© 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
Business Investment Company of the Year – Europe
Finance
12/07/2022Business Investment Company of the Year – Europe

Being such a prestigious investor in the world of start-up business, SalesInvest’s name contains two of the biggest driving forces behind this company. Sales – because it believes that sales are the biggest driving factor behind investment, success, and lo

Read Full PostRead - Eye Icon
Unipart Launches National Productivity Campaign in UK
Finance
12/11/2015Unipart Launches National Productivity Campaign in UK

According to the company, which has its headquarters in Oxford, productivity is Britain's biggest issue when it comes to economic growth.

Read Full PostRead - Eye Icon
Designing the Future of International Transactions
Finance
11/10/2021Designing the Future of International Transactions

Providing for wholesale banks and large market players in the financial sector, Adhara’s effective and efficient platforms and systems are now being used by some of the largest businesses in the world. Promoting a new technological industry standard, this co

Read Full PostRead - Eye Icon
How to Measure and Prove the ROI of Corporate Innovation: A CFO’s Guide
Finance
19/12/2025How to Measure and Prove the ROI of Corporate Innovation: A CFO’s Guide

CFOs often hold the weight of the company on their shoulders. Leadership might question the need for new tools and technology updates. Successful brands may pause before making changes that deviate from the status quo. Yet, without significant changes, growth

Read Full PostRead - Eye Icon
Augmenting Lives Through Artificial Intelligence
Innovation
21/01/2020Augmenting Lives Through Artificial Intelligence

Technology has proven to be a demonstrably powerful tool in helping people living with disabilities to live truly autonomous lives. In the world today, rapid advancements in areas such as artificial intelligence and machine learning have meant that empowering

Read Full PostRead - Eye Icon
How To Expand A Home-Based Business
Innovation
22/02/2023How To Expand A Home-Based Business

Doing business at home has been recently popularized due to the convenience and advent of technology. Startup entrepreneurs can get their businesses off the ground without worrying about paying for overhead expenses.

Read Full PostRead - Eye Icon
Q1 Update – Mochtar Karuwin Komar
Strategy
01/07/2016Q1 Update – Mochtar Karuwin Komar

Mochtar Karuwin Komar (MKK) is one of Indonesia’s oldest firms and celebrates its 45th year in June 2016.

Read Full PostRead - Eye Icon
R3Location: Trusted Relocation in a Complex City
Strategy
19/01/2018R3Location: Trusted Relocation in a Complex City

R3Location Limited offers an exceptional range of relocation services to companies moving assignees into London and the South East.

Read Full PostRead - Eye Icon
Euro Suffers Further Losses against the US Dollar
Finance
05/03/2015Euro Suffers Further Losses against the US Dollar

Mix of slightly weaker Eurozone numbers and decent US number widens gap between currencies.



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