Eye on Retail: Tractor Supply unifies operations from supply chain to customer
The nation's largest rural lifestyle retailer is managing customer demand and improving its shopping experience with a new enterprise platform.
Tractor Supply Company is leveraging the Software ATTG integration and API management solution to enable customers to connect their shopping experiences across store, mobile, and click-and-collect channels. The retailer implemented curbside pickup during the COVID-19 pandemic, and also rolled out new online and mobile channels.
In addition, the company is connecting the extended retail industry supply chain, from supplier to customer. Tractor Supply uses the Software AG webMethods solution to integrate systems and data from the supply chain to the customer, which the retailer credits for helping it to avoid business disruptions during the pandemic.
Tractor Supply Company, which began in 1938 as a mail-order business focused on providing quality tractor parts to farmers at fair prices, is upgrading its customer experience and supply chain connectivity as it comes off a record year of sales and earnings. The company reported that net sales increased 19.9% to $12.73 billion for the year ended Dec. 25, 2021; comparable store sales increased 16.9%.
The retailer also announced that it will build a 900,000-sq.-ft distribution center in Maumelle, Ark. The center, which will be the retailer’s tenth to date, is expected to open in late 2023.
In addition, Tractor Supply recently celebrated the grand opening of its 2,000th location, in White House, Tenn. Tractor Supply stores provide a one-stop shop for the community, with a wide range of products that includes pet supplies, animal feed, propane tanks, fencing, tools and outdoor power equipment, apparel, gifts and decor and more. Select locations also feature a garden center featuring live goods and seasonal items for everyone from novice gardeners to professional landscapers.
“The nature of our business changed dramatically when the pandemic hit – as it did for every business,” said Rob Mills, executive VP and chief technology, digital and strategy officer, Tractor Supply. “What became clear was that in the ‘new normal,’ integration and forming a fluid flow of data between systems would be key to maintaining strong relationships with our customers. It’s not just a question of can we build an app or add more functionality to our website.
“The biggest change is being able to easily exchange data between our systems in real-time, making sure that we can adapt to the changing needs of our customers quickly,” Mills said. “Software AG has become part of the end-to-end value chain from sales to replenishment to delivery, which is helping to satisfy our customers, in-store and through digital channels.”
“Working with Tractor Supply we were able to find ways to better connect customers to the company,” said Mike Haugen, president of SoftwareAG Americas. “Software AG’s Integration and API management offering addresses the diverse priorities of our customer, ranging from integration, API-product-led digital business, B2B ecosystems and microservices-based application modernization.”
As of Dec. 25, 2021, Tractor Supply Company operated 2,003 stores in 49 states, a consumer mobile app, and an e-commerce website.
(This article originally appeared on HBSDealer's sister site, Chain Store Age.)
