There are several factors that lead to an efficient milk run system in logistics which generally include the following :
1. Cyclic rotation- a milk run system has to have ongoing cycles or rotations of products and goods transportation. It is very important for the transportation of goods and products to be flexible.
2. Short-lead time- a milk run system has to make sure all parts of products are made on time, are made accurately, and are all well-furnished as instructed or as customers order.
3. High loading efficiency- It is critical and needed for all milk run systems to have high loading efficiency. Transportation systems must be strong enough to carry loads of products as well as have high efficiency in travelling place to place without damaging products and goods loaded.
4. Flexibility- a milk run system needs flexibility. The ability to change, to adapt, and to move place to place is indeed a must in logistics management. Flexibility in transportation and in product distribution will lead to better adaptations to situations in business. Milk run system also collects information of suppliers including essential information and data like dates, costs, amount of purchase, locations of product, and others. Information and data collected will then be transferred to producers or corporations to go on with their further productions. Also, managers will have to make schedules and plans to receive orders of products.
Milk Run System for a Business’s Real Success
To lead a business to success, a lot of work will be required, real lot. Employees, workers, and individuals in a business must all cooperate with each other and do work accurately and correctly as much as possible. The following are the important factors that will lead a business to success through a milk run system.
3. Technology and equipments- Latest technology in a milk run system will make orders, loads, packaging, and managing easier. With the help of internet and computer-based software, information input and output will enhance accuracy and speed of production. The intranet system and the EDI or Electronic Data Interchange will be used to exchange information and data between suppliers and raw material producers.
With a milk run system, a business can reduce its inventory costs and stock for big producers and suppliers. Expenses and costs of stocks and inventory will be minimized; therefore, all benefits will go to buyers and producers. Materials and equipments will be transported from place to place accurately and timely.