© Copyright Acquisition International 2026 - All Rights Reserved.

Article Image - Answering All the Right Questions for Distribution Network Optimization
Posted 12th May 2016

Answering All the Right Questions for Distribution Network Optimization

In today’s rapidly changing distribution environment, it’s critical for businesses to look inside and outside the box, in order to optimize the entire network as well as warehouse labor and capacity.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Answering All the Right Questions for Distribution Network Optimization
Image

Answering All the Right Questions for Distribution Network Optimization

In today’s rapidly changing distribution environment, it’s critical for businesses to look inside and outside the box, in order to optimize the entire network as well as warehouse labor and capacity. We got in touch with KOM International, a supply chain consultancy, to find out more.

Allan Kohl, President of KOM International, warns that “If you don’t know where you’re going, any road will get you there” and distribution executives must ask the critical questions up front and then drill into detailed operational data to get the right answers to optimize their network.

Questions should address the following areas:

Network Structure: This involves looking at locations, products, clients served, multi-state vs regional, fastslow, service levels.

Layouts and Expansions: This is with regard to timing, size, capacities, slotting efficiency, and labor productivity

Storage and Handling Systems: Looking at whether the systems are conventional, mechanized, and automated: ROI, design year.

Customer Assignment and Service Levels: Factors such as having multiple facilities; time, distance and routing need to be addressed.

Product Stocking Locations: Focusing on the regional vs national issue; vendor location, movement, and if they are store friendly.

Inbound: This involves consolidation centers, vendor transport costs, single vs multiple receiving points.

Channel and Product Flow: This is with regard to DSD vs distribution impact, long distance deliveries, seasonal flows.

Service: This involves looking at existing benchmark vs target, modified lead times/delivery days/cut off time

Procurement: This is in relation to discounts, allowances, rebates, distributor vs manufacturer sourcing. For example, a semiconductor distributor managing thousands of SKUs across multiple facilities must weigh these same procurement trade-offs to avoid stockouts on high-demand components.

“AGILE, a comprehensive modelling process developed and proven in real world network applications is the key to producing excellent and actionable results in this arena; it simultaneously addresses network design, DC design, as well as storage and materials handling system design” advises Vince Canonico, a KOM Senior Partner and logistics network specialist.

Vince states that “AGILE is uniquely effective due to its simultaneous top-down and bottom-up modeling during both acquisition phases.

– During the due diligence, we can model in the face of information gaps;

– During post-acquisition, we can implement faster than any other methods so that we begin accruing savings sooner.”

Peter Reed, Senior Partner at KOM explains that as Vice President National Engineering at Sobeys Canada, and in collaboration with Vince Canonico, “we relied on the AGILE modelling approach for all of our recent network solutions and improvements.”

Sobeys Canada is a grocery retailer comprising multiple banners including corporate and franchised supermarkets, convenience stores, food wholesale, drug stores, and gas bars, with $24BB in annual volumes across 1,500 locations, 125,000 employees, and a network of distribution centers spanning the country.

Peter goes on to explain how the Sobeys distribution network was developed through the output of AGILE’s detailed and comprehensive multi-level management decision metrics in all critical network areas to be optimized, including: demand and supply planning at the sku-vendor-day and location level; network planning at the facility, product, customer and location level; facility planning to the sizing, staffing, productivity, budgeting and capacity level; transportation planning of lanes, routes, pro forma cash flows; scenario planning with options for growth and trade-offs; financial planning with cost benefit analysis, rankings and risk factors.

Allan Kohl is President of KOM International, a global supply chain consulting firm www.komintl.com; ak@komintl.com; Tel: 514-849-4000

Peter Reed, Senior Partner, is a KOM subject matter expert managing design and implementation projects of conventional and automated systems preed@komintl.com

Vincent Canonico, Senior Partner, is a subject matter expert at KOM managing network evaluation, optimization and implementation projects vcanonico@komintl.com

Company: KOM International
Name: Allan Kohl – President
Email: ak@komintl.com
Web: www.komintl.com
Address: 300 St-Sacrement,
Suite 307, Montreal, Quebec,
Canada H2Y 1X4
Telephone: 514-849-4000

 

 

 

 

 

Categories: Innovation


You Might Also Like
Read Full PostRead - Eye Icon
5 Best Tax Firms in Oklahoma
News
29/10/20245 Best Tax Firms in Oklahoma

Hiring the best tax firm in Oklahoma is the key to navigating the state’s taxation complexities and maximizing your financial outcomes. With regulations and requirements constantly evolving, having expert guidance is essential.  If you’re look

Read Full PostRead - Eye Icon
Extraordinary Achievements
Finance
23/10/2018Extraordinary Achievements

Drawing on more than an aggregated 100 years of local investment experience in the Brazilian market, Prudent Group, through its innovative Prudent Investment Fund (PIF), offers investors a unique opportunity to move into this dynamic market. Having recently be

Read Full PostRead - Eye Icon
Brompton CEO William Butler-Adams: ‘You Need to Recruit People Better Than You’
News
26/08/2026Brompton CEO William Butler-Adams: ‘You Need to Recruit People Better Than You’

In this exclusive interview with the Inspirational Leadership Speakers Agency, William explains why humility matters in leadership, why box-ticking courses fail to develop people and how manufacturers can find the right mix of AI, robotics and skilled human wo

Read Full PostRead - Eye Icon
Out There: Reasons To Use Promotional Products In Your Marketing Strategy
News
03/01/2023Out There: Reasons To Use Promotional Products In Your Marketing Strategy

Promotional products are a great way for businesses to get their message out to potential customers. They are an important tool in any marketing strategy, as they can be used to build brand awareness, increase visibility and engage customers. From pens and mug

Read Full PostRead - Eye Icon
JLL Advise Ankkurikadun Kiinteistöt’s Purchase of Properties in Finland and Sweden
M&A
08/07/2015JLL Advise Ankkurikadun Kiinteistöt’s Purchase of Properties in Finland and Sweden

JLL Advise Ankkurikadun Kiinteistöt's Purchase of Properties in Finland and Sweden

Read Full PostRead - Eye Icon
Global Oil Price Fall Set to Impact on US Auto Industry
Finance
11/02/2015Global Oil Price Fall Set to Impact on US Auto Industry

Low oil prices will contribute to upside potential for the U.S. automotive market in the near term, according to a recent report from IHS Automotive, part of IHS, Inc

Read Full PostRead - Eye Icon
2016 Influential Business Woman Awards FAQs
Innovation
18/02/20162016 Influential Business Woman Awards FAQs

2016 Influential Business Woman Awards FAQs

Read Full PostRead - Eye Icon
9 Things You Need To Know About Franking Credits Before Investing
Finance
23/02/20239 Things You Need To Know About Franking Credits Before Investing

Franking credits are a way for investors to enjoy additional returns on certain investments. They are tax credits attached to dividends or other distributions paid by companies, which reduce the taxes an investor has to pay on their income.

Read Full PostRead - Eye Icon
Executive Education: The Secret to Staying Ahead in Leadership
Leadership
04/09/2025Executive Education: The Secret to Staying Ahead in Leadership

Becoming a top leader in the corporate world does not guarantee continued success. There are always new leaders coming up and competition never gets easier. So, the key to maintaining your success and getting better is executive education. If you are thinking



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow