Hub and Spoke Logistics

When goods are moving from warehouses to customers or stores, they don’t always take a straight path. That’s where hub and spoke logistics come into play. It’s a model that helps companies organize shipments more efficiently.

What Does the Hub and Spoke Model Look Like?

In this setup, there’s one main location called the logistics hub. All shipments are sent from or through this central point. From there, goods move out to smaller locations or directly to customers. These smaller points are the spokes.

Think of a wheel. The hub is in the middle, and the spokes connect it to different points on the edge.

Why Use a Central Logistics Hub?

Using a central hub gives more control over your shipping and inventory. It makes it easier to manage routes, combine shipments, and reduce unnecessary trips.

With centralized distribution, you can:

• Ship more in fewer trips
• Plan routes better
• Cut down on storage needs in multiple locations

This model is especially useful for companies handling large volumes or operating across regions.

How It Supports Last Mile Delivery

The last leg of shipping, known as last mile delivery, is often the most complex and costly. Hub and spoke logistics helps simplify this by grouping orders at the hub and sending them out efficiently to local areas.

It allows businesses to serve more locations without building warehouses everywhere. One hub can support many destinations without losing speed.

Who Uses Hub and Spoke Logistics?

Retailers, e-commerce brands, and freight companies all use this model. It’s ideal for businesses that want to scale without adding too much complexity.

Even growing businesses can use this structure to reach more customers while keeping costs in check.

Hub and spoke logistics helps simplify how goods move across regions. Newl uses this model to support faster delivery, smarter inventory management, and better coverage across the map.

Whether you’re shipping locally or across borders, Newl makes the process easier from hub to doorstep.

Frequently Asked Questions

1. Can a business have more than one logistics hub?

Yes. Some companies use multiple hubs in different regions to reduce delivery times and improve coverage.

2. Is hub and spoke only for large companies?

No. Smaller businesses can benefit too, especially if they ship to multiple areas from a single location.

3. Does this model help with inventory management?

Yes. It allows businesses to track inventory in one place and reduce overstocking at multiple sites.