Origin Consolidation vs. Hub and Spoke
origin consolidation
vs hub and spoke distribution
When shipping LTL freight, it is crucial to understand the distribution model of each carrier and how it impacts various factors of LTL shipping. Two of the most common models are Origin Consolidation and Hub and Spoke. The below details will help you understand which model is right for you:
Origin Consolidation
The typical journey of an Origin Consolidation shipment follows the below steps:
- Local driver picks up shipment
- Freight is consolidated at local service center until trailer is full
- Freight is dispatched and remains on same truck throughout journey
- Freight arrives at destination service center
- Local driver makes delivery to consignee
Some perks of the Origin Consolidation method include less handling, minimal transfers and reduced possibility of claims. Origin Consolidation also takes a more direct route, thus reducing emissions and miles driven. For companies that are focused on reducing their carbon footprint, Origin Consolidation is a simple change that will have a large impact on the environment.
Hub and Spoke
Shipments that go through Hub and Spoke model travel a slightly different journey:
- Local driver picks up freight
- Shipment is brought to nearest “hub”
- Freight is loaded onto trailer headed towards next “spoke” of network
- Process of transfer is repeated until shipment reaches delivery terminal
- Local driver makes delivery to consignee
Perks of the traditional hub and spoke model include moving on a regular freight schedule.
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