Hub and Spoke shipping model is being used by several company’s now

Hub and Spoke shipping model is being used by several company’s now

The Hub and Spoke shipping model is being used by several company’s now. Lowes, Amazon,Walmart,FedEx, and UPS to name a few. This model allows shorter trips for drivers and in turn quicker response to customers. In the event a truck breaks down in many cases there is a neighboring hub that can swap out equipment and keep the shipment moving in the right direction. It also helps companies reduce inventory and costs in general. Hub and Spoke operations just make sense for a larger company. Can you think of any other trucking companies that use this method?

reply 100 words to instructor class 352 wk 7:

 

Class,

Discuss the differences in the hub and spoke systems that move people over those that move freight.

reply 100 words to student higdon 250 word post class 441 wk 7:

 

Good Morning Class,

I hope you are all doing well this week.

Hub and Spoke operations offer many benefits to supply chain operations.  Using this method of distribution enables firms to reduce inventory, transportation costs, and improve cycle times (scm.ncsu.edu) .  This method uses a centralized operations with several key hubs distributed across its operational map.  Each hub can  house and ship products to their intended service area. This reduces shipping time by enabling drivers to make shorter trips between hubs inside the network.

From my own experience with working at FedEx Freight, we were able to access parts inventory from any FedEx Freight location. If the hub located in Charlotte North Carolina had a specific starter that we could not source locally they could do a transfer. This is a direct way that Hub and Spoke operations can reduce inventory and employ efficient techniques.

Penske also utilized the Hub and Spoke model. An article from their website simplifies the process saying, “Driver A leaves from his origin hub and meets Driver B at a switching point. They then exchange trailers. And while Driver B continues to the next switching point, Driver A heads back to his originating hub. This sequence of events keeps products in continuous motion and allows drivers to return home each night”(penskelogistics.com).  This is how many freight companies operate around the clock. Aside from saving money for the company this is also beneficial to its employees. In an industry that historically meant spending time away from your family for days or weeks at a time, this offers a normal job schedule allowing time home for drivers.

Increase Efficiency by Embracing the Hub-and-Spoke Model. (n.d.). Retrieved July 17, 2018, from www.penskelogistics.com/industries/automotive/hub-and-spoke/index.html

Success with Hub and Spoke Distribution | Supply Chain Resource Cooperative | NC State University. (2003, October 14). Retrieved July 17, 2018, from https://scm.ncsu.edu/scm-articles/article/success-with-hub-and-spoke-distribution

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