Logistics of tractor distribution in an agriculture-driveneconomy: an Indian case study

Abstract

This paper examines critical decision areas in the context of outbound logistics and their analytical resolution (using operational research models) for a tractor company, which was among the market leaders in the tractor industry in India. Customer preferences and demands had changed in the context of the competitive environment. The challenges lay in increasing service levels to the customer through improvements in supply chain management and supporting infrastructure. Apart from value through improved service levels, cost savings of Rs 22 million per year (benchmarked against a profit before tax of Rs 1 billion per year) could be extracted through a better distribution structure involving a new central despatch yard and revised stockyard locations.