Case Study of Milk Run System Improvement in Distributor Company

Afini Gelin Puspitorini, Naufal Faturrahman, Anton Ferdiansyah, Muhammad Iqbal Firdaus, Romi Fernando

Abstract


All companies’ objective is to keep improving their performance in order to maintain the highest profit. Distribution is a crusial activity both for a company and a distributor company. It is about how the goods are delivered to consumers efficiently and effectively as possible. Distribution also requires cost, so its maximization or improvement is really important and can help the company reduce the distribution and transportation cost itself. Milk Run is one of the distribution methods which consolidates the delivery for some supplier in one vehicle at one time delivery. This paper analyzes distribution cost saving improvement using milk run system by comparing data of distribution activity collected before and after using the system with analytical descriptive and comparative methods. The results show cost efficiency and other potential benefit from using milk run system. However, the limitation of this paper is the cost saving efficiency is in terms of the fleet size and number of vehicles used only. Further research should look forward to other more perspectives.


Keywords


Milk run; Distribution; Transportation; Logistics

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References


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DOI: https://doi.org/10.25292/atlr.v1i1.73

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Advances in Transportation and Logistics Research

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Published by: Institut Transportasi dan Logistik Trisakti, Jakarta - Indonesia

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