The case study was conducted for a spare parts department of a multinational industrial equipment manufacturer and service provider. Following a previous study (Paakki and Huiskonen, 2008), the company wanted to make further research on how to effectively analyze the current distribution performance and performance gaps as there was pressure to increase the com- pany’s service performance. Due to the growth in the company, several distribution chain alignment projects were being con- ducted in the company. This created a good environment for the case study as some of the undertaken projects were not fully implemented. The previous study concentrating on the categorization of the parts according to the demand aspects had revealed the impact of variability on the inventory management possibilities and provided some understanding of the root causes behind the variability. Although the company had adopted many actions to improve the inventory control parameter setting and planning, it also understood that instead of increasing the stocking levels, major improvements are possible only by proactive management of the actual causers of the variability.