The Hub-and-Spoke Distribution Model
The hub-and-spoke model revolves around delivering the most efficient and effective service.
Updated: 08/07/2025
What is the Hub-and-Spoke Model in Logistics?
The hub-and-spoke model is a type of distribution system used to make deliveries more efficient and cost-effective. The Pall-Ex hubs (Central, Northern and South Central) sit at the core of our hub-and-spoke system and act as the main sortation facilities for incoming goods, while our 120-strong membership acts as the spokes facilitating final-mile deliveries.
How Does it Work?
Our network members all operate in their own allotted postcode area, carrying out collections and deliveries on behalf of the network.
1. Collection and Consolidation
They collect freight from their customers throughout the day, organising and consolidating it at their own depot.
2. Line-Haul to the Hub
This consolidated freight is then taken to one of the Pall-Ex hubs, where it is offloaded and rearranged based on the delivery location.
3. Back to the Depot
Any freight heading for delivery in their postcode territory will be loaded onto the members’ vehicle and taken to the depot.
4. Customer Delivery
The most efficient delivery routes are then calculated and the freight loaded onto smaller vehicles for delivery to its final destination, including businesses, farms, factories and homes.
Other benefits include:
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Trackable deliveries – advanced technology means you can follow your freight’s journey through the network for peace of mind.
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Lower costs – vehicle sharing and freight consolidation makes hub-and-spoke distribution a more cost-effective delivery option.
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Easily increase capacity at peak times – our network can easily adapt to your seasonal fluctuations.
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Next-day deliveries across the country – quick turnaround times in our hubs give you efficient delivery options.
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More sustainable delivery option – by consolidating freight, our hub-and-spoke system achieves higher levels of vehicle utilisation, minimising the number of empty lorries travelling on our roads.
What is the Benefit of this System?
The hub-and-spoke distribution system is useful for businesses in a variety of different industries, particularly those sending smaller consignments of palletised goods to various locations.
When compared to traditional point-to-point deliveries, the hub-and-spoke system is much more efficient, reducing costs for the customer and minimising environmental impact.
