Glossary Discription

The Hub Spoke System is a logistics network design where a central hub is connected to multiple spokes, which represent distribution points, warehouses, or retail outlets. Goods are transported from suppliers to the hub, sorted, and then dispatched along the spokes to reach their final destinations. This system allows for efficient consolidation of shipments, cost savings through optimized routes, and improved supply chain control. It is commonly used in air cargo, courier services, and retail distribution networks to manage high-volume flows of goods while minimizing handling and transport costs.

Characteristics:

• Central hub connected to multiple spokes
• Optimizes routes and consolidates shipments
• Reduces transportation costs
• Enhances supply chain efficiency and control