Truckload Shipment v. Shared Milkrun
In this blog series, we have compared several different methods that are used to transport freight from one location to another. Carefully analyzing the way freight is shipped can lead to significant cost savings in your supply chain. In this issue of our series, we will take a closer look at the Truckload Shipping Method compared to the Shared Milk Run.
When using the Truckload Shipping Method, a shipment will remain at the dock until the truck’s cube is fully utilized. Once the cube has reached its capacity, it will then be shipped. As you can imagine, this means that there can be quite a bit of down-time while waiting for the freight to reach capacity, which in turn causes longer lead times and allows inventory to accumulate within a facility. While it does make the most of cube, it is not a beneficial shipping method for “just in time” delivery or lean manufacturing methods.
Comparatively, a Shared Milk Run is a quite effective when wanting to keep inventory levels at a given facility low. This method allows drivers to pick up freight during scheduled time windows, which in turn allows the traffic in the facility to be minimized. Because the routes run 24/7, crossdocks are always shipping and receiving freight. This allows a Shared Milkrun to reduce empty miles, increase trailer utilization, and ship faster than a Truckload Shipment.
In addition to this, the Carter Shared Milkrun has an expansive network of customers and suppliers that allows us utilize dynamic routes. Because the network is so large and can be rerouted to fit each customer’s needs, it gives each customer flexibility in volume changes to ensure that they have the right space reserved for each pick-up. This ensures that you are paying for only the space you are using despite fluctuation in volume, while also sharing the cost of the shipment with other companies.
Overall, a Shared Milkrun has several added benefits when compared to a Truckload Shipment. Because Carter Express has analysts that are constantly reviewing routes for the best efficiency, you can be sure that your freight is moving as quickly as possible. Contact one of our 1,200 logistic professionals to evaluate your shipping needs!