Regional hubs: distribution centres for efficient last-mile delivery 

A regional hub is a strategically located distribution point that receives goods from a central warehouse, sorts them and forwards them for local delivery to end customers. Regional hubs form the link between long-distance transport and the last mile. The hub network directly determines the speed, reliability and sustainability of every delivery. 

Hub versus warehouse: what is the difference? 

Understanding the distinction between a hub and a warehouse is fundamental to grasping the logistics chain. A distribution hub holds little or no stock; its primary function is sorting and forwarding. This distinguishes a hub from a warehouse, where storage is the core activity. Hubs operate in two configurations: 

• Spoke-hub: the hub receives goods from a single central depot and distributes them across multiple delivery routes. 
• Cross-dock hubs: the hub receives goods from multiple incoming lorries and transfers them directly onto outgoing delivery vans without any intermediate storage. 

Why do hubs reduce the cost of last-mile delivery?

The last mile accounts for 41 to 53 per cent of total transport costs. This makes it the most expensive link in the chain, and also the link where the greatest savings can be made. Regional hubs reduce these costs through three mechanisms: 

• Consolidation: multiple shipments for the same region are bundled at a single depot and delivered together on a single route. 
• Range optimisation: a hub close to the city reduces the daily distance travelled by electric delivery vans, ensuring the vehicles’ range is sufficient for the entire delivery round. 
• Flexible intake capacity: hubs receive goods both during the day and at night, enabling them to cope with peaks in e-commerce volumes without delays. 

Hub location criteria 

The choice of location for a distribution hub determines the efficiency of the entire delivery network. A poorly located hub negates many of the benefits offered by the hub model. Five location criteria are decisive: 

• Proximity to the ring road: no more than 10 to 15 km from the city centre 
• Accessibility by lorry: direct access to a main road or ring road 
• Charging infrastructure: three-phase connection and space for DC fast chargers 
• Transhipment capacity: at least 1,500 m² of sorting floor space for efficient cross-docking 
• Accessibility by public transport for staff 

VPD’s hub network 

VPD operates a growing network of regional hubs in Belgium. The current locations are: 

• Brussels, with one hub on the northern outskirts and one on the southern outskirts of Brussels 
• Antwerp 
• Ghent 
• Liège 
• Charleroi 

Each hub is strategically located on the edge of a city centre, just outside the LEZ perimeter. Large lorries unload at the hub. Electric vehicles then travel from there to cover the last mile into the city. This keeps diesel vehicles out of the low-emission zones and allows VPD to maximise the use of its zero-emission fleet. 

Discover how VPD’s hub network makes your deliveries faster and more sustainable.