© 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 Reasons Every Startup Must Calculate Their Market Size
News
27/06/20225 Reasons Every Startup Must Calculate Their Market Size

Building a successful startup goes beyond developing a product or service—you must be sure you are diving into a profitable market, and your product can cater to consumers' needs.

Read Full PostRead - Eye Icon
What is the Future of Digital Marketing?
Innovation
20/10/2021What is the Future of Digital Marketing?

Companies are facing a period of change, in many respects. First, doing business is quite different in a post-COVID-19 world. Some new ways of buying will remain forever. This will need to be addressed in the way companies market their products and services. A

Read Full PostRead - Eye Icon
relayr Completes Second Strategic Acquisition
Innovation
28/02/2017relayr Completes Second Strategic Acquisition

relayr, the global enterprise Internet-of-Things (IoT) platform provider, announces its second strategic acquisition within two months.

Read Full PostRead - Eye Icon
Meet the CEOs
Leadership
22/02/2016Meet the CEOs

Meet the CEOs

Read Full PostRead - Eye Icon
Unlocking Efficiency: How to Enhance Energy and Cost Savings in Facilities and Warehouses
Finance
11/03/2025Unlocking Efficiency: How to Enhance Energy and Cost Savings in Facilities and Warehouses

All business with facilities and warehouses faces mounting challenges when balancing cost management with energy efficiency and sustainability goals.

Read Full PostRead - Eye Icon
Securing Digital Identities Across the Globe
News
09/07/2024Securing Digital Identities Across the Globe

Resecurity specializes in providing its worldwide client base with exceptional Cyber Intelligence Services (CTI) that safeguard its businesses, employees, and customers.

Read Full PostRead - Eye Icon
International engineering consultancy Thornton Tomasetti to acquire MMI Engineering
Leadership
14/06/2018International engineering consultancy Thornton Tomasetti to acquire MMI Engineering

Thornton Tomasetti, the international engineering consultancy, has agreed to acquire MMI Engineering (“MMI”), the technical consulting specialist focused on the risk management of man-made and natural hazards across the oil and gas, nuclear, utilities and

Read Full PostRead - Eye Icon
Shifting Sands – How Bank Managers have Joined the Alternative Finance Boom
Finance
09/03/2018Shifting Sands – How Bank Managers have Joined the Alternative Finance Boom

While many SMEs are worried about the transforming banking landscape, business leaders need not fear that all the experts are disappearing - they may just have to look elsewhere to find them.

Read Full PostRead - Eye Icon
Sie Holding acquires 51% of shares in Tagor Electronic doo Nis.
Legal
05/05/2015Sie Holding acquires 51% of shares in Tagor Electronic doo Nis.

Marija Tasic and Vanja Stojanovic, attorneys at law from Tasic & Partners, after months of negotiation, have finalized the acquisition between Austrian company System Industrie Electronic Holding AG (SIE Holding) and Tagor Electronic doo Nis, leading manufactu



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