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Supplier Milk Runs in QAD
Posted on: January 15, 2025 | By: Alexa Leitner | QAD Business Process
In today’s manufacturing and supply chain environment, efficiency is key. Companies are continually looking for ways to streamline operations and optimize their processes, particularly when it comes to sourcing materials. One solution that can significantly improve supply chain management is the “Supplier Milk Run” functionality in QAD. This capability enables businesses to enhance their supplier relationships, reduce transportation costs, and improve inventory management.
What is Supplier Milk Run?
A Supplier Milk Run is a transportation strategy that allows businesses to consolidate multiple supplier pickups into a single trip. Rather than sending separate trucks or vehicles to pick up small orders from different suppliers, a milk run coordinates a route that collects materials from multiple suppliers along a predefined path.
In QAD, the Supplier Milk Run functionality is integrated into the system, providing a seamless process for scheduling, routing, and tracking these pickups. This feature enables manufacturers to improve supplier coordination and reduce the complexity of managing multiple inbound deliveries.
Setup in QAD
The first setup to execute Supplier Milk Runs in QAD is to setup the Logistics Control screen for Pickup Sheets in AUX. Setting the “Pickup Sheet Sequence ID” that is defined in number ranges allows the system to auto generate the numbers for the Pickup Sheets to support this functionality. Optionally, you can also enter the “Pickup Sheet Release ID Prefix” which the system will use to identify supplier schedule releases based on schedules that were updated during the pickup sheet processing.
The second setup step is to define the methods your suppliers or your company uses to transport the items using the Supplier Transport Modes screen in AUX. In this screen you define the vehicles that will be used to transport the material which could be your own vehicles or belong to a logistics provider. For each vehicle you can set the max weight and volume that the vehicle can hold. You can also set the number of pallet locations and stacking level so the system can calculate the total pallet capacity.
The third setup is using the Supplier Networks screen in AUX to associate the suppliers and vehicles to this defined network. In this screen you define which suppliers are associated with this route and assign them a sequence number which defines the route the truck will take when Pickup Sheets are generated. There are also four optimization rule options which the system will use to fill open capacity on the delivery vehicle by pulling in future requirements. You will also link the Supplier Transport Modes set up in the second step to provide the system with the possible vehicles that can be used on this route.
Execution in QAD
Once the all set up is complete, and there are Supplier Schedules or Purchase Orders in for these suppliers, you can use the Pickup Sheet Auto Create screen in AUX to bulk generate pickup sheets for your milk runs. This screen has several different selection criteria and filters so you can create pickup sheets specific to dates, planner codes, network IDs, optimization rule, etc.
Once the Pickup Sheets are created, you can use the Pickup Sheets screen in AUX to manage or update sheets. (Note that discrete purchase order quantities cannot be updated on this screen.) This screen will show utilization for weight and volume while also displaying current weight and volume for the specific pickup.
You can print the pickup sheets using the Pickup Sheet Print screen in AUX. The pickup sheet is used for the logistics carriers or your driver to execute the pickup route for these suppliers.
The Supplier Milk Run functionality in QAD helps companies streamline their inbound logistics, improving both operational efficiency and cost-effectiveness. By consolidating pickups and optimizing delivery routes, manufacturers can reduce transportation costs and enhance their supply chain management. As businesses continue to face pressure to improve their logistics and supply chain processes, leveraging these capabilities within QAD provides a clear advantage in creating a more efficient and responsive operation.
Next Steps
If you want to learn more about Supplier Milk Runs in QAD, contact us here to see how we can support your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.
