The hub-and-spoke model is a centralized distribution system that is a cornerstone of modern logistics. It is designed around a central sorting facility, or "hub," with routes, or "spokes," like those of a bicycle wheel, connecting to various destinations.

Instead of point-to-point direct routes, all shipments are routed through the central hub for consolidation and redistribution. This model, perfected initially by the airline industry, significantly boosts efficiency and network optimization by reducing costs, minimizing idle capacity, and enabling a more scalable and reliable supply chain.

(Figure on the right: Comparison of point-to-point (top) and hub-and-spoke (bottom) transit networks by CMG Lee. Source: Wikipedia)

See also: Japan's Logistics Crisis