Spoke-hub distribution paradigm

The Spoke-hub distribution paradigm (also known as a hub and spoke model) derives its name from a bicycle wheel, which consists of a number of spokes jutting outward from a central hub. In the abstract sense, a location is selected to be a hub, and the paths that lead from points of origin and destination are considered spokes. Because of the efficiency (and relative inflexibility) of the model, it requires that the items (or people) being distributed must be routed through a central hub before reaching their destination.

Two industries that make use of this model are transport and freight.

Federal Express founder Fred Smith pioneered the hub and spoke model for overnight package delivery in the mid-1970s. Its hub was in Memphis, TN. Soon after, other firms like UPS and Airborne had no choice but to develop their own hub and spoke model given the natural superiority of this system for speedy delivery of packages.de:Hub and Spoke it:Hub and spoke

Template:Econ-stub

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