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?

point-to-point

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.

point-to-point

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

Simplifies shipment processes

Enables accurate allocation of delivery partners

Enables accurate allocation of delivery partners

Improves workforce productivity

Improves workforce productivity

Helps with efficient route planning

Helps with efficient route planning

Ensures faster last-mile deliveries

Ensures faster last-mile deliveries

Reduces operational costs in logistics

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.

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.

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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’ last-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.

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