Characteristics of Hub-And-Spoke Logistics Network

Goods will not be transported directly from supply point to demand point, but rather will be transported by assembly after being reorganized into hubs in a hub-and-spoke logistics network. The article compares hub-and-spoke logistics network with the air passenger network and public transport network. Firstly the article analyzes hub-and-spoke logistics network structure characteristics in demand allocation, network routing and topology methods, and points out: most hub-and-spoke logistics networks have a single-allocation form, a single optional path, as well as a complex routing system from demand point to logistics hub. Then the article analyzes the network's economic characteristics: although the network increases cost by assembling and transforming traffic flow, it maintains the balance between transport efficiency and cost. Finally, from the network design objectives, transportation costs and constrained conditions, the article puts forward that the main objective should be to minimize transportation costs, having higher requirements to cargo handling cost and consolidation time in logistics hub, at the same time we should pay attention to complex route system design from demand point to logistics hub.