Hub & Spoke vs Point-To-Point, Which Is Better For Roadways Delivery?

From the financial year 2020 through 2025, The Economic Times reported that the road logistics market in India was projected to expand at a compound annual growth rate of 8%, reaching 330 billion US dollars, as per Statista. The rapid rise of the eCommerce industry and the expansion of the retail sales market, among many other variables, will be the driving forces behind this growth.

However, roadways are highly unpredictable modes of transportation which may and may not be available under certain circumstances. Air, sea and land routes often get affected by weather conditions, man-made disasters, or military conflicts between countries. Roadways, in particular, are the most busiest and congested routes for delivery with poor infrastructure and therefore demand a distribution model which can effectively facilitate last-mile deliveries.

Since last-mile deliveries are often the most complicated and time-consuming part of logistics, deciding on a suitable distribution model for transportation is always a challenge. Hub and spoke model has its pros and the point-to-point model has its value in today’s logistics landscape.

To get clarity over both types of distribution models, it is important to understand the difference between the two and their advantages and disadvantages. Stay until the end of this blog title to get a better understanding of the Hub-spoke and point-to-point model of transportation.

Difference Between Hub and Spoke & Point-to-Point Model in Logistics

A hub and spoke logistics system is centralised and integrated, and its primary goal is to lower transportation costs while speeding up transit procedures. It can be compared to the design of a bicycle wheel as a centralised system for warehousing and shipping. Different spokes on the wheel indicate the direction of delivery, with the hub representing the distribution centre.

Point-to-point logistics is the seamless transportation of a shipment from its point of origin to its final destination. Even if the path is not straight, a point-to-point network connects a group of places directly without interfering with services (such as pick-up or drop-off).

Pros and Cons of Hub and Spoke Distribution Model in Logistics


  1. Refined and simplified shipping procedures

It is simpler to schedule dispatch and manage last-mile delivery operations when all goods are picked up from a single hub. Managers of logistics can assign tasks and easily keep track of them all.

  1. Increased output

Considering the traffic, weather, and delivery time restrictions, it is undoubtedly stressful for the couriers to pick up items from several hubs or distribution locations. The hub and spoke delivery system enables delivery personnel to pick up goods from a single location and distribute it to a number of locations. This cuts down on driving time and boosts output.

  1. Automated planning of routes

Planning delivery routes efficiently is made easier by the hub and spoke design. Logistics managers can benefit from digital route planning and optimization if they use last-mile delivery software and adhere to this kind of strategy.

  1. Quicker delivery

Choosing which order to deliver first or which customer’s location to visit first is a headache that auto-generated delivery routes eliminate. On-time delivery streamlines the delivery process and increases customer satisfaction.

  1. Less expensive logistics

Since everything is managed from one location and there is no need to pay multiple professionals at various distribution hubs, the hub and spoke model is cost-effective. Additionally, all of the transportation of the goods is done from one location, saving time and money on fuel. The price of managing inventories is also decreased.


  1. Having to shift inventory between multiple sites makes inventory more expensive, which is the hub and spoke system’s major drawback.
  1. Customer service is negatively impacted by fragmentation. Customers in one location might get their goods faster than customers in another location, for instance.
  1. Customers in other areas won’t be able to purchase specific products if they are only offered in one location, which makes it difficult to promote certain products.
  1. Slower reaction times – It could take longer to respond to customer needs and ship products because of the distance between the spokes and the hub.

Pros and Cons of Point-to-Point Distribution Model in Logistics


  1. Quicker transit times

 The point-to-point approach includes travelling continuously to your drop-off location. There won’t be any simultaneous deliveries, stops, or route changes made by your drivers.

  1. Less damage is done by delays

In this distribution model, there is only one delivery that is impacted by delays. Unlike a hub-and-spoke model, where a delay at the central hub could affect many deliveries that are all waiting to leave in the same vehicle at the same time.

In a point-to-point distribution model, each vehicle is functioning autonomously, which improves its ability to address any problems quickly. The model is hence less vulnerable to delays between locations.


The point-to-point distribution model has lesser efficiency and higher costs as its two key downsides.

  1. Although it might be quick, it isn’t as effective. And if you own a transportation company, you are aware of how crucial efficiency is to a profitable enterprise. More of your drivers must be on the road at once if you use the point-to-point distribution approach.
  1. It costs more money. More costs are typically incurred when there are more drivers on the road at once, including labour, fuel, route planning, car insurance, and maintenance.


Given the advantages and disadvantages of both types of distribution models discussed above, both hold their significance in different ways. While the hub and spoke model is widely accepted as an economical model of distribution, the point-to-point model is a more decentralized way of distribution. The transportation business, therefore, needs to compare both models and choose wisely as per their business needs.

New-age logistics aggregators such as NimbusPost openly embrace Hub and spoke model due to its efficiency and cost-effectiveness, while offering AI-powered logistics solutions to eCommerce businesses. The company provides domestic and international courier services at affordable rates, along with smart warehousing and fulfilment services.

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