Efficient Green Logistics in Urban Areas: Milk Run Logistics in the Automotive Industry

Abstract

Purpose – In this chapter, the potential of Milk Run logistics, a method for consolidating freight, is analysed. Milk Run logistics provides a host of possibilities for consolidating freight transport activities and thus using transport capacity efficiently. It utilizes one vehicle to conduct several pick-ups/deliveries in a round trip, which means that the pick-up/delivery points should be located in a limited area which can be covered in a one-day trip.

Findings – Milk Run logistics seems highly beneficial in congested urban environments in developed and developing countries although it may also work in other areas. Furthermore, it can be linked to long-distance logistics, by rail for example, in the national and world-wide network of large companies.

Application – Examples for three automotive companies are given: Toyota with its logistic concept for the Bangkok region, Webasto, a supplier of hardtops and other car parts, and Audi, a daughter company of Volkswagen. All of them have introduced green logistics concepts including Milk Runs, which help to reduce CO2, waste material and – last but not least – costs.

Implications – The chapter concludes with indicating the high potential of Milk Run logistics to China and its rapidly developing automotive industry.

Citation

NEMOTO, T. and ROTHENGATTER, W. (2012), "Efficient Green Logistics in Urban Areas: Milk Run Logistics in the Automotive Industry", Mackett, R.L., May, A.D., Kii, M. and Pan, H. (Ed.) Sustainable Transport for Chinese Cities (Transport and Sustainability, Vol. 3), Emerald Group Publishing Limited, Leeds, pp. 319-337. https://doi.org/10.1108/S2044-9941(2012)0000003017