© 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
A guide to successful internal auditing
Innovation
05/09/2019A guide to successful internal auditing

Whatever your industry, seeking out continuous improvement is vital to your business’ success. One of the most effective ways to do this is to appoint an internal auditor within your staff, or to hire a third-party auditor. Auditing allows for a fresh perspe

Read Full PostRead - Eye Icon
India’s Internet of Things (IoT) Market to Grow
Strategy
25/09/2015India’s Internet of Things (IoT) Market to Grow

According to a recently released TechSci Research report, “India Internet of Things (IoT) Market Opportunities & Forecast, 2020”, the IoT market in India is projected to grow at a CAGR more than 28% during 2015 - 2020.

Read Full PostRead - Eye Icon
Cruz Marcelo & Tenefrancia
Finance
31/08/2016Cruz Marcelo & Tenefrancia

Cruz Marcelo & Tenefrancia is a full-service firm with proven expertise in different practice areas such as corporate and commercial law, intellectual property, litigation and dispute resolution, to name just a few.

Read Full PostRead - Eye Icon
New product Increases Engagement In Games
Finance
06/08/2015New product Increases Engagement In Games

Mobile Engagement Company First to Unite the Power of Predictive Analytics and Mobile Messaging to Target Key Player Groups, Generating Impressive Results Including 11% Decrease in Churn, 18% Increase in Number of Sessions and 50% Increase in Revenue.

Read Full PostRead - Eye Icon
Lean Manufacturing: How to Reduce Waste and Improve Efficiency
Innovation
24/09/2026Lean Manufacturing: How to Reduce Waste and Improve Efficiency

Rising input costs and tight labor markets have made waste reduction an operations priority. Plant leaders need a dependable way to find waste, improve flow, and measure gains without disrupting delivery. The lean manufacturing fundamentals below follow that o

Read Full PostRead - Eye Icon
AI December 2016
Innovation
21/12/2016AI December 2016

AI December offers a wide range of outstanding content, the latest news on M&A deals, and celebrates many cutting-edge financial and law firms across the globe.

Read Full PostRead - Eye Icon
How to Grow Your Business in 2022: Best Strategies to Use
News
30/06/2022How to Grow Your Business in 2022: Best Strategies to Use

The business development life cycle is a five-stage process: launch, growth, shake-out, maturity, and decline. When a company comes to the maturity stage, there are only two options left: reorganize the business and move forward with it, or finish its lifecycl

Read Full PostRead - Eye Icon
Autonomous Technology Can Mitigate the Business Impact of the Coronavirus
Innovation
12/03/2020Autonomous Technology Can Mitigate the Business Impact of the Coronavirus

The coronavirus has exposed the soft underbelly of critical infrastructure and industrial sites worldwide – workforce availability. As more and more companies implement business continuity plans to deal with the outbreak, fewer and fewer employees are able t

Read Full PostRead - Eye Icon
Zurich Insurance Responds  to International Demand  for Comprehensive Cyber Policy
Finance
08/04/2015Zurich Insurance Responds to International Demand for Comprehensive Cyber Policy

Zurich have launched their ‘Security and Privacy’ policy and ‘DigitalResolve’



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