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Purpose – In this chapter, the potential of Milk Run logistics, a method for consolidating freight, is analysed. Milk Run logistics provides a host of possibilities for consolidating freight transport activities and thus using transport capacity efficiently. It utilizes one vehicle to conduct several pick-ups/deliveries in a round trip, which means that the pick-up/delivery points should be located in a limited area which can be covered in a one-day trip.

Findings – Milk Run logistics seems highly beneficial in congested urban environments in developed and developing countries although it may also work in other areas. Furthermore, it can be linked to long-distance logistics, by rail for example, in the national and world-wide network of large companies.

Application – Examples for three automotive companies are given: Toyota with its logistic concept for the Bangkok region, Webasto, a supplier of hardtops and other car parts, and Audi, a daughter company of Volkswagen. All of them have introduced green logistics concepts including Milk Runs, which help to reduce CO2, waste material and – last but not least – costs.

Implications – The chapter concludes with indicating the high potential of Milk Run logistics to China and its rapidly developing automotive industry.

Sane and civilised people, capable of thinking clearly, now recognise that if the peace of the world is to be secured, and that if another and even greater cataclysm is to be prevented, the Huns and their accomplices must be crushed, and crushed so completely that their recovery of the power to do evil shall be rendered utterly impossible. The persons who are “Pro‐German” for reasons at present best known to themselves, and the peace‐at‐any‐price cranks, may be left out of consideration except in so far as the advisability of placing the former under lock and key and the latter in lunatic asylums demands attention. A premature and inconclusive peace which would make it possible for our abominable enemies to rise again and threaten civilised mankind is unthinkable, and the Allied Powers must of necessity carry on the war until the Thugs of Europe have bitten the dust and have been compelled to sue for peace without terms or conditions. When the “Central Powers” have been forced to their knees, and the Allied armies of occupation have made them taste the bitterness and humiliation of invasion, the surviving criminals will be placed at the bar to receive the sentence of their judges, while the populations who have approved and applauded their hideous acts must also have adequate punishment meted out to them. What form is that punishment to take? The long and ghastly account has got to be read out and settled—so far as it can be settled in this world. What is to be the settlement?

After completion of the case study, students will be able to understand the concept of clustering and identify clusters for improving capacity utilization, analyse transport routes to optimize logistics resources, analyse the impact of a full truckload on resource optimization, evaluate unused capacity and ascertain the impact of reverse milk run to reduce the same and apply clustering and reverse milk run to optimize the logistics resources.

The case study is about a freight forwarding company that offered end-to-end logistics solutions for the exporters based in India. Within a short time span, the company became one of the sought-after service providers for its clients. However, when the company planned to expand its business by expanding its client base, the efficiencies reduced and hurt the profitability of the company. It was all excellent with the limited number of clients, but as the number of distantly located clients surged, the operating costs increased. Trucks were running with partial loads, thus reducing efficiency. The rate of increase in cost surpassed the rate of revenue every time. The cost per mile of transportation was on the rise. The surging fuel prices were adding to the heat. In spite of being one of the first choices for clients, the company could not generate good profit margins. If they chose to increase prices, the company would have lost customers to the cheaper unorganized players in the market. It was time to choose between growth and survival. The company could not sustain itself without devising a mechanism to reduce costs. The company would not have sustained itself without devising a mechanism to reduce costs. To sustain in the business, the company had to device a mechanism to reduce costs. Whether to continue operating the conventional way or to transform? Was there a logistics strategy that would have improved transportation efficiency and reduced the costs for the company?

The case study is suitable for teaching post-graduate management courses in operations and logistics, supply chain management and supply chain analytics, as well as entrepreneurship-related courses.

Teaching notes are available for educators only.

CCS 9: Operations and logistics.

Member-owned business organizations, such as cooperatives, are engaged in various economic activities that touch our everyday lives. Sitajakhala Dugdha Utpadak Samabai Samiti Limited (Sitajakhala Dairy Producers Cooperative Society Limited) is a successful cooperative society in the northeastern region of India. The purpose of this case study is to illustrate how the cooperative manages its production and supply chain of milk and milk products and highlights several issues that the cooperative encountered in the recent past and how those issues were managed. This case also illustrates how an agribusiness cooperative has been growing over the years, including expansion of business and the creation of a brand image, as well as benefiting its members and their communities.

The authors used a case study approach where they went for in-person interviews of Sitajakhala's executive members and office staff; in addition, the authors were given access to Sitajakhala's marketing and financial records as well as its annual reports and vision documents.

Sitajakhala Co-op provides a platform where individual dairy farmers (most of who are small farmers and many of them are illiterate) can unite to bargain for higher prices for their milk. Due to its member-oriented business strategy, Sitajakhala Co-op has been growing well with active support of its members. Consistent quality control and marked improvements in labeling, bottling and packaging of milk and milk products has helped the cooperative to establish itself as a leader in dairy products supplier in Assam among bulk buyers as well as individual consumers. Sitajakhala cooperative also provides dairy farming related services to its members for free of charge to improve milk production and quality. One of the shortcomings of the cooperative is underutilization of its modern milk processing plant which needs to be addressed by the management in earnest.

This case study is based on information from one dairy cooperative in Assam, India; thus, the findings of this case may not translate into other dairy cooperatives in India or elsewhere. Nonetheless, cooperative practitioners may find the findings useful from a management perspective.

Sitajakhala Co-op management was keenly aware of the non-dairy related needs of the community it serves. Some of such services include free medical ambulance service for its members, supporting secondary education through providing merit and need-based scholarships and funding physical improvements to a local high school and a local college. In addition, the cooperative regularly provides funding to local sports and cultural events and local social institutions which have positive impact on the larger community. Sitajakhala cooperative has been providing employment to the local youth in the Morigaon area and plans on continuing to do so.

To the best of our knowledge, this is the first case study focusing on the management and operations of a dairy cooperative in the northeastern part of India. Knowledge gained from such study is expected to benefit not only Sitajakhala cooperative but also other dairy cooperatives in a similar situation. This case study will also benefit senior undergraduate and/or graduate students specializing in agricultural economics/agribusiness and can also be used for executive training for the management of academic institutions and food companies.

The global outbreak of COVID-19 and its subsequent varied impacts on different economic activities necessitate to examine its disruptions and impacts on livestock sector in India due to its recently surging potential as an unrivaled alternative to boost farmer’s income.

The studies for review were identified through search in different databases using relevant keywords. Only full text papers written in English language were reviewed. The review was organized and streamlined using Covidence software.

Analysis of the literature reveals adverse effects of COVID-19 on functioning of input and output stages of livestock supply chains. This has resulted in upstream and downstream economic losses that affect livelihoods of the producers.

Scale of unprecedented crisis due to COVID-19 pandemic requires creative policy decisions to make livestock production systems robust, resilient and sustainable. Organized production systems are required to integrate with livestock-tech startups to modernize their supply chains, whereas local supply chains are required to reorient with government’s intervention in terms of developing on-farm production and postproduction processing facilities.

Although there exist some evidence on COVID-19-related impacts on livestock sector of India, but an integrated review of evidence on COVID-19 related disruptions at all the stages (from input supply to marketing) of livestock supply chains was missing.

Saudi Arabia's 2030 vision targets an increase of 34% in non-oil revenue participation in the GDP, thus the need for automation and digital transformation. The Company ER is a market leader producing high-quality dairy products in the Kingdom and is a pioneer in the production industry. The company has recently increased the capacity of its milk factory to meet its vision. An investment was made to automate the pallet handling procedures at the milk factory to provide increased production for daily consumption. The new automation transition in Company ER's milk factory provides a unique opportunity to utilize lean management tools to improve the current automated processes before commercialization.

OEE (overall equipment effectiveness) will monitor losses for different operational losses in the new automated system and indicate system improvements, with 85% as the target. Based on DMADV (design, measure, analyze, design and validate) methodology, this study analyzes the entire automated pallet handling system. It uses lean tools to identify areas for improvement, identify waste elements and propose solutions to achieve Company ER's OEE targets.

In this paper, the outcomes will be presented as documented solutions that address the losses encountered in the production system, showing a 12.8% increase in the system's OEE.

Owing the time and resource constraint, this study only involved automated pallet handling procedures in a milk production facility. Hence, the generalization of the result is slightly limited. More studies in several different processes and sectors are required.

This study provided a valuable tool for researchers for gaining deeper understanding regarding the lean manufacturing and its implementation. For practitioners, it is useful to evaluate the degree of lean manufacturing tools in their material handling systems.

This study is the first attempt to develop lean manufacturing constructs for evaluating the automated pallet handling procedures in a milk production facility.

This paper presents a case study of Renault Samsung Motors (RSM) that recently encounters dynamic changes unveiling various opportunities and challenges due to increasing complexity of the supply network with growing sales volume, diversifying models, and intensifying global competition. Such competitive environment puts constant pressure on the logistics operations to reduce supply costs and lead time, but the RSM has not been paying much attention to aligning interests of supply chain partners. In 2007, RSM’s effort to build partnership with new 3PLs turned abortive due to their unexpected default on the contract throwing RSM into confusion and disruptions. In this study, the problem was investigated by examining route planning process and incentive scheme of 3PL, and an optimization model was constructed to evaluate the performance of existing 3PL operation. The results indicate that transportation cost can be reduced by relocating consolidation centers, utilizing regional terminal and redesigning routing sequence. However, the research found that the key to successful implementation of the optimized solutions is in designing effective incentive system that induces partners to participate in continuous improvement initiatives.

Develops a method for estimating the monthly milk price schedule needed to counter the effects of seasonality, which is an enduring feature of milk production in the UK. The issue of seasonality has been mostly ignored in studies estimating milk supply functions. In this paper milk supply functions which explicitly take account of seasonality are estimated for Northern Ireland and Scotland. Pre‐testing of monthly milk price and milk supply time‐series, using an extended HEGY test and an ADF test, indicated the presence of deterministic seasonality. Empirical milk supply models incorporating seasonal dummy variables to account for deterministic seasonality were estimated in the two regions of study. The results of these models were used to calculate the monthly producer milk price schedule required to encourage dairy farmers to produce an even monthly milk supply pattern. These calculations indicated that, in the long run, a peak‐to‐trough seasonal price differential of around 8 pence per litre would be required to produce an even pattern of milk supply in Scotland, and 11 pence per litre would be required in Northern Ireland.

In those frightening years between the two Wars and governments in France came and went with dismal frequency, it used to be said that any French Government which permitted food prices to rise had no chance whatever of surviving, and the result was that food was bountiful and incredibly cheap. Times have changed dramatically but not the attitude of people to the price and availibility of food and, in particular of political control; this is very much the same as always. Mostly, it revolves around the woman and what she sees as an abuse, greed and taking mean advantage of prevailing conditions and, make no mistake, this will be reflected in the political field; in the way she votes. It has happened in previous elections; it will happen in even greater degree in the next election and, although not decisive, it can have a not insignificant impact. None know better than the housewife how meaningless is the smug talk of the politicians when it comes to food prices. Their attitude may not have been the main factor in throwing out the last Conservative Government; this was undoubtedly the fear that their continuance in office would result in widespread strikes and the serious effect these upheavals have on food prices (and other household necessit ies), but the votes of woman were an unimportant contribution. As it was, it mattered little to the muscle men of the trade unions which party is in power. Women's talk around the shops and supermarket's, up and down the High Street to‐day is one long grumble and disillusionment with politicians generally.

The endeavour that is being made at the present time to rouse public interest in the extremely important question of the purity of the national milk supply is one that deserves unqualified praise. It is in no spirit of carping criticism that it is here pointed out that the partial and unofficial remedy by which it is proposed to diminish the risk to the consumer may in itself be indirectly a means of continuing what has become a grave public danger. No reasonable doubt can exist that pasteurization as a method of dealing with large quantities of milk in bulk and from all sources will be of considerable use. It will certainly tend, if carried into effect to the extent and in the way suggested, to greatly lessen the risk that consumers run at the present time. It will prevent a large amount of disease that arises from the consumption of impure milk. But such a method, however admirable and philanthropic in conception and sound in theory, is one that by no means answers all, or even a part of, the large number of important questions connected with the subject. The general public and honest milk dealers will, it is to be hoped, benefit by the new milk legislation that is proposed by the Local Government Board and by the London County Council. The public, however, is very apt to be caught by a phrase, and may, therefore, think that “milk pasteurization” is the beginning and the end of all that need or can be said on the subject. It is likely that the foundation of depots for the preparation and supply of pasteurized milk will blind its eyes to the fact that the evils which have rendered the establishment of such places necessary remain untouched. Indeed, the very fact that milk depots of this kind are at work may be used by interested persons as evidence that all hygienic requirements have been complied with, that for this reason veterinary considerations may be ruled “out of court,” and that the necessity for further legislation of a more fundamental and drastic kind no longer exists. The agitation that is taking place at the present moment is no new thing. For many years past the matter has engaged the most serious attention of those experts whose business it is to investigate and, as far as they are permitted, to control the quality of the milk supplies of both our town and country districts. For example, a perusal of the annual reports of the Local Government Board that have been issued since that Board was instituted in the early seventies, will satisfy any one, who takes the time and trouble to read them, that Public Analysts have from time to time animadverted in terms more or less strong on the poor quality of the milk supplied, and that even if the field of inquiry be limited to what may be called purely analytical standards the difficulties of the case are enormous, even if they be looked at from the best and the most hopeful point of view. At the present moment we are more concerned with the equally important hygienic aspect of the question. Local self‐government, while conferring a large amount of autonomy on administrative units, has naturally resulted in an almost entire absence of any definite national system that can deal with the important subject of food supply generally and milk supply in particular. At the present time it is left to the local authority to decide whether it will or will not apply for powers from the central authority—the Local Government Board—to put into force regulations under the Dairies, Cowsheds, and Milkshops Order, though in cases where this has been done the benefit to all concerned has been marked, and the necessity for such action demonstrated. The subject of the milk supply divides itself, roughly speaking, into three branches, which may be referred to under the headings of Production, Carriage, and Sale, though it is evident that no sharp line of demarcation can be drawn. With regard to all of these the law is either defective or nonexistent. Under the present “system” prosecutions are mostly instituted against persons of whom it is alleged that they have knowingly sold milk from which fat has been abstracted or to which water has been added, but even here “the difficulties connected with the administration of the Sale of Food and Drugs Acts in the case of milk have been a constant subject of discussion between the officers of local authorities and the Board's Inspectors.” What these difficulties are are well known to all who are brought into contact with the administration of the Food and Drugs Acts, but any one can satisfy himself as to them by reference to, say, the last annual report of the Board of Agriculture in this respect, keeping in mind, at the same time, the fact that only one aspect of the case is there dealt with. Under the heading of Production brief reference may be made to the subject of the cow and her surroundings. Much evidence exists which shows the urgent need for expert and unbiassed hygienic and veterinary inspection of all dairy farms, cowsheds, and cows. In much that has been recently written on the subject of pure milk in the daily press, it is somewhat remarkable to note that while the dangers that arise from drinking raw milk derived from tuberculous cows has been rightly insisted on, comparatively little reference has been made to the importance of cow and cowshed inspection. It is unfortunately the case in too many instances that the owners of cows are content to house the animals in sheds under conditions that are usually, though wrongly, thought to be fit only for pigs. This, of course, leaves entirely out of the question the fact that the animals themselves may be tuberculous or otherwise diseased, and therefore a source of most serious danger to the public health. With regard to carriage of milk it may be pointed out that the modern city draws its supply of milk from all over the country, and that this means a rail journey of frequently some hours' duration. Our modes of transporting and handling milk have not, however, kept pace with modern requirements. The frequently Arcadian simplicity of the methods in vogue would appeal the more strongly to lovers of the picturesque if they did not lead so often to the introduction of filth of all kinds into the milk cans. Lastly, regarding the sale of milk from retailer to consumer, the public itself is largely to blame for the objectionable practice of adding colouring matter to the milk. A general impression is abroad among the poorer, and therefore it may be presumed the more ignorant, consumers, that milk is not genuine unless it be what is called “cream coloured.” Hence the introduction of annatto or some less innocent substance. For the frequent presence of such substances as formaldehyde, boracic acid, and other “preservatives” no excuse of any kind exists. Such practices are simply means but too often resorted to of masking incipient putrefaction induced by tardy and uncleanly methods. At the same time, these dangerous chemical preservatives make the “food” more difficult of digestion, with results to young children and persons in weak health that are too obvious to need comment. In addition to all this the milk may be subjected, of course, to adulteration of the usual kind. Hence the present position is that against defective methods of production and sale, out‐of‐date methods of transport, absence of any national and compulsory system of inspection and control, and a law that is either deficient or hopelessly tangled, a semi‐philanthropic method is proposed which, though probably sound and admirable in itself, is almost certain to be used by the unserupulous as a means of preventing the important problem of our milk supply being attacked in the only way in which there is reasonable hope of success—that is, by an appeal to the cow and its surroundings. Unless the method of pasteurization be recognised as a useful but still a subordinate means of dealing with an already contaminated substance, it is more than likely that tinkering and generally unsatisfactory legislation will be resorted to, and that as a result of this the state of the milk supply will remain very much as it is at present.