Advantages of Hub and Spoke System to Various Modes of Transportation

Advantages of Hub and Spoke System to Various Modes of Transportation
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During the past, the principles of direct-route (point-to-point) operations guided the transportation industry. But point-to-point networks were disorderly and disorganized, and consequently, transit, aviation, and shipping firms were losing money. As technological development evolved, the transport industry identified more rapid cost effect approaches of shipping freight (Blecker and Aldarrat, 2009). The hub-and-spoke concept was created as a result of the industry’s determination to generate more effective networks. The spoke-hub model is a network of connections designed like a wire wheel through which all traffic moves along spokes are linked to the hub based at the center. The network is commonly utilized in the industry specifically in freight and transport. This paper explores advantages of the hub-and-spoke system to various modes of transportation.
Recently, shipping firms have been using the hub-and-spoke network to minimize costs and to speed up deliveries. Using this design; transporters collect goods from the place of origin (the spokes) and transport them back to the hub (a central processing facility). The hub-and-spoke system helps to enhance shipment tracking (Konings, Priemus, and Nijkamp, 2008). When goods are transported from the hub city, several routes are available that connect to a wide network of other cities. Besides that, nowadays airlines use the hub-and-spoke system for daily operations. Here, the central airport is the hub which air...