Study On Milk Run Project And Route Optimization Of Company S

With the development of economic globalization, automobile accessory manufacturers have come into a rapid blossom in China. While the newly grown enterprises have also brought whole automobile industry more competition pressure and forced them to seek new way to enhance their competitive advantages and profit areas. During the automobile production process, the accessory supply chain is considered as an important part by automobile manufacturers. Their lean logistics concept on supply chain such as “JIT supply” or “Zero inventory” requires supplier to deliver parts in small batch and with high frequency, which would cost supplier more in direct delivery and even inventory. Compared with supplier direct delivery mode, Milk Run supply mode is a more optimized option in logistics concept with delivery consolidation on small batches of parts in different places. By this mode, manufacturers can have high utilization ratio and optimized transportation route to reduce delivery cost and improve the company’s key competitive advantages.Herein we would like to share the study on Milk Run supply mode with a real case of company S. The study includes: Milk Run delivery from suppliers with optimized route; improvement on supply management level by 3rd-party logistics involvement; service improvement and cost reduction of 3rd-party logistics supplier by supplier evaluation system and logistics cost benchmark; information system construction for Milk Run mode.