Success Stories
Summary
Optimizing Transportation Costs with the Milk Run Concept
Details
For one of our esteemed customers, we have found improvement opportunity in logistics. On this route trucks were returning empty after delivering materials between plants. For the same route in reverse way, multiple suppliers were using separate transport with expendable packaging, increasing costs and generating waste. Current Challenge: The return trips are not utilized effectively, as they carry only empty bins. This results in unnecessary transportation costs and waste, as the return journey does not contribute to material transport. Through our Data Analytics tool, we gathered data, analysed the patterns, and conducted thorough analysis, which led us to a practical and efficient solution: 💡 Solution: Implement the Milk Run concept to turn this challenge into an opportunity! Key actions: 1)Utilize empty trucks on return trips by coordinating pickups from suppliers. 2)Maximize load capacity by organizing supplier pickups efficiently during the return journey. 3)Replace disposable packaging with reusable containers, reducing packaging costs and eliminating waste. 4)Achieve transportation cost savings by optimizing the return journey for material transport. By leveraging data-driven insights and rethinking logistics, we unlocked significant cost savings and operational efficiencies eliminating waste!