Sustainable distribution refers to any means of transportation / hauling of goods between vendor and purchaser with lowest possible impact on the ecological and social environment, and includes the whole distribution process from storage, order processing and picking, packaging, improved vehicle loadings, delivery to the customer or purchaser and taking back packaging. Definition Sustainable distribution refers to the macroeconomic allocation of objects that are distributed (goods, services, rights, fees and information) while integrating sustainability issues without compromising conventional purposes that distribution must fulfill. Commonly, distribution means all the processes that occur between producers, retailers and customers. The functions of distribution are physical transportation, storage and warehousing, packaging, labeling, and reverse logistics. A sustainable distribution processes applies these characteristics—it: Satisfies recipient demands of time and place Tackles social and ecological problems Suits life-cycle of sustainability products—with a close link to post-use, as reverse logistics complete the distribution process Delivers a substantial global reduction of environmental and social impacts Continuously improves—permanent monitoring and improvements to socio-ecological impacts to implement newer, more efficient technologies Maintains competitiveness with conventional distribution processes to maintain long-term success—tackling environmental and social issues without compromising efficiency relative to conventional distribution Process Physical transportation Transportation refers to the movement of products from one location to another. The fuel required to transport products depends on: the distance between producers and purchasers or end-customers the quality of the transport infrastructure that connects the two parties the density of depots involved in supplying goods to purchasers, intermediaries or directly to customers. Most transportation infrastructure is owned and managed as a Public good throughout the world. This ensures optimal allocation of investments for maintenance and build-up of transport capacities as needed. Transportation policy aims to prevent abuse of monopoly power, promote fair competition, and balance environmental, energy, and social concerns in transportation. By means of optimizing a country's transport infrastructure, the distance that products travel can be reduced by creating more localized supply chains and by shifting from roads to rail or from air to sea. Transportation innovations can also contribute to the sustainability of distribution processes by improving fuel-efficiency of engines, optimizing vehicle loads and implementing intelligent transportation management systems. Direct transportation is more efficient for moving large quantities, whereas transportation through regional distribution centers is most efficient for small numbers of products. Sustainable transportation lowers costs because companies end up reducing the inputs they use. In addition, the process generates additional