The term “hub and spoke” in this context refers to the structure of manufacturing companies and the way in which orders are distributed and processed within that structure. If, for example, a pharmaceutical company orders a packaging solution from its supplier, it is initially received at a central location. However, this is usually not the place where the actual order is processed, but rather a higher-level platform that coordinates all further work steps. This is because packaging manufacturers – like most other companies – also have complex internal structures that transcend location and national borders.
By organising different manufacturing plants like spokes around a central hub, the manufacturer can quickly determine the best production strategy for each job and identify appropriate
capacity. In the next step, they are commissioned with partial or complete processing of the order. Even external resources such as subcontractors can be integrated into this concept.
Finally, the manufactured products are consolidated at another central location, for example a consignment warehouse, and prepared for shipment to the customer.
Advantages for pharmacists:
The advantage of a hub-and-spoke architecture is that information pathways and responsibilities are clearly defined and capacities within the corporate network are transparent at all times. Packaging manufacturers can thus process their orders particularly efficiently and quickly – this shortens lead times and increases delivery reliability. Functioning data exchange
not only between customer and supplier, but also within the company structure is the most important prerequisite for this.