Hub-and-Spoke Logistics Model
The hub-and-spoke logistics model is a popular freight distribution model that centralizes transportation activity at key hub locations. Shipments from various origins are routed through a central hub before being delivered to their final destinations (the spokes). This system is intended to simplify transportation routes, consolidate goods, and shorten transit times and costs. It is particularly successful in optimizing resources for freight forwarders, third-party logistics providers (3PLs), and carriers who deal with significant volumes of goods across multiple regions.
CargoWise supports the hub-and-spoke model by allowing users to set up centralized hubs, automate route selections, and manage shipment consolidation. Real-time data on hub activities allows carriers to better plan departures, enhance load efficiency, and save wasted distance. By reducing direct paths and centralizing sorting tasks, this strategy improves cost-efficiency and reliability. It also provides improved control over freight visibility, documentation, and exception management via a unified logistics platform.