Hub and Spoke Networks in Truckload Trucking: Sensitivity Analysis and Extended

摘要

In the report, the authors discuss the major configuration issues and operationalconcerns associated with the use of hub-and-spoke transportation networks in truckload trucking in North America. The concept of hub-and-spoke (H&S) networks is not new to the transportation industry. For many years, the airline industry and less-than-truckload (LTL) trucking companies have made use of such networks. In general terms, a H&S network involves a series of nodes (hubs), connected by arcs (spokes) that represent viable transportation alternatives between two nodes. The idea of using H&S networks in truckload trucking is much newer and less proven. Unlike airlines or LTL operations, truckload truckers do not need to consolidate their loads. Arguably, this takes away a major hubbing incentive. The implementation of H&S networks in this environment, therefore, requires different motivating circumstances. This motivation comes from the desire to better serve customer needs while reducing excessive tour lengths for individual drivers. It is theorized that tour reduction would result in lower driver turnover rates, and thus drastically reduce the cost associated with hiring and training replacemet drivers. This cost reduction could be passed on to customers, providing an even greater competitive edge to those companies implementing successful strategies.