Hub-and-Spoke Distribution Network
TL;DR
Walmart operates a hub-and-spoke distribution network where central distribution centers receive goods from suppliers and redistribute them to stores.
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Information flows through central nodes. Distributed units communicate primarily with headquarters, rarely peer-to-peer. Vertical flow dominates with limited horizontal flow.
Business Application of Hub-and-Spoke Distribution Network
Walmart operates a hub-and-spoke distribution network where central distribution centers receive goods from suppliers and redistribute them to stores. This enables economies of scale, network optimization, and data-driven insights, but limits local adaptation and creates single points of failure.