Start with the promise

Before choosing a hub, define which customers need which service. Separate urgent shipments from flexible deliveries, then map origins, destinations, parcel characteristics and dispatch deadlines. A national average can conceal difficult lanes. Build a baseline that follows each shipment through collection, sorting, linehaul and delivery. This gives every proposed network change the same starting point and exposes where the current promise depends on an unusually tight connection.

Price the whole journey

A shorter delivery route may require another depot, extra handling or more frequent trunk departures. Compare total operating cost alongside service coverage and available capacity, rather than judging a facility by its rent alone. Include inventory costs when designing fulfillment locations. For a carrier sorting network, examine transfer time and load balance instead. Keep assumptions visible so finance and operations can challenge the same model.

Test the difficult day

Evaluate peak volume, a missed departure and the temporary loss of a critical facility. Ask what can be rerouted, how much spare capacity exists and which customer commitments become exposed. A fallback route is useful only if its timetable, staffing and equipment are workable. Pilot one region or service segment, compare actual performance with the baseline, and use the result to refine the wider investment decision.

The practical takeaway

Takeaway: Choose a network against explicit service requirements, total cost and credible disruption scenarios.

Sources & further reading

Industry knowledge and interpretation; carrier terms and local requirements vary.

  1. DHL Consulting — Network modelling and hub location assessment
  2. DHL Supply Chain — Transport solutions

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