Nordstrom partners with tech companies for faster delivery

Описание: The Seattle-headquartered company has tapped two new partners, robotics supply chain company Attabotics and parcel-sorting provider Tompkins Robotics, to test a more modern facility in the San Jose area. If successful, the retailer could expand its use to Nordstrom’s eight other U.S. distribution centers.
Nordstrom hopes a speedier and slimmed-down supply chain will help it rise above other department store operators that are struggling to win customers over the likes of Amazon, Walmart and Target. Nordstrom’s online sales are growing, up 16% in fiscal 2018, and make up 30% of total net sales, which were $15.48 billion last year. But revenue is meantime shrinking at its core department store business. So it’s looking for ways to keep stoking this growth engine.
In Newark, California, Nordstrom has stocked row after row of shelving with all of its beauty merchandise to fulfill online orders for Chanel perfume, Kiehl’s facial rubs and Yves Saint Laurent lip kits up and down the West Coast. Nordstrom is also using the center to help stock its stores in the area.
We recognize that the supply chain is a critical component of being able to deliver on [our customers’] experiences,” Ngoc Phan, vice president of supply chain at Nordstrom, said in an interview at the Newark facility earlier this week. “So we’ve been looking for solutions that fit inside our broader strategy. ... It’s about opportunities to get product closer to customers ... and avoid extended shipping and fulfillment delays.”
The combination of Attabotics’ and Tompkins Robotics’ technologies uses 90% less space than other alternatives, and allows the company to be more nimble and stock more inventory, Phan said. The Newark facility, which has been up and running since the spring, is roughly 340,000 square feet, while a traditional warehouse can span upward of 1.5 million square feet, she said.
Nordstrom currently offers same-day delivery for certain ZIP codes in California, Colorado, Illinois, New York and Washington, according to its website. But it plans to grow that option.

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