Enrichment : Journal of Management
Vol. 12 No. 5 (2022): December: Management Science And Field

Optimization of Transportation Costs With The Implementation of The Milk-Run Method

Kurbandi Satpatmantya Budi Rochayata (Universitas Pelita Bangsa)
R.R. Wening Ken Widodasih (Universitas Pelita Bangsa)
Hery Gunardi (Universitas Pelita Bangsa)



Article Info

Publish Date
01 Dec 2022

Abstract

The rapid development of technology and information affects the development of international logistics. These developments have an impact on efficiency and effectiveness in logistics processes which include integration of information, transportation, inventory, warehousing and distribution so that in the global logistics business, service providers compete to reduce logistics costs and maximize logistics services. The purpose of this research is to obtain the most appropriate and optimal pick-up and delivery transportation system that can minimize transportation costs. The population in this study is data from PT. Nippon Express Indonesia, and the sample of this study is data from November 2021. Analysis of determining distribution routes using the Milk-Run method. By using the Milk-Run method, the number of truck fleets can be reduced from 4 trucks to only 1 truck. The original mileage of 133.1 kilometers can be reduced to 74.8 kilometers, which means distance the could shortened/more economical as big as 44.1 % or around 58.3 kilometers. The reduction in trucks resulted in lower transportation costs. The original cost was Rp. 8,670,000 down to Rp. 6,300,000. Thus, there is a savings in distribution channel costs of Rp.2,370,000 or approximately 27.03%.

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Journal Info

Abbrev

enrichment

Publisher

Subject

Economics, Econometrics & Finance

Description

The Enrichment : Journal of Management offers wide ranging and widespread analysis of all surfaces of management and science. Published two times per year, it delivers a emphasis for universal proficiency in the vital methods, techniques and areas of research; presents a opportunity for its readers ...