Hubshape

Sites, catchments, lanes, cost to serve and the peak, in one model.

Every option is compared with today on cost to run, cost of change, service, miles and carbon.

One model of the network, from the factory gate to every customer.

  1. Where each site should be

    A hub's centre of gravity among the customers it serves, first unconstrained and then from a set of real candidate sites.

  2. The ground each site serves

    Each customer assigned to the site that serves it, so every catchment can be seen and redrawn.

  3. Cost to serve, customer by customer

    Each customer's landed cost per pallet built from the segments its goods really pass through, from first mile to peak space, each traced to its driver.

  4. Peak space for the weeks that need it

    Fifty-two weeks of demand run against the space each site has, so overflow is bought for those weeks instead of a bigger site all year.

Cost to serve, worked out for every customer from the flow its goods take.

Cost to serve · flow pathsLanded £ a pallet
C-215
£22£99 a pallet

Flow path · Scotland hub to C-215

£99.19

↑ site average £28.64

  • First mileOrigin to hub, full loads£6.40
  • StorageStorage days × rate per pallet£4.10
  • PickItem pick, touches × rate£7.90
  • Last mile108 mi each way, 1 pallet a drop£79.19
  • Peak spaceReserve space, peak weeks only£1.60

3.5× the site average, and 80% of it is last mile on a small drop.

Invented customers. Figures are illustrative.

Step 1 of 3: Every customer, shaded by what it costs to serve.

Landed cost per pallet runs from £22 to £99, built from the segments its goods really pass through.

Peak space sized for the weeks that need it.

Seasonality and capacity · hub storage52 weeks, indexed to the mean
0.8×1.0×1.2×1.4×JanFebMarAprMayJunJulAugSepOctNovDecSpace ceiling 1.12×Design point · P90 · 1.05×PeakOverflow, weeks 47 to 51

Peak week

Wk 49 · 1.33×

Weeks over ceiling

5 of 52

Design point

P90 · 1.05×

Space bought

5 of 52 weeks

An invented demand profile. Figures are illustrative.

Step 1 of 3: A year of demand, week by week, against the space.

Fifty-two weeks indexed to the mean week, with the space ceiling and the design point, the 90th percentile week.

Every option set against the base case, on the measures a board will ask about.

Configurations against base caseBase case signed

Base

A

B

C

Cost to run

£m a year

0.00
0.00+3.07
0.00−0.45
0.00−1.71

Cost of change

£m once

–
–
–
–

Within 2½ hours

share of volume

0%
0%−26 pts
0%+6 pts
0%+5 pts

Road miles

m a year

0.00
0.00+50%
0.00−11%
0.00−18%

Carbon

t COâ‚‚e a year

0
0+50%
0−11%
0−18%
Invented network. Figures are illustrative.Option C: £1.71m a year less to run, for £1.8m once

Step 1 of 4: The base case is today's network, costed.

It is signed off as a fair picture of last year before any option runs, so every option is measured against the same thing.

Every option is set against today on cost to run, cost of change, service, miles and carbon, and the decision stays with your board.

Start with a year of your own loads.

Talk to Libra about a Hubshape study. We will scope the data request, the measures and the first gate with you.

Talk to Libra about Hubshape

Hubshape is built and run by Libra Europe, and the model stays with your team at the end.