Nordstrom: Using Technology to Reshape Operations
As demand increases for procurement teams around the world, the need to adapt strategies becomes a top priority.
For many, this strategy transformation comes in the form of technological advancements, with more teams turning to AI and automation to handle the time-consuming tasks.
Through this digitalisation, procurement is becoming more efficient every day, with resilience becoming embedded in their solutions.
Improving operations
In 2020, Nordstrom expanded its supply chain network in order to meet demand. Through its West Coast Omni Center (WCOC) warehouse in California, the company was able to store more products and undertake digital innovations which made it easier for order fulfilment.
The facility was build with the latest automation and data-driven processes in order to ensure efficiency and accuracy from the beginning of its operations. Through this, the facility was able to drive twice as much volume in order to meet consumer demand.
Part of the digitalisation includes a dynamic routing algorithm, which utilises information from the company's network and examines processing time, orders in queue and transit time in order to calculate an estimated arrival time. Through this, the company can create more visibility into its operations to ensure customer satisfaction.
Teams around the world are embedding digitalisation into their operations to help both consumers and team members. For teams, it makes their processes more accurate, more efficient and it allows them to focus on more important work, rather than spending their energy and resources on time-consuming work which can be done by automation.
Nordstrom's technology adoption
Like many businesses in recent years, Nordstrom is emphasising the need for technological transformation and the application of digital tools across a supply chain. As companies have been facing higher demand, manual, paper-based tasks are no longer an option. Instead, Nordstrom has turned towards AI and automation.
Manually inputted data can cause significant error, with these mistakes dripping through to affect the rest of the supply chain. The more accurate the data input is, the better result for analytics presentation. By utilising automation and AI for these processes, procurement teams can work better through using more accurate data points.
Now, Nordstrom is working to embed generative AI into its everyday business processes, relying on end-to-end data programmes to ensure customer experience can increase in quality and merchandise assortment can be utilised to provide the most desirable items.
Despite this, Nordstrom recognises that people are still a main driver of procurement and that using technology for the sake of it becomes an issue in itself. Without the people and processes to guide a tool, it will not demonstrate long-term success.
When the technology is applied strategically, it can shorten process times, increase cost savings and create more efficiency and resilience throughout the supply chain.
Join Nordstrom at PSC: Live
Karoline Dygas, VP, Sourcing and Procurement - CPO at Nordstrom, will be taking part in a panel discussion at Procurement & Supply Chain LIVE: The US Summit, entitled 'The Future of Procurement Technology'. The panel, which takes place on 21 April at 12:15pm, will explore how procurement is being shaped by technology.
During this event, leaders will share insights on innovations within automation, analytics and digital platforms which help transform supply chains. These advancements are creating faster, smarter and more resilient supply chains, to ensure better business operations and increased customer satisfaction.
As VP and CPO, Karoline leads strategic sourcing and procurement for all non-merchandise spend. In her role, she oversees the technological transformation of the company to ensure it provides a digitally focused delivery model. Its aim is to ensure the best possible customer experience and top quality financial performance of the company.
Across her career, she has led sourcing for a range of global teams and been responsible for spend across a range of priorities. As an expert in sourcing and technological transformation, Karoline can offer some sound insights to leaders at the event.
Karoline looks towards the event, stating: “I'm thrilled to join other industry leaders in discussing how a digitised sourcing and procurement function can further enhance organisational value.”
Procurement & Supply Chain LIVE: The US Summit
Procurement & Supply Chain LIVE: The US Summit takes place April 21-22, bringing together senior procurement and supply chain leaders focused on innovation, strategy and transformation in their organisations. Co-located with Sustainability LIVE: The US Summit, the event provides a comprehensive view of procurement and supply chain’s evolving role in driving business value and sustainability.
It will also feature the inaugural US awards, which will be presented during a black-tie gala dinner at Navy Pier, uniting the leaders driving procurement and supply chain excellence across the US and Canada.
The awards ceremony will take place at following Day 1 of the US Summit.
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Karoline Dygas
VP, Strategic Sourcing and Procurement (CPO)
