A company uses transit gateways to route traffic between the company's VPCs.

Using a Prefix List for Route Management: Acustomer-managed prefix listallows you to group multiple CIDR ranges into a single logical entity. By referencing the prefix list in VPC route tables, you can simplify route management. This eliminates the need to manually add individual CIDR ranges to each VPC route table.

Operational Efficiency: When a new VPC is added, its CIDR range can be added to the prefix list, and all route tables referencing the prefix list will automatically include the new CIDR. This reduces operational overhead compared to manually updating each route table.

Flexibility: The prefix list approach is highly scalable and supports the company’s need to add many new VPCs in the future.