Demand placed on the distribution and logistics departments has been continuously intensifying due to pressures from increased competition, introduction of new manufacturing methods, and increased expectations from partners and consumers in terms of low price and high service levels. Corporations are looking to increase their customer service levels, while reducing inventory, working capital requirements and distribution costs.

While distribution and logistics planning is gaining importance within corporations, distribution planners and supply chain managers are still struggling to come to terms with the increased expectations. The bulk of their time is still spent on short-term operational problems related to meeting immediate demand requirements, without much consideration for longer-term costs or strategic issues. Distribution Planning should be led by Demand Planning and be a driver for Production Planning to ensure seamless supply chain integration.