Tractor Supply to Cut In-Store Safety Stock with Just-in-time Replenishment Centers

Tractor Supply Company plans to add more facilities over the next several years that provide its stores with just-in-time replenishment of some of its fastest-turning items over the next several years, Colin Yankee, executive vice president and chief supply chain officer, said on the company’s Q4 earnings call in January.

The retailer operates a dozen of these facilities, called mixing centers, throughout the U.S. The mixing centers focus on delivering the 100 highest-velocity consumable, usable and edible (C.U.E.) products in full-pallet quantities, and they have the added advantage of removing 400 square feet of safety stock inside stores, per an investor presentation.

“Over the last several years, our mixing centers have proven to reduce the days of inventory coverage required in stores to support sales, relieving pressure on our store backrooms while increasing in-stocks,” Yankee said.