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Paul JN
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Posted - 2008.12.15 17:13:00 -
[1]
I am thinking up a good system for multi region distribution. Currently my goal is to be able to get goods to anywhere in Gallente or Minmatar high sec within 24 hours. I know others do more.. but i want to start with just half and then expand.
I am aware that lots of people simply take their goods from HQ to customer.. however with large volumes this wouldn't be viable.
The current idea is to have a regular supply of common purchases going from main HQ to each regional HQ (from A to B) then to have each regional HQ deliver to customer (B to C).
Each regional HQ would have someone responsible.. and would be in charge of ordering more stock through when needed.
Thoughts? I know it probably needs changes.
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SencneS
Amarr Rebellion Against big Irreversible Dinks
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Posted - 2008.12.15 17:27:00 -
[2]
Might be easier to move your HQ to a more central location. Take your destinations and mark down what the travel route from one to the other is. Then look for a HQ along that route. In empire two locations are closer then you think.
If you're talking very large loads in which a freighter has to be used, then you may want to consider moving very close to one of your destinations, preferably the larger one. This will cut down on your logistics for one of the two. That way you're saving costs by only using couriers for one location.
Amarr for Life |

Kazami Kozura
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Posted - 2008.12.15 17:30:00 -
[3]
I don'think many ppl in highsec would pay for delivery. And supply to lowsec is kind of silly, if "they" know you are coming to deliver an order. And if you are killed, they won't pay, and your loss is doubled.
Oh forget that, its only highsec, so my opinion is, that you won't make much profit/hr...
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Callista Omenswarm
Astronautical Engineering
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Posted - 2008.12.15 17:55:00 -
[4]
I think it has got legs, the crux will be your organisation and communication skills as well as finding production corps and haulers.
Speaking of which, if you get this off the ground, drop me an eve-mail, AE might be able to help out with providing some of those goods or moving them around.
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Damien Jax
Industrial Research College Ltd
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Posted - 2008.12.15 18:23:00 -
[5]
Are you planning to make these goods and ship them, or are you planning to do courier type contracts and move things for others?
If you're planning to distribute over multiple regions, I'd take an approach similar to FedEx. Have your main HQ where you get all of your goods somewhat centrally located among the regions you serve. In each region, designate one system as your regional hub that distributes to that region only.
Let's say a customer wants to ship with you (assuming you're doing a courier type service). The customer can A.) Drop it off at one of your hubs or B.) pay a little extra for someone to come and pick it up.
Each regional hub would have a courier. This courier would only travel to two different places: within his assigned region and back and forth from the main HQ. The courier would travel within the region to pick up items from customers and bring them back to the regional hub. He would then make a trip from the regional hub to the main HQ hub to deliver the items.
If there's items in the main HQ hub that'd designated to be delivered to his region, he'd then pick them up and haul them back on his return trip. If there isn't anything, he should wait until someone in his region places an order (to cut down on unecessary trips).
The items that were delivered at the main HQ hub would then be picked up by the destination regional hub and delivered to the regional hub. There, it can either be put for pick up by the customer or delivered to the specific system the customer wants.
Of course, this may all be a little more work involved than necessary unless you have a steady daily volume that constitutes not just hauling from point A to B without going through hubs. You may also want to check out some logistics corps listed in the Sell Order forum, they may have something similar set up.
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Paul JN
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Posted - 2008.12.15 20:42:00 -
[6]
Thanks for the replys
Well i was planning it simply for my own business.. not as a courier service. Although thats a very interesting opportunity i hadn't exactly thought about. i wasn't planning on charging for it either.. the area of products i'm selling most of the forum shops offer free delivery anywhere in highsec.. (over a certain amount purchased) which is hard to contend with.
However contending with public courier contracts in high sec makes it impossible.. i use public courier contracts alot.. and they are always completed within 24 hours..
To be a good prospect i'd have to specialize in delivery to low sec.. and well i'm not going to do that.
I have guys in my corp that would be able to do this.. however i'd have to do another recruitment push to just make sure i had enough guys on 24/7.
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Damien Jax
Industrial Research College Ltd
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Posted - 2008.12.15 20:58:00 -
[7]
So you're planning to buy/make stuff in one location and seed markets in another location? That'd be easy to do if you set up the hub system as well and had enough guys to haul for you to different parts of empire.
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Sun Clausewitz
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Posted - 2008.12.16 00:56:00 -
[8]
You are doing a hub and spoke system... ala your standard LTL carrier or as someone mentioned earlier FedEx as a good example.
Setup your Hubs and use your frieghters to go between the hubs and your local indy's to make the local deliveries to and from the hubs.
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Brock Nelson
Caldari Flux Technologies Inc
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Posted - 2008.12.16 03:20:00 -
[9]
Hub and Spoke model will not work in this game. One reason is this: Most other freighter service is already offering direct delivery. Hub and Spoke model is unfeasible due to lack of demand along with the need for capital to purchase several freighters, transport and industrial ships.
10% for Returning Customers |

Callista Omenswarm
Astronautical Engineering
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Posted - 2008.12.16 04:22:00 -
[10]
Sure, but you've still got to wait for those guys to show up and they charge a tiny amount even for half, quater or less loads.
Why not, if you're getting into haulage, fire up a hub and spoke system and do it right, making sure you maximise the efficiency of your freighters by reducing their jumps and filling their holds.
The only issue here are the regular gate ganks that take out freighters along the major trade routes (mmm Niarja), which could cause problems if you start taking heavily loaded freighters through them.
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Brock Nelson
Caldari Flux Technologies Inc
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Posted - 2008.12.16 04:34:00 -
[11]
Edited by: Brock Nelson on 16/12/2008 04:35:22 Waiting for the guys to show up is better than waiting for your freighter to return empty to the main hub (FedEx's Memphis hub if you will). You're going to pay freighter service for one way, not two way trip. I used to work FedEx and I can tell you that almost no plane returns to Memphis empty and if it did, its usually due to circumstances beyond their control.
And you've mentioned that there are gate gankers, that's another problem solved by contracting out the hauling by insuring it (collaterals).
Fedex customers can insure their freight and when they lose it, Fedex pays for it out of their pocket. If OP is FedEx in the game, he's going to lose more money through freighter starting 800 million plus whatever was in the freighter.
Look it at this way, you contract the hauling out, you're out-sourcing your liabilities while doing the hauling around yourself, you've got liabilities that can easily kill the business.
10% for Returning Customers |

Brock Nelson
Caldari Flux Technologies Inc
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Posted - 2008.12.16 04:39:00 -
[12]
OP shouldn't be looking at FedEx's hub and spoke model but rather Walmart's hub and spoke model (retail version instead of freight transportation version). Granted its similar but I know there's a huge differences that ensures that Walmart is not losing money on trucks returning to their distribution centre.
10% for Returning Customers |

Cheopis
Amarr One Stop Mining Shop One Stop Research
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Posted - 2008.12.16 10:55:00 -
[13]
Originally by: Brock Nelson OP shouldn't be looking at FedEx's hub and spoke model but rather Walmart's hub and spoke model (retail version instead of freight transportation version). Granted its similar but I know there's a huge differences that ensures that Walmart is not losing money on trucks returning to their distribution centre.
Eh, the internal workings of Fedex are probably almost identical to most other large scale distribution networks. Never let a vehicle travel empty if you can possibly help it. If you can't help it, use contractors, and only pay them one way, let them find their own return load.
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Damien Jax
Industrial Research College Ltd
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Posted - 2008.12.16 14:10:00 -
[14]
As others have said, a fedex model of hub and spoke could work in the game if there was sufficient demand so that each trip a freighter made, they'd be hauling stuff. If a freighter goes from a spoke to the hub, it needs to go back to the spoke with something or else it needs to wait at the hub until it gets something.
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