Nordstrom Smartly Moves from Client to Investor
Nordstrom began using platform Dsco in order to manage their inventory, shipping, and handling with ease. This allowed for seamless data exchange from their retailers down to their suppliers. Nordstrom sees the value in Dsco and has made the decision to invest into the 3 yr old start up to aid in the companies growth.
Dsco is the middle man for retailers. Dsco facilities the company's drop shipping from their suppliers. In short, the order will ship directly from the manufacturer to the customer. This is a bonus for the retailer because they have no need for a warehouse to hold inventory. The inventory comes straight from the supplier as the orders roll in. This also saves the retailer from over purchasing merchandise. There is no upfront buying. This does benefit the supplier as well because the retailer is fully reliant on the supplier for its inventory.
Nordstrom validates Dsco's importance. This is the future of retail. Those warehouses take man power and so much more. The savings with in business will be astronomical.
Dsco has also set up a easy platform for communication from retailer to supplier which does not compromise data storage or technology. This allows both the retailer and supplier to communicate in comfortable manner. This connection brings a standard to the exchange of data and has main streamed the management of inventory. This will ensure that there are no flaws on inventory count or ability to sell an item that is actually out of stock. All the bases have been covered with Dsco.
This element is particularly important as research is begging to show that as the years progress the customer is more concerned with shipping standards, return policy, and method of delivery. Customers need to feel confident when making online purchases. They need to believe that their orders will come on time and in a safe fashion. Dsco has impressed Nordstrom with their ability to do so. Their customer base feels at ease when purchasing online merchandise. Nordstrom online coupons attract customers more than ever to their website.
According to the Wall Street Journal - Nordstrom has only taken a small stake into Dsco with plans for similar investments in companies in the like. They are making moves to grow the supply chain into this arena of the market.