Milk runs may be considered when a continuously moving trucks saves on out of route miles and overall logistics costs.  In this example:

 

• Four separate carriers haul loads for outside processing each carrying one leg of the load.  Each carrier has 25 miles deadhead to the pickup and 25 miles deadhead following their delivery.  Total cost of logistics is $900

  • $600 in truck cost for enroute miles (100 miles/leg x $1.50/mile for each of the four legs of the shipment)

  • $300 in deadhead truck cost (25 miles deadhead to pickup + 25 miles following delivery x $1.50/mile for each of the four legs of the shipment)

• A single carrier handles the milk run eliminating nearly all deadhead miles.  Total cost of logistics is $650​

  • ​$650 in truck cost for enroute miles (100 miles/leg x $1.50/mile for each of the four legs of the shipment)

 

$250 - TOTAL LOGISTICS COST SAVINGS