© 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
First Quarter Update – Puyat Jacinto & Santos (PJS) Law
Legal
01/07/2016First Quarter Update – Puyat Jacinto & Santos (PJS) Law

PJS Law is Puyat Jacinto & Santos, a Philippine-based general professional partnership engaged in the practice of law.

Read Full PostRead - Eye Icon
Cloud-Based Phone Systems: The Pros and Cons
News
26/06/2023Cloud-Based Phone Systems: The Pros and Cons

In today’s interconnected world, communication plays a pivotal role in the success of businesses, both big and small. Traditional phone systems are gradually being overshadowed by the rise of cloud-based phone systems such as Voice over Internet Protocol (Vo

Read Full PostRead - Eye Icon
Effective Law Firm Digital Marketing: Comprehensive Guide
Innovation
06/08/2024Effective Law Firm Digital Marketing: Comprehensive Guide

Any law services become competitive with an effective digital marketing strategy. Traditional marketing methods, such as various word-of-mouth referrals and in-person consultations, fall a little short of their own accord when it comes to attracting and retain

Read Full PostRead - Eye Icon
Data Analytics and AI Are Expected to Be the Top Technologies Driving the Growth of Fintech, Finds Mastercard Study
Finance
14/10/2022Data Analytics and AI Are Expected to Be the Top Technologies Driving the Growth of Fintech, Finds Mastercard Study

Data analytics and artificial intelligence (AI) are the top technologies of the Fourth Industrial Revolution that are powering fintech solutions, found a Mastercard study on the state of fintech in the Middle East and Turkey markets*.

Read Full PostRead - Eye Icon
6 Strategies for Boosting Employee Productivity and Sales
News
16/03/20236 Strategies for Boosting Employee Productivity and Sales

We often come across managers who provide their employees with full creative freedom and flexibility to meet their deadlines.

Read Full PostRead - Eye Icon
Best for Employment Visa Advice – Colorado
Legal
17/05/2016Best for Employment Visa Advice – Colorado

Maria Lourdes Rodriguez, Esq. started Rodriguez Law Firm in 2005 after she realised the lack of trustworthy immigration lawyer advice in the Colorado region.

Read Full PostRead - Eye Icon
IT Consulting 101: How It Works and Why Your Business Needs It
News
04/11/2021IT Consulting 101: How It Works and Why Your Business Needs It

Any business that wants to remain relevant and competitive must utilize information technology (IT). IT involves the use of modern tools and applications to promote business efficiency.

Read Full PostRead - Eye Icon
CEO of the Year – Wisconsin
Finance
02/02/2016CEO of the Year – Wisconsin

WEC Energy Group, Inc, (NYSE: WEC) is one of the nation’s premier energy companies, serving 4.4 million electric and natural gas customers in Wisconsin, Illinois, Michigan and Minnesota.

Read Full PostRead - Eye Icon
A Recent Survey Shows the Impact of GDPR as 72 Percent of Companies Want to Adhere to Improve and Build Trust with Customers
Legal
21/10/2024A Recent Survey Shows the Impact of GDPR as 72 Percent of Companies Want to Adhere to Improve and Build Trust with Customers

A recent survey involving 1,800 CEOs and marketing executives in 27 European countries has highlighted the ongoing challenges facing companies trying to ensure adherence to GDPR.



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