Operation Analysis And The Saving Cost Analysis Of MILKRUN

With the rapid development of the automotive industry, the overall output of the volumes is increasing dramatically every year in China. Now, China is one of most important manufacturing bases all over the world. However, comparing with the western and Japanese automotive companies, China still has a large gap especially in the production efficiency of logistics system. The main reason is the old and conventional logistic system. In the conventional logistics system, automotive manufacturers usually have a large number of the transporters, high inventories, and the stock as well as transport cost remains always at a high stage. The above situation would increase the cost of the company, lead to quality problems, which would not meet the requirements of the modern automotive industries. The solution is to improve the level of logistics managements. If the conventional way of the logistics system would be improved, using LLM, JIT, MILKRUN, the cost of the inventory could be decreased and the efficiency of the transport system would be increased significantly.As a result, in this article, the operation situation and decreasing cost advantages of the Program MILKRUN has been studied and analyzed, in which Company G is used as a sample. The trial operation situation of MILKRUN in Company G and the corresponding implementation of MILKRUN in the company are analyzed, such as IT application, packing management and so on. To emphases on the cost saving of the MILKRUN, the stock cost saving and the transports cost saving are studied respectively, which are the two aspects of the conflict. With a great deal of data analysis, logical proof, and scheme study, it obtains the internal saving rules and the key factors. At the same time, it also reaches the conclusion, that the two respects can have the coherence to the MILKRUN cost saving within a reasonable design, which is the base to prove the rationality, feasibility, and inevitability of replacing the traditional transport mode.The article uses Ningbo Tuopu, a current supplier of the Company G, as the basis to describe the theory of the Milkrun, and how it would imply to the cost saving of the system, which is the further prove of the feasibility and efficiently.