Tractor Supply began scaling its private fleet at the start of 2025 as part of a broader plan to expand final-mile capabilities through delivery hubs and employee-driven deliveries (Retail Dive - Technology). For the quarter ending March 28, the retailer saw a double-digit year-over-year increase in delivery volume (Retail Dive - Technology).
To manage this growth, Tractor Supply deployed AI tools to help territory managers build delivery routes efficiently, allowing drivers to focus on customer relationships rather than logistics metrics (Retail Dive - Technology). The retailer also armed store employees with AI-powered information systems to handle increased customer inquiries about order status, recognizing that automation alone was not the right solution given the importance of local customer relationships (Retail Dive - Technology).
Looking ahead, Tractor Supply is pursuing AI-powered estimates of delivery duration at individual addresses and markets to establish greater predictability in driver operations, particularly given the variable time required for bulky item deliveries on farm properties (Retail Dive - Technology).