The chapter begins by explaining how distribution decisions relate to the overall marketing strategy. There then follows a discussion of the contribution which intermediaries can make to the efficiency and effectiveness of a marketing system and the key decisions to be made regarding the appointment of intermediaries. A description of the main types of intermediary is provided and this is followed by an explanation of what is necessary in order to market to middlemen. The topic of power and conflict in channels is given some consideration. Attention is subsequently focused upon the costs and functions involved in physical distribution. The key aspects of transport and warehouse management are discussed, as are vehicle scheduling models.