Abstract: We do business in a very dynamic environment where the things are frequently changing and marketers are adopting and adapting innovative strategic decisions to tackled the possible threats and avail the potential opportunities. Distribution is one of the most important marketing functions and it is the control of a wide range of activities, which take place after goods have been produced and before they reach the customer, or the next stage of production if they are part of a continuing process. Nowadays marketers are giving due importance to create new methods and processes in distribution system, so that they can strategically add value to customer effectively and efficiently. It is important to business survival and growth but if the new systems are not carried out into practice, inventions are not economically relevant. This article will examine how and to what extent innovation in distribution can help a marketer to build a sustainable distribution network system for the purpose of achieving competitive advantage in a complex market situation.