Ford Milk Run Systems Definition

Milk Run Systems History : IN THE past, especially in the West, milk used to be sold in bottles. The milk would be delivered like this: The bottles would be placed on crates and the crates loaded in a truck that would go to a locality and drop the bottles off outside each house. By the time it completes a round of the locality all the bottles containing milk would have been disposed of. The truck would then pick up the empty bottles from outside the homes and bring them back to the dairy. The truck would be full ensuring that it is utilised effectively in both directions.

Ford Milk Run Systems : Something similar is what Ford India Ltd does in collecting components from its suppliers located in different parts of the country. Ford has entrusted the task of collecting the components to a logistics partner, TVS Lean Logistics. The logistics partner has set up hubs in Delhi, Pune, Mumbai, Daman, Bangalore and Chennai to control material movement. These hubs are specific to Ford's requirement, according to Mr Tom S. Chackalackal, General Manager, Material Planning and Logistics, Ford India.

Ford has some 83 suppliers in all, 20 of them based in the North, 15 in the West, 13 in the South excluding Chennai, and 35 in and around Chennai. Ford sources some 750 parts from these suppliers, of which vendors in and around Chennai account for as many as 460. Those in the northern region account for 125 parts, western region 95 and the suppliers in the southern region the balance. The logistics partner collects the components as per the schedule provided by Ford, consolidates them in the hubs and transports them to the plant at Maraimalai Nagar, near Chennai. Twentythree trucks come to the plant everyday carrying components.

Necessary to use the Milk Run Systems : An effective track-and-trace system enables authentic transit information and vehicle traceability and input of advance shipment notification in the system helps to capture transit inventory, according to Mr Chackalackal. Ford uses the concept of reusable racks, bins and trollies for all parts collected from suppliers located in and around Chennai, which constitute a major part of the domestic supply base. The majority of these parts are directly delivered to the production line where only one shift inv entory is maintained. ``Pack integrity and adherence to schedule is ensured by our strategy,'' says Mr Chackalackal.

N. Ramakrishnan