DISTRIBUTION & WHOLESALE

THE NETWORK IS THE FACILITY.

THE NETWORK IS THE FACILITY.

Every branch, distribution center, transfer route, and customer promise affects the performance of the whole.

Every branch, distribution center, transfer route, and customer promise affects the performance of the whole.

OPERATING SIGNALS

A REAL ESTATE QUESTION IS OFTEN AN OPERATING SIGNAL.

The building is rarely the first problem. The operating system tells you where to look.

01

CONGESTED BRANCH

02

CAPACITY IMBALANCE

03

LEASE EVENT

04

MARKET EXPANSION

05

ACQUISITION INTEGRATION

OPERATING SIGNAL

SYMPTOM

IMPLICATION

NETWORK DECISION

LABOR

LABOR

Late cuts and overtime

Late cuts and overtime

Handling burden is concentrated

Handling burden is concentrated

Rebalance branch work

Rebalance branch work

INVENTORY

INVENTORY

Transfers outrun demand

Transfers outrun demand

Stock sits in the wrong node

Stock sits in the wrong node

Reset inventory position

Reset inventory position

SERVICE

SERVICE

Cutoffs miss promise windows

Cutoffs miss promise windows

Coverage is uneven by route

Coverage is uneven by route

Redraw service radius

Redraw service radius

YARD

YARD

Trailers queue beyond shift

Trailers queue beyond shift

Site circulation limits flow

Site circulation limits flow

Rework yard and docks

Rework yard and docks

CAPITAL

CAPITAL

Spend date drives the move

Spend date drives the move

Capital and lease are misaligned

Capital and lease are misaligned

Sequence investment

Sequence investment

CUSTOMER REACH

CUSTOMER REACH

Growth sits outside coverage

Growth sits outside coverage

The next market has no anchor

The next market has no anchor

Locate proposed node

Locate proposed node

SEE THE NETWORK BEFORE YOU MOVE A NODE.

SEE THE NETWORK BEFORE YOU MOVE A NODE.

NETWORK SIGNALS

ROUTE TIME
BRANCH CAPACITY
INVENTORY TRANSFER
SERVICE RADIUS
MARKET OVERLAP
YARD LIMITS
LEASE TIMING
CUSTOMER DENSITY

DC-01CAP 78%BR-02 / 94%BR-03 / 61%BR-04 / 83%BR-05 / 72%BR-06 / 88%ROUTE 42mXFER 18mSERVICE 33mSEQ: 5 HUB LINESTHROUGHPUT INDEX 0.78PROPOSED NODE

THE QUESTION UNDERNEATH

01 What is the network paying for this constraint?

02 Which node should carry the next move?

03 What must be sequenced before a lease event?

CONCLUSION

Move the network logic before the building.

WHAT KAG MEASURES BEFORE RECOMMENDING REAL ESTATE.

WHAT KAG MEASURES BEFORE RECOMMENDING REAL ESTATE.

OPERATING SIGNAL

HIDDEN COST

FACILITY IMPLICATION

DECISION PATH

THROUGHPUT & FLOW

Missed capacity

Re-slot work and docks

Model flow first

INVENTORY POSITION

Transfer drag

Rebalance branch stock

Reset node roles

LABOR & HANDLING

Overtime leakage

Rework labor path

Align work to footprint

CUSTOMER REACH

Service erosion

Test access and radius

Position coverage

TRANSFER COST

Freight duplication

Change route logic

Right-size network

SITE & YARD

Queue and dwell

Fix circulation

Test site limits

CAPITAL TIMING

Forced sequencing

Pair lease and capital

Sequence the decision

DC-01DOCK 06YARD FLOW1.2 MI SERVICE RADIUS180’ APRONPLAN TYPE: OPERATIONAL FACILITY LAYOUTREV: KAG-IND / GRID 10'

ONE BRANCH DECISION CAN CHANGE THE WHOLE NETWORK.

ONE BRANCH DECISION CAN CHANGE THE WHOLE NETWORK.

BEFORE
CONNECTED PATHSEQUENCED FLOW
AFTER

KAG CONNECTS THE OPERATING DISCIPLINES.

KAG CONNECTS THE OPERATING DISCIPLINES.

OPERATIONS

What must work

FACILITIES

How it performs

CAPITAL

Where we invest

REAL ESTATE

Where we operate

EXECUTION

How it gets done

STRATEGY SHAPED BY REAL OPERATING RESPONSIBILITY.

STRATEGY SHAPED BY REAL OPERATING RESPONSIBILITY.

170+
INDUSTRIAL LOCATIONS

170+
INDUSTRIAL LOCATIONS

$80M
CAPITAL OVERSIGHT

$80M
CAPITAL OVERSIGHT

30+
NEW LOCATIONS

30+
NEW LOCATIONS

15+
RELOCATIONS

15+
RELOCATIONS

10+
GROUND-UP GREENFIELDS

10+
GROUND-UP GREENFIELDS

10+
BRANCH CLOSURES

10+
BRANCH CLOSURES

LET’S LOOK AT THE NETWORK—NOT JUST THE BUILDING.

LET’S LOOK AT THE NETWORK—NOT JUST THE BUILDING.

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