The relationship between retailer and supplier, the impact of data processing and data transmission on the distribution and stock‐ordering function, the particular needs and developments associated with the superstore; all these points are discussed here by the author. He concludes that the 80s is the decade when the challenge of finding more cost effective distribution must be met, and when retailer and supplier have to move together towards a common aim. This paper and the three which follow were all presented at the one‐day conference, arranged by Supermarketing and Food Processing, “Physical Distribution in the 80s”, held in London in February.