A Hub refers to a central location or facility strategically positioned to efficiently handle and distribute freight. Hubs play a crucial role in the logistics and supply chain ecosystem by acting as key points of consolidation, sorting, and transfer for shipments, facilitating smooth and cost-effective transportation of goods between various origins and destinations.
Hubs are part of a greater strategy referred to as hub and spoke logistics. This strategy can be scaled down to a local level when referring to centralized suppliers who routinely reach out to local clients.
It can also work on a nationwide scale. Large companies set up supersized warehouses in strategic, centralized locations within the United States and are able to act as a central distributor for significantly more area.
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