The hub and spoke model involves a central hub location that sources products and provides a single point of contact for clients. Spoke locations are spread across various cities and countries and provide localized, customized services and report to local client offices. The hub handles people development, client relationships, quality compliance and drives common delivery standards, while spokes focus on local service delivery. Key advantages include flexibility to add new spokes easily and efficient scheduling, while disadvantages include reliance on the hub and potential delays affecting the whole network if the hub or spokes are impacted.

1. HUB AND SPOKE MODEL
Submitted by :- Shivam Sharma

2. WHAT IS HUB AND SPOKE MODEL ?
Hub and Spoke Model/Network
involves a series of nods (Hub),
arcs (Spokes) that represent viable
transportation alternatives between
nodes.

3. CONT..
• The Hub and Spoke (H&S) model is used when there are multiple locations
sourcing, with a central location call the ‘HUB’. The location provides a single
point of contact to the client, called ‘SPOKES’ which are spread across the
country.
• The ‘HUB’, as above mentioned is centralised and has responsibilities such as
people development, client relationship management and quality and
compliance related matters whilst driving a common delivery standard to its
satellite locations.
• A ‘SPOKE’, is a delivery centre set up in city providing services to client’s
customers in a local and customised manner in line with the culture and
legislative requirements of the city. The spoke words closely with the client’s
local office and reports the performance to them.

4. PROS AND CONS OF H&S
Advantages Disadvantages
Spokes are simple, and new ones can be created
easily.
Inflexible, changes at the hub, or even in a single
route affects the whole network.
Scheduling is convenient since there are few routes,
with frequent service.
The hub constitutes a bottleneck in the network.
Complicated operations can be carried out at the
hub, rather than at every node.
Delays at a spoke can also affect the whole network.
Small numbers of routes generally leads to more
efficient use of transportation resources.
Cargo must pass through the hub before reaching
its destination, results in longer journey.

5. Cost Comparison of H&S and P2P
Point to Hub & Spoke
No. of routes 32 16
Cost 10000 10000
Total Cost 320000 160000
Save 160000
P2P
H&S

6. Hub and Spoke network is a systematic network which increases the business cost
effectiveness, and by escaping the Point to Point network they are able to provide
goods and services to the customer/consumer on time, which is also help in making
brand stronger in the market.
Conclusion

7. THANK YOU