Tractor Supply Co. has seen promising signs for customer experience when it comes to in-house deliveries. Courtesy of Tractor Supply)
Tractor Supply Co. is embarking on a multi-year initiative to revolutionize its last-mile delivery operations by bringing more deliveries in-house. Executive Vice President and Chief Supply Chain Officer Colin Yankee outlined the plan during an investor presentation, emphasizing a strategy to establish “hub stores” that combine drivers and inventory from various facilities for streamlined customer deliveries.
The retailer currently handles 5 million annual final-mile shipments, with 90% delivered within 40 miles of a store. By leveraging its extensive network of stores and mixing centers, Tractor Supply aims to create a flexible, asset-light delivery solution. Yankee highlighted that in-house deliveries yield higher customer satisfaction scores and significantly lower product return rates compared to third-party carriers.
The initiative addresses the challenge of delivering bulky items, such as fence panels and riding lawnmowers, often to remote locations. By 2025, Tractor Supply plans to build a dedicated final-mile team, adopt advanced routing technology, and expand delivery coverage. The company aims to scale operations further by 2028, eventually covering 90–95% of large item orders by the decade’s end.
This forward-thinking approach positions Tractor Supply to enhance customer experience while driving efficiency and growth in its delivery capabilities.
