If you are a regular reader of our blog, then you are comfortable with terms like EDI, EC, Logistics, Supply Chain and Technology. Let’s dig a little bit deeper and discuss HUBS and SPOKES.
A HUB is just one type of EDI customer. Hubs are characterized by high volume, lots of partners, high availability and high accuracy. The concept of the “Hub” is simple. These are the companies who reach out to their trading partners and request those partners to trade electronically. Let’s characterize the three types of EDI customers:
(2) Spokes (low turnover of trading partners but higher technical requirements)
(3) Ecommerce Service Providers (ECSB) (a “hybrid” with high turnover rate, deal with all implementation guides, and amount to a “Hub of Spokes”).
What is wrong with the current approach to EDI implementation? We need a new concept. Everybody wants to be a “Hub” not a “Spoke”, because that is where the money is made. That is also why new EDI implementations have stagnated. Our answer is to turn “Spokes” into “Hubs”. Currently, the “Hub” realizes benefits; the “Spoke” does not. Why can’t a Spoke become a Hub and trade electronically with lower-tier suppliers and with their own customers? Only because traditionally they have thought it was too complicated.
A generation ago, we had about 1,000 Hubs. This number has not grown! But the number of Spokes has grown astronomically. It is time for bigger Spokes to take advantage of newer technologies and become Hubs
For answers to this question, plan to attend this presentation:
Future of EDI – The Next 20,000 Hubs
Todd Gould, CEO, Loren Data
The EDI relationship has frequently been characterized as a Hub & Spoke model, and we have seen major companies (often referred to as 800lb gorillas) dictating EDI to their vendors and suppliers. The future growth of EDI depends on the additional midmarket enterprises entering the market as the new Hubs. Learning from what worked and did not work in the past, along with leveraging the substantial EDI ecosystem will be instrumental in the success of the next growth phase in this market. Together we will explore the Technology Adoption Life-Cycle in a new perspective of how it applies to EDI, what it is to be a Hub, the challenges of being a Spoke, and a roadmap to the exciting explosive growth phase just ahead.
Where and when?
New England Electronic Commerce Users’ Group
Annual 2 Day Conference & Educational Session
Wednesday & Thursday May 11-12, 2016
A Key Speaker
EDI and The Next 20,000 Hubs
CEO, Loren Data Group
The New England Electronic Commerce Users’ Group (NEECOM), formerly the New England EDI Users’ Group (NEEDI), is a nonprofit organization established in 1990. Members are large and small organizations in a variety of industries. which include manufacturers, distributors, retailers, hospitals, insurance companies, motor carriers, universities, banks and government agencies. The common thread is an interest in EC/EDI and related technologies.
All registrations & memberships must be performed online using the website
All questions about registration should be addressed to Ira Keltz (617) 724-1832
Space Is Limited! Please Respond Before May 9, 2016.
So why do we have a donkey for the featured image ? Because I like donkeys.
Actually a Donkey is like a SPOKE. Give it « good grass » and it is happy. Never realizes if it became a HUB it could be sitting across the street in a 5-Star hotel enjoying a first class lunch !