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Logistics & Trade · Definition

Hub and Spoke Distribution

Routing goods through a central hub rather than point to point.

A hub-and-spoke network consolidates freight at a central facility and redistributes it outward to regional spokes, instead of running direct routes between every pair of locations.

It cuts the number of routes sharply and fills vehicles better, at the cost of extra handling and a longer path for some consignments. It is why an overnight parcel often travels away from its destination before it arrives.

Also called

  • hub and spoke network

Related terms

Third-Party Logistics

3PL

Outsourcing warehousing and distribution to a specialist provider.

Cross-Docking

Moving goods from inbound to outbound with little or no storage.

Zone Skipping

Trucking consolidated parcels past intermediate zones before injecting them.

Freight Forwarder

An agent who arranges transport of goods on your behalf.

More in Logistics & Trade

Air Waybill (AWB) Bill of Lading (BoL) Bonded Warehouse Certificate of Conformity (CoC) Clearing Agent Container Freight Station (CFS) Cost, Insurance and Freight (CIF) Customs Clearance

Hub and Spoke Distribution is not just a definition here

Logistics & Trade runs on this vocabulary every day in AWRA OpsHub — 23 of our 257 glossary terms describe things the platform actually does.

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