4170 Stillwater Drive, Duluth, Georgia 30096 | 678.576.0562 | carlos@cavazquez.com | cavazquez.com Hub and spoke: t ransformation for your multinational supply chain Supply chain transformations are trending, making this an ideal time to explore the hub - and - spoke supply chain network model. This intuitive approach to transformation is perfect for multinational organizations. Its straightforward design improves collaboration and efficiency across even your most far - flung locations. Supply chain transformations aren’t for the faint of heart Long after the pandemic, supply chains are still a concern for both practitioners and the public. Disruptions continue to affect markets, from marshmallows and mowers to machine tools and medical equipment. No doubt your company is dealing with these all - t oo - common disturbances. An integrated business transformation plan can help you cope with these issues. But crafting a comprehensive plan can be more than yo u want to take on. A transformation program needs to consider every side of your business. Sales plans , financial plans and strategic and tactical supply chain plans — it’s a big ask. Your supply chain team is likely viewin g the project with a wary eye. Making transformations work despite differing priorities Supply chain transformations involve multiple rounds of blueprinting, building and testing before deployment. Blueprinting focuses on core business requirements and implementing corresponding processes. The challenge lies in managing complexity due to conf licting requirements from your organization’s competing business interests. These clashes most often arise in large multinational companies with diverse priorities. Under these conditions, the back - and - forth on requirements can seem interminable. We’ve found that the hub - and - spoke network model is an effective approach to dealing with these impasses. The hub - and - spoke distribution method involves a central location. A ll requirements either begin at this hub or are received by the hub for further distribution to other company - owned facilities called “spokes.” This arrangement is flexible, so it’s easier to meet the diverging needs of different companies. 4170 Stillwater Drive, Duluth, Georgia 30096 | 678.576.0562 | carlos@cavazquez.com | cavazquez.com How the hub and spokes work together T he hub is the central team. Consisting of subject matter experts (SMEs), the hub drives conversations with the organization’s many divisions — represented by the spokes. The central team works to make sure that they properly address all the requirements brought by the spokes effectivel y. In traditional point - to - point models, the implementation team usually works with SMEs from assorted divisions within the organization, either simultaneously or in sequence. This approach can be cumbersome. Gathering all requirements from the divisions involved often consumes a lot of time and effort. The central team will have a firm grasp on your organization's overriding needs , and SM Es can know the needs of your company’s divisions. The c on ventional point - to - point model come s with a risk of overlapping and conflicting requirements. Close collaboration with the core team avoids this, addressing the requirements of each division. This working relationship speeds up the process of determining and fulfilling total network needs. Core benefits of the hub - and - spoke method: • A central team can identify and prioritize authentic needs, making sure that the most critical business requests are met. • By centralizing the requirement - gathering process, the implementation team can focus on designing and delivering solutions. These should be based on discipline best practices without the complications of internal politics. • A central team can gather business requirements in a timely fashion, enabling the implementation team to complete their work quickly. The hub and spoke in practice In a past engagement, NTT DATA’s supply chain consulting team worked with a multinational client and applied the hub - and - spoke approach to their transformation project. They had five large divisions across Asia, Europe and North and South America. The vent ure was strategically critical for the entire organization. Applying hub and spoke, and making use of its advantages, they completed the implementation on schedule. Collectively, the project team proved that the method made centralized processing and achieving business requirements possible. The hub - and - spoke method reduced back - and - forth and focused attention on potential benefits to the organization. The central tea m was an equal champion of all divisions and regions, with the goal of a deeper understanding of their shared needs and challenges. This made them even more willing to come together on a converging set of requirements and plans. 4170 Stillwater Drive, Duluth, Georgia 30096 | 678.576.0562 | carlos@cavazquez.com | cavazquez.com Contact us and learn how NTT DATA Supply Chain Consulting ’ s Integrated Demand & Supply Planning practice will help transform your supply chain organization. Employing the hub - and - spoke method will instill a collaborative mindset, clearing the way to final implementation. Our top supply chain talent, enabled by proven, leading - edge digital assets — tools, methods and content — deliver actionable insights and measurable outcomes to some of today’s largest and most complex supply chains.