To be successful in today's business environment, retailing management have become more aware of the leverage offered by effective logistics management. It is interesting to see how the successful companies are using logistics to improve profitability. J. Sainsbury, the UK food multiple, reported in November 1993 that their increase in profit was due in no small part from improvements in distribution. In the first half of 1993–4 distribution costs fell by 0.1 per cent of sales: this suggests that with sales in excess of £5,500 million the contribution to net profit of £5 million was indeed significant.