What: The department store is using supply chain automation and artificial intelligence to catalyze both the customer and employee experience.

Why it is important: The retailer’s automated fulfillment centers are up to five times more efficient than ones without their technology upgrade.

In California, the retailer has a 1-million-square-foot fulfillment center that handles West Coast DTC orders and shuttles merchandise to area stores. The center has been an automation win for the company and has allowed the retailer to get closer to customers through technology such as sortation systems.

The retailer also uses robotic solutions from Attabotics and Tompkins Robotics to efficiently store and sort products in some of its warehouses. The systems cut out-of-stocks with a technology footprint that’s 90% smaller than legacy warehouse automation solutions.

Nordstrom saw a 20% improvement in distribution and fulfillment center productivity and throughput last year, meaning customers are receiving orders faster. The retailer’s supply chain chief also credited their supply chain initiatives for a 200-basis-point improvement in selling, general, and administrative expenses as well as lower per-unit fourth quarter costs.

The retailer has also been using AI to assist customers and employees. AI-based styling algorithms pull together curated looks and associates can also quickly pick up new processes and products through AI. In both initiatives, the company is leveraging and empowering employees to make technology useful for them and create more flexibility in their lives.

Nordstrom supply chain chief talks automation, AI