.
•The use of milk run is helpful if very frequent, small deliveries are needed on a regular basis and either a set of suppliers or a set of retailers is in geographic proximity.
•Helps to reduce the amount of inventory to be kept as a safety stock in the warehouses.
•High degree of coordination and synchronization required among the members of supply chain.