BENGALURU: Each and every E-commerce company faces last minute delivery issues no matter how efficient their logistics are. To overcome this challenge, logistics are now devising smart strategies to cut costs through advanced technologies. By utilizing these technologies, these firms can maximize the volumes handled in each trip as orders come in real time basis, reports, ET.
Now, the ‘Milk Run’ model is being used and will be implemented by all the e-commerce companies. Basically a delivery boy delivers around 15 packages in a day and after that he has to come back empty handed because he could have done more deliveries than what has been given to him. This is where the Milk Run model comes in. It is a multi-pick, multi-drop system based on distance.
Milk Run model plan is successful when a delivery boy delivers 15 packages in just two hours time, there by gradually bringing down the labor cost as well as making higher revenue to the company. Logistics companies are now planning for this type of model because it will be better route planning and ensures better utilization of resources such as delivery vehicles and labor thus saving cost.
But for the success of this plan, the companies supply chain has to reach more masses in order to keep the customers promise of 30 minute pickup. Almost all the companies are following this same trick to up their revenue’s but sometimes clashes may occur between two companies delivery areas. This type of competition keeps them ahead of one another to gain a top notch hold in the market as well as customers.
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