Problems With Replicating Large Batch Inserts

I have transactional replication set up between 2 SQL Server 2005 databases on 2 different boxes. Both the log reader and distribution agent run in continuous mode. The distributor is residing on a third SQL Server box. We are having performance issues with replication when there are large batch deletes/inserts happening on the publisher. There is a batch job that runs for about 8-10 hours everyday on the publisher and deletes/inserts thousands of records as part of transactions. The amount of time to replicate all this data on the subscriber is around 13-15 hours which is not acceptable to our user community. While monitoring I found that the distribution database (MSRepl_commands table) at times has millions of records in it which would explain why the latency is so high. Add to it the fact that there are large transactions occuring on the publisher.

I was wondering if anyone has faced similar problem before. Are there any conifguration changes I can make to the replication infrastructure to reduce latency?

Would appreciate your help.

Thanks.