Hub-and-spoke distribution centers are designed to speed up warehousing and delivery by channeling operations to one manufacturer that is particularly well equipped to handle the distribution of products to their various destinations.

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Hub-and-spoke distribution centers are designed to speed up warehousing and delivery by channeling operations to one center (hub) that is particularly well equipped to handle the distribution of products to their destination. The idea of a hub location is to consolidate traffic from different origins and send it directly or via another hub to different destinations (nodes that are not destined as hubs are referred to as spokes), thus achieving economies of scale on hub-to-hub links.

Hub-And-Spoke Distribution Centers Are Designed to Speed Up Warehousing and Delivery