Hub and Spoke
A distribution network design in which goods flow from a central hub outward to regional spokes rather than point-to-point.
Full definition
Hub and spoke is a network topology where a central warehouse (the hub) feeds multiple smaller depots or distributors (the spokes). Instead of the brand shipping directly to every distributor (point-to-point), it consolidates volume to a few regional hubs and the hubs handle onward distribution. This cuts long-haul cost dramatically and improves reliability.
In Indian FMCG, a typical hub-and-spoke looks like: factory → C&F agent (hub) → distributors (spokes). For national brands with multi-state reach, there may be two layers, primary hub for the region, secondary hubs per state.
Hub-and-spoke also enables tighter fill rates because the hub holds a buffer that distributors can draw on for emergency top-ups, and distribution tracking gives visibility across the entire tiered network.
Real-world example
Nestle India ships from its Moga plant to a regional hub in Delhi, which then fans out to distributors across Punjab, Haryana, and Western UP, classic hub and spoke.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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