Just-in-time shipments make all the difference in the automotive industry. Yet the speed of shipments must be balanced with affordability.
To deliver products in the most cost-effective and timely means possible, forward-thinking logistics companies are embracing hub-and-spoke models, where connections are arranged like a wheel. Freight traffic moves along spokes connected to a central hub. This efficiently moves products out of strategically located distribution centers and shortens travel time.
As an industry leader, Penske Logistics puts its own hub-and-spoke model into action for customers. Penske experts optimize the model to help you to speed up deliveries, increase efficiency, reduce costs and keep products moving.
As part of the hub-and-spoke model, hubs are positioned no more than 300 miles apart from one another. Here’s how it works:
Driver A leaves from his origin hub and meets Driver B at a switching point. They then exchange trailers. And while Driver B continues to the next switching point, Driver A heads back to his originating hub. This sequence of events keeps products in continuous motion and allows drivers to return home each night.
The hub-and-spoke model creates numerous benefits, including:
Just-in-time doesn’t have to mean high costs. By partnering with Penske and leveraging our hub-and-spoke system, you can strategically use your transportation resources and steer a course toward efficiency.