Optimisation of milk run logistics for an automotive component manufacturer – A case study

Kumar S. Pranava, Lidwin Kenneth Michael, Asish Oommen Mathew, K. V. Sriram

Research output: Contribution to journalArticle

Abstract

Manufacturing firms in India prefer the Milk Run concept in logistics to procure raw materials and other parts for their production and assembly lines. This study conducted in a German automotive component manufacturer in India proves that through milk run logistics parts procurement can be controlled. A milk run logistics system comprises of round trips through which either the goods collected from several suppliers are transported to an individual customer or the goods collected from a distinct supplier are delivered to a diverse group of customers. Through participant observation and value stream mapping, an attempt is made to map, assess and evaluate the present routes of milk run trucks. The study also attempts to identify probable opportunities for re-routing in such a manner to minimise the procurement cost of the raw materials. Hence the number of trucks used for transportation of goods can be reduced which in turn would reduce the operating cost by saving fuel and time. This study contributes to increasing the company’s profit margin by reducing the production cost.

Original languageEnglish
Pages (from-to)27-34
Number of pages8
JournalQuality - Access to Success
Volume20
Issue number171
Publication statusPublished - 01-08-2019

Fingerprint

Logistics
Trucks
Raw materials
Operating costs
Costs
Profitability
Milk
Suppliers
Procurement
India

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Business and International Management
  • Strategy and Management

Cite this

Pranava, K. S., Michael, L. K., Mathew, A. O., & Sriram, K. V. (2019). Optimisation of milk run logistics for an automotive component manufacturer – A case study. Quality - Access to Success, 20(171), 27-34.
Pranava, Kumar S. ; Michael, Lidwin Kenneth ; Mathew, Asish Oommen ; Sriram, K. V. / Optimisation of milk run logistics for an automotive component manufacturer – A case study. In: Quality - Access to Success. 2019 ; Vol. 20, No. 171. pp. 27-34.
@article{464d74b78c4044e0b974814a2520ca4a,
title = "Optimisation of milk run logistics for an automotive component manufacturer – A case study",
abstract = "Manufacturing firms in India prefer the Milk Run concept in logistics to procure raw materials and other parts for their production and assembly lines. This study conducted in a German automotive component manufacturer in India proves that through milk run logistics parts procurement can be controlled. A milk run logistics system comprises of round trips through which either the goods collected from several suppliers are transported to an individual customer or the goods collected from a distinct supplier are delivered to a diverse group of customers. Through participant observation and value stream mapping, an attempt is made to map, assess and evaluate the present routes of milk run trucks. The study also attempts to identify probable opportunities for re-routing in such a manner to minimise the procurement cost of the raw materials. Hence the number of trucks used for transportation of goods can be reduced which in turn would reduce the operating cost by saving fuel and time. This study contributes to increasing the company’s profit margin by reducing the production cost.",
author = "Pranava, {Kumar S.} and Michael, {Lidwin Kenneth} and Mathew, {Asish Oommen} and Sriram, {K. V.}",
year = "2019",
month = "8",
day = "1",
language = "English",
volume = "20",
pages = "27--34",
journal = "Quality - Access to Success",
issn = "1582-2559",
publisher = "SRAC - Societatea Romana Pentru Asigurarea Calitatii",
number = "171",

}

Pranava, KS, Michael, LK, Mathew, AO & Sriram, KV 2019, 'Optimisation of milk run logistics for an automotive component manufacturer – A case study', Quality - Access to Success, vol. 20, no. 171, pp. 27-34.

Optimisation of milk run logistics for an automotive component manufacturer – A case study. / Pranava, Kumar S.; Michael, Lidwin Kenneth; Mathew, Asish Oommen; Sriram, K. V.

In: Quality - Access to Success, Vol. 20, No. 171, 01.08.2019, p. 27-34.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Optimisation of milk run logistics for an automotive component manufacturer – A case study

AU - Pranava, Kumar S.

AU - Michael, Lidwin Kenneth

AU - Mathew, Asish Oommen

AU - Sriram, K. V.

PY - 2019/8/1

Y1 - 2019/8/1

N2 - Manufacturing firms in India prefer the Milk Run concept in logistics to procure raw materials and other parts for their production and assembly lines. This study conducted in a German automotive component manufacturer in India proves that through milk run logistics parts procurement can be controlled. A milk run logistics system comprises of round trips through which either the goods collected from several suppliers are transported to an individual customer or the goods collected from a distinct supplier are delivered to a diverse group of customers. Through participant observation and value stream mapping, an attempt is made to map, assess and evaluate the present routes of milk run trucks. The study also attempts to identify probable opportunities for re-routing in such a manner to minimise the procurement cost of the raw materials. Hence the number of trucks used for transportation of goods can be reduced which in turn would reduce the operating cost by saving fuel and time. This study contributes to increasing the company’s profit margin by reducing the production cost.

AB - Manufacturing firms in India prefer the Milk Run concept in logistics to procure raw materials and other parts for their production and assembly lines. This study conducted in a German automotive component manufacturer in India proves that through milk run logistics parts procurement can be controlled. A milk run logistics system comprises of round trips through which either the goods collected from several suppliers are transported to an individual customer or the goods collected from a distinct supplier are delivered to a diverse group of customers. Through participant observation and value stream mapping, an attempt is made to map, assess and evaluate the present routes of milk run trucks. The study also attempts to identify probable opportunities for re-routing in such a manner to minimise the procurement cost of the raw materials. Hence the number of trucks used for transportation of goods can be reduced which in turn would reduce the operating cost by saving fuel and time. This study contributes to increasing the company’s profit margin by reducing the production cost.

UR - http://www.scopus.com/inward/record.url?scp=85069483259&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85069483259&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:85069483259

VL - 20

SP - 27

EP - 34

JO - Quality - Access to Success

JF - Quality - Access to Success

SN - 1582-2559

IS - 171

ER -