Question 3: The Hub & Spoke model is used in the context of multi-location sourcing wherein a central consolidator called

the Hub provides a single face to the customer while seamless extensions called Spokes are leveraged to provide the services, distributed across multiple locations. Data needed for management and further expansion: 1) Incentives provided by various local governments to promote the industry 2) Tax regulations 3) Demand 4) Availability of labor 5) Ability of countries to assimilate and replicate the technology know-how 6) Brand presence Solution procedure: Hub can be the firms HQ location, which shall take on management responsibilities including those of capabilities development, customer management, regulatory compliance, uniform standards of delivery, and manpower management. Whereas Spoke can be a delivery center that can be scaled up or down depending upon business requirements. Some companies may also choose to leverage near shore Spokes as base locations for business development. The firm should adapt and standardize operations across locations, invest in technology and ensure compliance with global security and regulatory standards. It provides flexibility in service delivery in a way that vendors can scale up or down operations based on client requirements The model also helps organizations gain business insights by being close to the customer Delivering projects for a client from a large number of globally distributed locations allows vendors to de-risk operations and utilize the benefits of a skilled regional labor pool Thus, a good mix of locations for service delivery ensures a better quality of service at lower costs. (generally for distribution-intensive firms) these are the few ways to meet demand shocks: Cost structure can be changed to meet sudden change in demand. Also since the routes are less as compared to point-to-point model, it shall be easier to fill demand-supply gap. Excess capacity can be stored at the hub for demand shocks. Since entire information passes through the hub, it can have real-time information on forecasts, current and future production schedules, order commitments etc. and thus demand shock at any location can be timely dealt with. (Use of technology)