Logistics Management, Milk Run Logistics, Milk Run System, Logistics Systems, Logistics Company

Toyota Logistics Milk Run System

MILK RUN SYSTEM is the external logistics improvement "Method supply of local parts from many suppliers to toyota" as the concept of TPS(Toyota production system) law
1.Cyclic Rotation
2.Short Lead Time
3.High cubic efficiency
4.Flexible to changes

merit are ;
1.Able to high delivery frequently > Low inventory level
2.Short lead time
3.High cubic efficiency
4.Flexible to change logistics route according with volume changing

Role and Responsibility ;
Toyota Logistics Milk Run SystemToyota (User)
1) Parts volume procurement
2) Parts list confirmation
3) Usage per day calculation
4) Kanban ordering
5) To design route diagram
Logistics partner/third party logistics (Transporter)
1) Cross check part list data
2) Truck & driver preparation
3) Driver check sheet print out
4) Control transportation problem by follow Toyota
Supplier (Part maker)
1) Produce parts follow Toyota’s order (with kanban system)
2) Part arranging

When will route change?
1) Production volume (Normally in monthly basis)-Especially during Takt time change, Minor change, Model change,etc.
2) Additional new suppliers
3) Cutting suppliers
4) Overtime happening
5) Abnormal case-More extra truck, Over weight on truck, Traffic way changing,etc.
How to confirm route data?
1) Supplier Meeting --> Cycle time and Pick up time are mainly issue to discuss
2) Letter and call to confirm
    -->Attachment the route data paper as follow
       -Part pick up time confirmation
       -Operation Kaizen

Conclusion merit of TOYOTA MILK RUN SYSTEM ;
1) TO INCREASE DELIVERY FREQUENCY
2) TO REDUCE PARTS UNLOADING LEAD TIME
3) TO MAXIMIZE TRUCK SPACE UTILIZATION
4) TO BALANCE SUPPLIERS’S DELIVERY  TIME
5) TO REDUCE TRANSPORTATION COST

"Toyota Logistics Milk Run System"