Nordstrom Revamps Customer Experience With New Supply Chain Strategy

The supply chain isn’t typically a strong consideration when building a customer experience strategy. But at Nordstrom, the supply chain is a critical element of delivering quality customer experiences. The company recently re-imagined its supply chain with customers at the center to create a delivery and logistics process that gets customers exactly what they need, when they need it.

In order to build a new approach to the supply chain, Nordstrom had to let go of the historical concepts of what a supply chain can do. According to Ngoc Phan, VP Supply Chain Systems and Engineering, Nordstrom set out to create a system that can evolve with changing customer demands and help customers engage with the brand on their terms. One size doesn’t fit all, which means the supply chain needs to be customizable for each customer.

Phan says Nordstrom looked to optimize its supply chain for customers instead of the traditional cost or transportation considerations and looked at three opportunities:

1.     Flexibility. Modular solutions help Nordstrom adapt as customer needs evolve and change. The supply chain acts as a framework that can adjust with customers.

2.     Space. Nordstrom has existing physical assets in many markets where customers live, so it looked for solutions to optimize the existing space in its network.

3.     Operational simplicity. The supply chain doesn’t need to be complicated. Nordstrom wanted to increase productivity and decrease the time it took to train and onboard new employees by using intuitive solutions.

With these opportunities in mind, Nordstrom’s revamped supply chain leverages its existing physical space, as well as new technology like robotics and automation, to quickly deliver products to customers. No matter if a customer wants to pick an item up in store, browse the racks the find the perfect item or have it delivered to their home, Nordstrom’s customizable supply chain helps meet their needs and provide great service.

Nordstrom shows that the supply chain is a crucial aspect of customer experience and a piece that shouldn’t be overlooked by companies that want to provide consistent experiences to their customers from all sides.

Listen to Ngoc Phan, VP of Supply Chain Systems & Engineering at Nordstrom on the Modern Customer Podcast.

 Blake Morgan is a customer experience futurist and the author of two books including her new book The Customer Of The Future. Learn more by signing up for her weekly newsletter here.