Hub and Spokes Model
Hub and spokes model can be described as a system, which simplifies networks of transportation routes and brings efficiency in various modes of transport. It has been highly adopted in commercial aviation where both passengers and goods are transported. Hub and spokes model have brought many benefits, and some of the advantages associated with this model are discussed below.
There have been advantages brought about by the model in maritime mode of transport. This mode of transport has benefited with improved efficiency this is because of having a similar origin, which has ensured maximum utilization of each transit. (Jacobson, 2007) Amount of goods lost in delivery has also been reduced because items are packed according to their destination and from a single central origin.
There is also reduced cost in maritime transportation resulting from having a central origin and fully utilization of capacity of the containers. This reduces the management and administrative cost involved. In addition, there is the advantage of economies of scale because goods are transported in bulk thereby, enjoying discounts.
Air transport mode has benefited from the hub and spoke model in various ways one advantage is reliability and efficiency. This has been experienced because of having one origin, which is serving many destinations. (Wonnacott, 1990) Another advantage is cost reduction, which comes up because of reducing time spent on transport. Other costs savings arise due to reduced fuel cost, regulatory costs and even labor cost.
There are also advantages relating to rail transport brought by the hub and spoke model. There is the advantage of economies of scale associated with large loads where the owners lower costs per unit. (Bontekoning, 2006) Reduction of management cost is also another advantage because of focusing on a central location for distribution logistics. Efficiency, is also brought by hub and spoke in rail transportation, this is because of the sole responsibility assumed by officials from a central origin.
Finally, hub and spoke model has benefited the truck mode of transportation in a number of ways. First, it has made the management of trucks easy, and the cost of managing the trucks has been reduced, this results from having a central origin. (Jacobson, 2007) Other costs such as; fuel and labor costs have been reduced because of reduced bottlenecks since loaded trucks are usually released conveniently according to their destinations.