Nordstrom promotes supply chain executive amidst ongoing inventory loss issues
Nordstrom Shuffles Deck, Taps Alexis DePree as COO
Swanky retail giant, Nordstrom, has upped the ante by promoting Alexis DePree to the coveted position of chief operating officer. The announcement was made public on a Friday, giving the fashion world a much-needed dose of excitement.
DePree, a former Amazon and Target executive, joined the Nordstrom family four years back as exec VP and chief supply chain officer. Her responsibilities, as stated by the company in the official press release, would still include managing supply chain operations, transportation, inventory operations, enterprise operations, and store operations.
Today, coincidentally, Nordstrom also spilled the beans about theft-related issues in their transportation network and supply chain affecting their gross margins by a whopping 225 basis points. Evercore ISI analysts, lead by Michael Binetti, had previously flagged this problem, expressing concerns that there's little room for errors on the margins, and the shrink-related risk might persist.
However, DePree's strategic moves seem to be bearing fruit. The retail powerhouse reported significant progress under her leadership, particularly in areas like enhanced supply chain network, increased speed to customers, and cost reduction.
Moving forward, Nordstrom has set its sights on leveraging RFID technology and working towards improved operational efficiency and consistency. RFID tech could potentially allow Nordstrom to track items right from production to sale, bringing real-time inventory accuracy, reducing stockouts and overstocking, and supporting omnichannel services like BOPIS.
Supply chain compliance and reducing chargebacks are other key areas Nordstrom aims to work on, following industry-wide mandates and internal optimization goals. To achieve this, Nordstrom plans to enforce RFID mandates on suppliers for standardized data capture, minimize errors in inbound shipments, and ensure a digital chain of custody via RFID to resolve disputes and minimize disputes related to On-Time In-Full delivery.
While specific details about the system aren’t publicly known, similar retailers are known to use RFID-enabled Warehouse Management Systems (WMS) for end-to-end traceability. By adhering to collaborative industry standards, Nordstrom is likely participating in initiatives like the Auburn RFID Lab conferences and supporting scalable solutions like EPC Gen2v2 encoding and ARC retail standards.
In essence, Nordstrom’s RFID strategy revolves around item-level tagging, supply chain integration, and sourcing tagging for cost reduction, improved shipment accuracy, and maintaining a competitive edge in the retail sphere. The road ahead seems promising for the retail juggernaut as it dives deeper into the world of RFID technology to optimize operations and keep pace with the ever-evolving retail landscape.
- AI technology is likely to play a significant role in Nordstrom's future plans, as they aim to optimize operations and keep pace with the retail landscape, particularly with the implementation of RFID technology.
- Following her promotion to chief operating officer, Alexis DePree's strategic moves, such as enhancing supply chain networks, increasing speed to customers, and cost reduction, have shown promising results for Nordstrom.
- In an effort to address theft-related issues affecting their gross margins, Nordstrom hopes to work on supply chain compliance and reduce chargebacks by implementing RFID technology and enforcing mandates on suppliers for standardized data capture.
- Evercore ISI analysts, led by Michael Binetti, had previously raised concerns about shrink-related risks and the lack of room for errors in Nordstrom's margins, which might persist.
- Nordstrom's RFID strategy is centered around item-level tagging, supply chain integration, and sourcing tagging for cost reduction, improved shipment accuracy, and maintaining a competitive edge in the retail industry.
