What is a logistics hub? – Discover the meaning of hub in logistics

Exists a key location for transportation and distribution of goods and raw materials, in which all the operations come together. This center is presented as a coordination and synchronization engine, where commercial flows are optimized.

Meaning and definition of the logistics hub

It is a strategic center for the distribution and coordination of merchandise, services and items related to the supply chain. It is a central point where there are different transport routesto carry out operations of storage, handling and classification of products.

Its location is an important factor for it to work correctly. That’s why usually have a strategic geographic locationsuch as transport terminals, ports, airports and even major highway intersections.

This, with the purpose of minimize logistics costs and facilitate access to different markets. These areas have various spaces, such as warehouses, buildings where administrative offices and connection centers are located.

Usually a logistics hub does not belong to a company or company, but it brings together several of these, which provide their services in logistics. This grouping allows them to take advantage of all the advantages and solve the inconveniences that may appear during the service.

Although, if they exist some hubs that are uniquely owned by a single companyas is the case of those companies that have a great demand for products.

Their importance lies in their ability to optimize and speed up the flow of goods. Since having the activities grouped in one place, delivery times are reducedminimize inventory levels and improve overall supply chain efficiency.

What are the characteristics of the logistics hub?

  • Strategic location: They are located in transport connection centers, ports, airports, etc.
  • Specialized infrastructure: In this way, they are able to satisfy the needs of storage, handling and distribution of merchandise.
  • Concentration of activities in a single site: where the temporary or long-term storage, labeling, packaging and classification of products will take place, until their final distribution.
  • Use of advanced technologies and software: for the management and traceability of the merchandise, in addition to other inventory systems and information in real time.
  • Efficiency and optimization of logistics: By concretizing the activities of the provision of this service in a single part, it seeks to reduce transportation costs and improve delivery times.
  • It is a system that promotes energy saving: It makes the costs cheaper.

How does a logistics hub work?

Start with the receipt of merchandise from various suppliers, these are received and verified at the hub, where they are registered and assigned a point in the warehouse. Once the merchandise is in the hub, a classification and consolidation process is carried out, that is, they are grouped according to their final destination or their route, which will depend on which is more efficient for the company.

Regarding storage, this it is an essential process, because it must be guarded in the most efficient and organized way possible. Whether in conventional warehouses, automated racks or other more specialized storage systems.

It is usual to find this merchandise separated and organized through a Palletalso known as a pallet or palette, is a wooden, plastic or metal structure that facilitates efficient handling and storage, supports the products during their handling and distribution

These pallets are designed to be used by material handling equipment, such as forklifts or forklifts, their dimensions are 120 cm x 80 cm, and other times 120 cm x 100 cm.

Once the goods are classified and stored, the distribution process will begin, which depends on the nature of the products and the customer’s requirements. In this case, different means of transport can be used, such as trucks, ships, railways or planes, always taking into account the most efficient route, delivery times and costs.

The logistics hub too is in charge of managing the customs formalitiesand obtain the necessary permits, making sure that shipments comply with all regulations and standards.

What is the classification of the logistics hub?

There are various criteria to qualify the logistics hub. On one side, it can be transport, that is, that it is in charge only of the interconnection between the different methods of transport, such as land parcels. On the other hand, they can also be maritime or air.

Also can be dedicated solely to the distribution towards their final destination, and others that are only in charge of labeling, packaging, repair and personalization of products.

There are some that are in charge of those processes at the regional, national level, and others at the international level. Next we will define two of the most important.

air logistics hub

the airway It is one of the most efficient and fastest connection networks in the area of ​​logistics. The air logistics hub is a strategic and crucial center. This is where flights and international transport routes converge, carrying out handling, storage and distribution operations for cargo arriving and departing by air.

It has airport infrastructure, cargo capacity and ease of storage, in addition to having advanced knowledge in the customs field.

It is in charge of a series of activities, in the first place, the reception of loads from various flightswhich, secondly, will be downloaded, classified and verified, to finally be stored temporarily.

The air logistics hub is also in charge of scheduling and planning the flights that will transport the cargo, that is, managing arrival and departure times, routes and proper synchronization.

maritime logistics hub

They are in charge of the chain of largest supplies globallythese centers coordinate the distribution of merchandise through the use of maritime routes, playing a key role in world trade.

It is strategically located in a port or maritime terminal of great importance and flow. It works as a connection center where multiple shipping routes meet, since its strategic location is the key to its success.

The parcel will arrive in cargo ships, then it goes through a download and verification process, and finally, proper handling and storage is carried out. Once the cargo is there, its consolidation begins, in order to take advantage of the storage space and maximize shipments.

The hub is in charge of planning the schedules of the ships for their best operation, as well as they must have good technology and an information system, in this way an adequate follow-up would be carried out.

Leave a Reply

Your email address will not be published. Required fields are marked *