Seattle-based fashion retailer Nordstrom has acquired minor stakes in Utah-based DropShip Commerce (DS Co.), supply- chain software firm that allows retailers, brands, third-party logistics, suppliers and distributors to communicate through a standardized supply network, thereby streamlining the way they connect and exchange inventory, order through a single touchpoint.
The investment follows a successful partnership in which DS Co. will help Nordstrom manage its distributed inventory, order fulfilment, drop shipments for Nordstrom.com and improve customers’ online experience by reducing the complexity in the company’s supply chain, said Ken Worzel, Executive VP of Strategy and Development, Nordstrom.
Another advantage of this system for Nordstrom is that it can hold less inventory and therefore reduce costs and hence, will provide a method to compete with other eCommerce retailers.
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“Drop shipping increases brand visibility, awareness and sales revenue by offering a wider breadth and depth of product,” Nordstrom’s manual noted. “As items become more broken in sizing, we miss sales. Drop ship gives us the inventory coverage to capitalize on missed sales opportunities,” it adds.
