Will Hub-and-Spoke make a comeback?

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Will Hub-and-Spoke make a comeback?

HUB-AND-SPOKE CAN BE A TIMELY SOLUTION FOR TIGHT SUPPLY CHAIN CAPACITIES

Many organizations like Federal Express, UPS, Lowes, and Amazon have implemented the hub and spoke distribution model over the last 15 years maximizing freight efficiencies.  The model represents freight traffic moves between a central hub and its spokes to increase efficiency, reduce costs and shorten travel time.  All deliveries go through a centralized distribution hub which is strategically located based on the organization and its customer base.  If deliveries are at risk, then the hub and spoke model could be a consideration.

HUB

The hub must be strategic in its placement to maximize the efficiencies in cost, resources and time.  Positioning of the hub if done poorly, can negatively impact operational costs.  Factors on Hub location should include proximity to airport, warehousing services and costs, usually a major city and alternative routes in and out of the hub location.

MILAN AS A HUB

MILAN’s location in Jackson TN is able to reach all southeast and midwest locations as a HUB location within a 4-8 hour timeframe.

SERVICES AS A HUB

Dedicated or Shared Warehouse Operations

Dedicated or Shared Human Resources

Inventory Management including Cycle Counts

Order Management

Shipment Management – Small Parcel, LTL or Truckload

Dedicated or Transaction Delivery with Asset-based Truckline

Customized Processes with Performance Metrics

Jackson HUB

 

SPOKE

A spoke location can be responsible for any postponement services before final local delivery to the customer or in many cases the spoke facility only deals with the central hub depending on how the hub and spoke network is developed.  Reduction in stem time will be seen by increasing distribution centers, truck efficiency, and improving time and distance on the road.  Usually the spoke facility is in a smaller city than the Hub facility.  To address tight capacity, additional spokes could be added to the wheel?

MILAN AS A SPOKE

Jackson TN has a strong transportation network and can easily deliver to western Tennessee consignees.  Connection with a hub in the southeast or Midwest is preferable with direct lines of transit.

SERVICES AS A SPOKE

Jackson SPOKEDedicated or Shared Warehouse Operations

Dedicated or Shared Human Resources

Inventory Management

Cross Dock Services or Transloading Services

Order Management

Postponement and Value Added Services

Shipment Management

Dedicated or Transaction Delivery with Asset-based Truckline

 

MILAN’s Jackson operation is a 300,000 s.f. facility that supports food-grade products.  This shared facility can be used in conjunction with hub or spoke needs by customers depending on space requirements.  This campus environment easily allows sharing of services and resources.  However, a new dedicated operation can be added and still use the benefits of a shared campus.

JACKSON, TENNESSEE BENEFITS:

Regional hub of over 300,000 people

Nine county regional workforce supported by seven universities/colleges

High work ethic and productivity

Major highways and interstates from Jackson in every direction; Sitting on Interstate 40 with 4 lane highways in every direction with easy access to Interstate 55.

Centrally located in the southeast

Central Time Zone allows doing business with country a plus

Just 80 miles east of Memphis and 120 miles west of Nashville

Business-friendly tax structure and incentive packages available

Industries include Advanced Food Processing, Automotive, Customer Care Centers and Logistics strong transportation network

Extensive access to rail transportation, intermodal facilities and 2nd largest inland water port, the International Port of Memphis

Major Distribution Centers include Kirkland’s, Perseus Distribution and Kellogg.

During a time where tight capacities in the supply chain don’t appear to be going away, getting closer to your customer with a hub and spoke model can drive efficiencies and help organizations overcome their logistical challenges.

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