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Hub and Spoke
Hub and Spoke
PRESENTATION
ON
HUB AND SPOKE SYSTEM
UNDER
THE GUIDANCE OF
MR.VIRAJ JADHAV
INTRODUCTION
Hub & Spoke network involves a series of nodes
(hubs) connected by arcs (spokes) that represent
viable transportation alternatives between two
nodes.
A hub and spoke network is a centralized,
integrated logistics system designed to keep costs
down.
Hub and spoke distribution centers receive
products from many different origins, consolidate
the products and send them directly to
destinations.
SPOKE
SPOKE
IMPORTANCE OF HUB AND
SPOKE SYSTEM
Increase in market coverage.
Minimizing the transfer time.
Elimination of interlining.
Maximizing the number of marketable
connections.
Helps to enter inaccessible territories.
FUNCTIONS OF HUB AND SPOKE
• Stockiest are appointed in major towns and feeder
towns.
• Retailers in & around the towns get attached to
these stockiest.
• The stockiest take care of sub-distribution on the
terms and conditions determined by manufacturer.
• The stockiest operate their own delivery vans to
take care of secondary transport and local
delivery jobs.
PROS AND CONS OF HUB AND SPOKE
PROS CONS
1.Spokes are simple, and new ones 1.Inflexible,changes at the hub,or
can be created easily. even in a single route affects the
whole network.
2.Scheduling is convenient since there 2.The hub constitutes a bottleneck in
are few routes, with frequent service. the network.