Hub-and-spoke network designs are used by shipping companies such as Federal Express and UPS.

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Hub-and-spoke network designs are used by shipping companies such as Federal Express and UPS. Such designs have been popular with airlines as well (Northwest, United, etc.), but a clear advantage of using them in the distribution network of a supply chain versus a direct airline flight from source to destination is that products, unlike passengers, are insensitive to how many hub stops they need to make. This makes it easier to achieve the goal of making the distribution channel more flexible and responsive to customer needs.

Hub-And-Spoke Network Designs Are Used by Shipping Companies Such as Federal