Definition of Hub and Spoke
A hub-and-spoke model also allows transport drivers to travel shorter distances and stay in a more central area. This is because drivers can change at the hub. In a point-to-point system, there is no corporate space where drivers can easily meet and change. The star model refers to a distribution method in which a central “hub” exists. Everything comes from the hub or is sent to the hub for distribution to consumers. From the hub, goods are transported to smaller corporate sites called shelves for further processing and distribution. However, as with any business model, the hub-and-spoke approach is not perfect. There is the problem of hub congestion, which can lead to bottlenecks. If you focus too much on the central hub, you may inadvertently ignore other available resources. In the social media example, if you`re not careful about using a social media management tool that gives you absolutely everything you need, you may miss conversations or opportunities to connect with followers by not logging directly into the platform. For example, you can use project management tools to create and assign tasks in a central area. Team members automatically receive notifications and can access the hub for their own tasks. Therefore, the team members represent the shelves and the tasks are the “goods” that are distributed.
His peers remember him as a brilliant man who spoke softly and sometimes seemed a little shy. This is particularly advantageous for taxes. Offshore funds often charge different taxes on dividends and capital gains. In a hub-and-spoke structure, U.S. investors in an onshore fund would not be affected by the offshore fund`s obligations and vice versa. This structure separates all reports, fees and expenses from the fund, while allowing for greater leverage of economies of scale. In addition, hub-and-spoke structures typically include U.S. and offshore funds, creating the opportunity to market the fund globally. These structures are set up in the form of a partnership at the service of global investors. As a partnership, they can work collaboratively while allowing the registration of individual nurturing funds in the U.S.
and abroad. Almost everyone I spoke to said they were using JSwipe because they weren`t just looking for a loot call. “Hub-and-spoke.” dictionary Merriam-Webster.com, Merriam-Webster, www.merriam-webster.com/dictionary/hub-and-spoke. Retrieved 11 October 2022. The description of the star model in terms of transport and distribution is the most logical because of its origin in aviation. However, with a little creativity, it can also be applied to other types of businesses. For example, you can use the hub-and-spoke template to streamline the distribution of social media content and manage projects. It might even already be used in your industry without you realizing it has a specific name.
In the point-to-point model, transportation costs may actually be higher than in a hub-and-spoke model. This is because in a point-to-point model, more routes are created, while products can be grouped and delivered efficiently by routes defined in a star model. The smallest regional airports (the “shelves”) carry passengers to one of the largest central hub airports. From there, a connecting flight can take you to another regional airport. This is more efficient than many direct (“point-to-point”) routes from the regional airport to the regional airport. The disadvantage of this model is mainly felt by passengers, who can experience delayed flights and increased transit times when they take two different flights instead of a direct flight. She kept her eyes fixed on hers and said what followed, gently, calmly, but as if another woman was saying the words. You never cared about it – you were too proud to care; and when I told you about my guilt, you didn`t even know what I meant.
Many star funds exist on the market. BlackRock is a fund manager that uses this fund structure in a variety of star configurations. For example, they operate the Institutional Portfolio Master Treasury Strategies, which is the hub and consists of two departments, the BlackRock Select Treasury Strategies Institutional Fund and the BlackRock Treasury Strategies Institutional Fund. The funds are able to keep the operating costs of the funds relatively low compared to their competitors due to the hub-and-spoke structure. The star model has many advantages, and it is perhaps easier to understand them by comparing the star model to the model it should replace: the point-to-point model. The exact opposite of the star model, the point-to-point model, allows goods and services to go directly from point A to point B without going to a central distribution center.