© Copyright Acquisition International 2025 - 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.

“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 Wallet of the Future
Finance
30/11/2016The Wallet of the Future

Allied Wallet is a world leader in payment processing and merchant services, enabling consumers to transact with merchants at a very low rate.

Read Full PostRead - Eye Icon
Worker’s Compensation Claims in Chicago: What You Need to Know
Legal
05/06/2023Worker’s Compensation Claims in Chicago: What You Need to Know

Employers do their best to ensure the safety and well-being of their employees, from implementing safety regulations and determining if employees should wear PPE to providing ergonomic equipment and wellness resources.

Read Full PostRead - Eye Icon
One year on – what has lockdown done for UK’s tech sector
News
24/03/2021One year on – what has lockdown done for UK’s tech sector

The tech sector boasts an agile workforce that embraces new digital solutions before other sectors, and as a result showed its ability to adapt amid the global crisis. Consequently, it fared well compared to many other labour markets and showed good recovery a

Read Full PostRead - Eye Icon
Data Quality Holds the Key to Greater Profits, Finds Report
Finance
18/03/2015Data Quality Holds the Key to Greater Profits, Finds Report

A new report by Experian confirmed that while businesses are increasingly aware of the potential of their data – with estimates that it could improve profitability by up to 15%- more than 90% still find data improvement challenging.

Read Full PostRead - Eye Icon
Redefining Communication
Innovation
12/10/2021Redefining Communication

Investis Digital is a global communications company that is establishing itself as a revolutionary leader of digital connectivity. Championing cutting-edge technology that allows brands to tell their stories and engage on a deeper level with their customers, I

Read Full PostRead - Eye Icon
School of Success: 6 Things Business Owners Can Learn from Teachers
Corporate Social Responsibility
05/06/2024School of Success: 6 Things Business Owners Can Learn from Teachers

Business and teaching are too often viewed as opposites or, at best, distant cousins when they actually have to lot in common. The biggest thing many of us don’t realise or have forgotten?

Read Full PostRead - Eye Icon
CREALOGIX’s acquisition of MBA Systems
Finance
19/03/2015CREALOGIX’s acquisition of MBA Systems

CREALOGIX has acquired MBA Systems, a well-established UK fintech brand and leading supplier of innovative web-based solutions and services to the securities and wealth management industries. With this move, CREALOGIX - the Swiss based technology group ranked

Read Full PostRead - Eye Icon
Next Generation Private Banking
Finance
31/07/2016Next Generation Private Banking

Founded in 2007, BRT is a dynamic and unique firm that specialises in providing middle and back office support to asset managers, hedge funds, private banks and family offices.

Read Full PostRead - Eye Icon
Intertek Acquires MT Group
M&A
27/10/2015Intertek Acquires MT Group

Intertek gains new geotechnical and materials services and expands US Building sector with footprint into the New York Metro area.



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