Now Trending in Logistics: The Hub and Spoke Distribution Model

What is a hub and spoke distribution model?

As its name suggests, a hub and spoke distribution model is a centralized warehousing and shipment system that resembles the structure of a bicycle wheel. The center of the wheel is the hub or a distribution center and each spoke represents a direction of delivery.

How is it different from a Point-to-Point distribution model?

In a point-to-point distribution model, packages typically move between point A to B, C, D, or E based on delivery requirements and inventory availability at that time.

In a hub-and-spoke model, distribution centers/ warehouses are strategically placed at a location from where reaching multiple delivery locations is possible with the most optimal travel distance and time.

Advantages of the Hub and Spoke Distribution Model

Simplifies shipment processes

Enables accurate allocation of delivery partners

Improves workforce productivity

Helps with efficient route planning

Ensures faster all-mile deliveries

Reduces operational costs in logistics

Is it ideal for your supply chain?

The hub and spoke model is ideally suited for supply chain enterprises with bulk day-to-day orders within a fixed radius.

E-commerce players

Consumer goods retailers

3PL companies

Meal-kit delivery businesses

Hyperlocal delivery businesses

All in all, the hub and spoke model is certainly a more flexible and profitable distribution network ensuring smooth flow of goods and cost-efficient deliveries.

Share this infographic by using this embed code:

Schedule a meeting with Locus

How can Locus help manage your logistics?

Locus’ proprietary geocoding engine converts the fuzziest of the addresses into precise geographical coordinates thereby helping your on-ground executives locate addresses easily.
Digitize all your operational variables such as fleets, delivery persons etc. to come up with the best route plan every day.
Track your orders in real-time with the Locus Live Dashboard. Locus’ all-mile delivery app Locus On The Road (LOTR) helps delivery partners process orders.
Visualize and tweak your scheduled plans via three key metrics— geography, time, & vehicle (fleet)—with a birds-eye view of your entire operations.
Build your own reports and analyze important parameters that you need to make key decisions.

Join Industry Leaders:

68m+ miles

Reduction in distance traveled

12m+ kgs

Reduction in GHG emissions

$330m+

Savings in logistics costs