© 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
The Benefits of QR Codes for Business Marketing and More
Innovation
05/10/2023The Benefits of QR Codes for Business Marketing and More

Business founders and owners easily find themselves drifting when thinking of new offerings or solutions to help them boost the visibility of their companies. Quick response codes are among the latest solutions and offerings that business owners and founders a

Read Full PostRead - Eye Icon
Engineering Leadership Skills in High Demand
Leadership
09/12/2019Engineering Leadership Skills in High Demand

For experienced professionals with an MBA engineering qualification, the career options are endless, so what is it about engineering graduates that makes them stand out from the crowd?

Read Full PostRead - Eye Icon
8 Technology Solutions to Help Expand Your Business
News
02/11/20218 Technology Solutions to Help Expand Your Business

Modern businesses must rely on various digital technologies to thrive and expand. From accounting, project management, and office communication to customer service and digital marketing, there are multiple solutions that can streamline and ultimately improve b

Read Full PostRead - Eye Icon
To Infinity and Beyond with Infinity Group Australia
Finance
08/10/2025To Infinity and Beyond with Infinity Group Australia

For millions of Australians, financial security seems further away than ever. As banks across the country post record profits, all whilst being seemingly unaware of the financial situations of everyday people, their attitudes remain poor and their lack of pers

Read Full PostRead - Eye Icon
The Foundation of Value: Why Operational Excellence Remains the Most Important Asset for Business Leaders
Leadership
24/09/2025The Foundation of Value: Why Operational Excellence Remains the Most Important Asset for Business Leaders

In today’s rapidly changing business environment, operational excellence should be understood as more than a cost-cutting tool. By embedding strong operational practices, companies create value that persists through both booms and downturns.

Read Full PostRead - Eye Icon
Leading the New Frontier of Private Investment Management
Finance
05/08/2022Leading the New Frontier of Private Investment Management

Industry FinTech, the ‘Best Fund Administration’ for 2022 in Florida, has made a name for itself across the United States of America with its front-running, highly technologically enabled, and legally compliant services.

Read Full PostRead - Eye Icon
How to Make Sure AI Works for Your Business
Innovation
16/05/2023How to Make Sure AI Works for Your Business

According to 2022 statistics from the government, there are 5.5 million SMEs in the UK making up 99% of the total business population. They are the backbone of a healthy economy and generate growth and employment opportunities.

Read Full PostRead - Eye Icon
Revolutionising Resolution – The Rise of Online Dispute Resolution
Innovation
09/05/2016Revolutionising Resolution – The Rise of Online Dispute Resolution

Ajuve is a highly innovative online dispute resolution service whose slogan is ‘Hate lawyers? Love Ajuve”. A bold statement, perhaps, but their new service is targeting the public’s many reservations about the legal industry, and is designed to revolutio

Read Full PostRead - Eye Icon
Ones to Watch for 2016: The Leading Tax Experts
Finance
05/05/2016Ones to Watch for 2016: The Leading Tax Experts

ARN HOXTON is a boutique accounting firm based in the city of London, primarily offering services to small and medium sized businesses.



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