Milk Run
Definition
A milk run is a scheduled route in which one vehicle makes multiple pickups or deliveries in a fixed sequence, such as collecting parts from several suppliers on a loop and delivering them to one plant. The name comes from historical dairy delivery rounds.
In Practice
Instead of each supplier shipping independently, a milk run sends one truck on a repeating loop, picking up smaller quantities from several nearby suppliers on a fixed timetable. The same concept works outbound, with one vehicle delivering to multiple customers on a set route. Volumes per stop are smaller but frequency is higher, and the truck runs well utilized.
Milk runs are a staple of lean manufacturing logistics because they enable frequent, small, predictable deliveries, which reduces inventory at the plant without the freight penalty of many separate LTL shipments. They also make receiving predictable: the same truck at the same dock at the same time each day. The design work is up front, sequencing stops, fixing pickup windows, and standardizing packaging so loading is fast.
A classic example is an auto plant running a daily loop through eight component suppliers within 150 kilometers, collecting exactly one day's usage from each.
Related Calculators
Related Terms
Route optimization is the process of determining the most efficient sequence of stops and paths for delivery vehicles, minimizing distance, time, or cost while respecting constraints like time windows, vehicle capacity, and driver hours.
Freight ConsolidationFreight consolidation combines multiple smaller shipments into one larger load to reduce transportation cost per unit. Consolidated freight is later separated and delivered to individual destinations.
Less Than Truckload (LTL)Less than truckload shipping combines freight from multiple shippers in one trailer, with each paying only for the space and weight they use. It suits shipments of roughly one to ten pallets that are too big for parcel but too small for a full truck.
Transit TimeTransit time is the elapsed time between a shipment leaving its origin and arriving at its destination. It is a core component of total lead time and a key input to inventory and delivery planning.