© 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
Top 7 Services Which Will Help Your Marketing Team Flourish in 2023
News
27/02/2023Top 7 Services Which Will Help Your Marketing Team Flourish in 2023

Are you concerned about expanding your company because you’ve put quite some effort into it? Well, if you are, you’re not making a wrong decision in doing so.

Read Full PostRead - Eye Icon
7 Business Benefits of Hiring Managed IT Services
News
02/11/20217 Business Benefits of Hiring Managed IT Services

Besides accounting, one of the most outsourced jobs is managed information technology (IT) services. And for a good reason. Hiring managed IT services involves hiring third-party specialists to take charge of a business’ needs. As such, entities can focus on

Read Full PostRead - Eye Icon
Strategic Educational Philanthropy of the Yael Foundation and the Role of Uri Poliavich
Strategy
05/10/2026Strategic Educational Philanthropy of the Yael Foundation and the Role of Uri Poliavich

Uri Poliavich co-founded the Yael Foundation in 2020 with the goal of building a stable system of educational support. The organization invests in quality education and the strengthening of cultural identity worldwide. The Yael Foundation headquarters is locat

Read Full PostRead - Eye Icon
DLA Piper Advise Olayan’s and Mandarin Oriental’s Acquirers of Ritz Hotel (€130 million)
Finance
16/07/2015DLA Piper Advise Olayan’s and Mandarin Oriental’s Acquirers of Ritz Hotel (€130 million)

DLA Piper Advise Olayan's and Mandarin Oriental's Acquirers of Ritz Hotel (€130 million)

Read Full PostRead - Eye Icon
Benefits of Using Workforce Management Software
Technology
20/04/2026Benefits of Using Workforce Management Software

Workforce management continues to evolve from being a mere strategy into an essential business function for organisations aiming for more productivity and efficiency. Implementing workforce management software helps ease processes, increase employee satisfacti

Read Full PostRead - Eye Icon
61% of US Companies Plan to Acquire in the Next Year
M&A
13/04/201561% of US Companies Plan to Acquire in the Next Year

More than three-fifths of US companies (61%) are planning deals in the next 12 months – the highest number ever recorded by EY's semiannual Global Capital Confidence Barometer.

Read Full PostRead - Eye Icon
Making Mobile Devices More Magnificent
Innovation
05/01/2021Making Mobile Devices More Magnificent

Resonant is changing the way that radio frequency (RF) filters are designed and, in the process, has disrupted and transformed the market and supply chain for RF front-ends (RFFE). The company has used these tools to develop XBAR, a new resonator technology th

Read Full PostRead - Eye Icon
Real-Time Phone Validation: The Secret Weapon Behind Higher Conversions and Cleaner CRM Data
Technology
08/12/2025Real-Time Phone Validation: The Secret Weapon Behind Higher Conversions and Cleaner CRM Data

A strong customer relationship management (CRM) system sits at the heart of every successful business. For a CRM to perform effectively, its data must be accurate, up-to-date, and free from errors. But as companies scale, keeping CRM records clean becomes incr

Read Full PostRead - Eye Icon
Where Next for Euro Government Bonds?
Finance
20/02/2015Where Next for Euro Government Bonds?

The ECB published its first-ever minutes of a policy meeting, revealing plans to expand its Quantitative Easing (QE) programme.



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