© 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
Should Real Estate Investment Be Part Of Your Acquisition Plan in 2023?
News
10/05/2023Should Real Estate Investment Be Part Of Your Acquisition Plan in 2023?

The real estate market is rarely out of the media now. The pandemic saw huge rises in property prices. And demand for homes went through the roof. Now though, high inflation and mortgage rate hikes are causing consternation for buyers.

Read Full PostRead - Eye Icon
The History and Basics of Cost Segregation (Cost Seg)
Finance
22/02/2023The History and Basics of Cost Segregation (Cost Seg)

Cost segregation has a long and varied history, with its roots stretching back to the late-1800s. The concept was initially used as a way to help business owners save money on their taxes by splitting assets into different categories and leveraging the varying

Read Full PostRead - Eye Icon
Providing Excellent Compliance Solutions
Innovation
18/12/2017Providing Excellent Compliance Solutions

FMConsult is a specialist compliance, collective investment schemes, operational risk and investment risk management consultancy that services a whole host of financial services firms; primarily in the wealth management and asset management arena.

Read Full PostRead - Eye Icon
Hogan Lovells Q2 2016 M&A Outlook
Legal
01/04/2016Hogan Lovells Q2 2016 M&A Outlook

On Mergers and Acquisitions David Gibbons, Partner, Global Head, Corporate Practice said that despite being off last year’s record pace, the M&A market continues to have a healthy outlook.

Read Full PostRead - Eye Icon
A Full Service Offering
Legal
01/12/2016A Full Service Offering

For more than 20 years, the Emmanuel Jacques Almosnino (EJA) law firmbased on the luxurious island of Saint Barth- has effectively represented VIPs and high-net worth clients from around the world.

Read Full PostRead - Eye Icon
Leading M&A Adviser for 2016
Finance
29/06/2016Leading M&A Adviser for 2016

For Haitong International Securities Group Limited (“Haitong International”; 665.HK), mergers and acquisitions (M&A) is not only one of our key business segments, but the essence that makes us who we are.

Read Full PostRead - Eye Icon
Safeguarding Small Enterprises: Navigating the Landscape of SME Cyber Threats
News
30/11/2023Safeguarding Small Enterprises: Navigating the Landscape of SME Cyber Threats

In the dynamic realm of business, Small and Medium-Sized Enterprises (SMEs) are not immune to the pervasive and evolving threats posed by cybercriminals. A recent study by Sharp UK reveals a concerning statistic – a huge one-third of UK SMEs lack any sec

Read Full PostRead - Eye Icon
Diligent Consultancy Advises Beech Tree Private Equity’s Investment in RS Fleet
Finance
14/05/2015Diligent Consultancy Advises Beech Tree Private Equity’s Investment in RS Fleet

Diligent Consultancy advises Beech Tree Private Equity's Investment in RS Fleet

Read Full PostRead - Eye Icon
How the Internet has Transformed Customer Service
Corporate Social Responsibility
24/02/2023How the Internet has Transformed Customer Service

The internet, in the past two decades, has transformed many aspects of life over the years, and some would even say practically all aspects. One area that has been forever changed is customer service as companies are now able to utilize the internet to provide



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