Fort a supplier, it can be a differntiator by providing a high level of service to a retailer and at the same time reducing their customers\' transportation costs. In reality, it is more than just keeping product it in stock. It includes the service aspect of getting the product on the shelves, rotating and disposing of obsolete inventory.

The efficiencies gained by goods handled in a distribution center, are oftenless than through this type of dlivery option. The customer does notcarry inventory in a central location and the supplier has his centrailzed andby monitoring inventory levels, it maximizes its turns.

Technology is of paramount importance to facilitate the orderly and efficient handling of orders, vehicles and drivers.