Farmaid Tractors Limited (FTL) was a tractor company with a 20% market share, and aiming to be the market leader within next five years. The tractor industry in India had become very competitive, with growth in capacity outstripping the growth in demand. Customer preference and demands had changed in the context of the competitive environment. The role of the dealer and servicing the dealer by the company were recognized by FTL as key success variables in this business. The key issues of concern were to develop a partnership with the dealers by bringing in a service focus, through improvements in supply chain management and outbound logistics. Two critical areas for analysis were taken up, namely: (i) Order processing and inventory planning, and (ii) The distribution structure, including stockyard location.