Today’s business environment has become increasingly competitive. This causes enormous pressure for many companies in many industries. In such an environment, companies need to continuously search for ways to design and manufacture new products, and distribute these products in an efficient and effective fashion. For many years, companies focused their efforts on reducing costs occurring in the manufacturing processes as well as other operations. There are an increasing number of companies looking at distribution and recognizing it as the last frontier for cost reduction. This research paper is an attempt to conceptualize the varied problem faced by logistic companies and suggest some remedial measure to encounter these problems.