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Spoke-hub Distribution Paradigm




Two industries that make use of this model are Transport and Freight .

FedEx founder Fred Smith pioneered the hub and spoke model for overnight package delivery in the mid-1970s. Smith established his company's hub at Memphis International Airport ( Memphis , Tennessee ). Soon after, other firms like UPS and Airborne had no choice but to develop their own hub and spoke model given the natural superiority of this system for speedy delivery of packages. In addition to FedEx, Delta Air Lines pioneered the hub and spoke system in the passenger transportation industry at its hub in Atlanta , Georgia to compete with Eastern Airlines .