•In this model, the distribution hub is the location that holds inventory for a large region, with each spoke leading to smaller distribution centre, which houses inventory for a smaller region.
•The main driver of the hub and spoke model is the proximity to the customer, with the goal being to supply to a maximum numbers  of customers in minimum time.
•Currently, Hub and Spoke model is restricted to fulfilling the just-in-time needs of heavy manufacturing industries.
•If a company expands its operations, its suppliers may move to nearby areas so as to supply it more efficiently. In this case, company that expands is the hub and suppliers are its spokes.
•The type of product to be distributed largely necessitates a hub and spoke operation.
•The products that cannot be air freighted are mostly distributed through hub and spoke model.
Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
2 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account