C A S E S T U D Y
Inventory distortion is a constant issue that is driving the rise of optimizations such as drop shipping. Drop shipping has also introduced new challenges to partnerships, namely trying to apply old supply technology in a world with higher data fidelity expectations, stronger supply partnership needs, and a more pragmatic “test and learn” mentality requirement.
Nordstrom’s most recent experience in inventory distortion has manifested itself through supply chain issues: products are commonly out of stock. Nordstrom knew that expanding drop shipping could be key to solving much of this issue, but the technology solutions they reviewed were not providing the flexibility they needed to grow the program.
Nordstrom has historically used its EDI VAN to manage the data exchange between supply partners and their systems. The VAN was being used to pass data about inventory, orders, and invoicing but without the flexibility Nordstrom needed.
Dsco’s integration flexibility allows suppliers to pick a method that is conducive to inventory visibility for their business systems and process. Some may choose to upload flat files while others choose to connect via API or through EDI, but with Dsco, the supplier visibility has no impact on Nordstrom’s ability to unify their own analysis and management.
Dsco automatically reduces inventory quantities using advanced logic. This means when a supplier hasn’t updated their supply since recent orders came in, Dsco logic will inform the retailer of the most likely true inventory, resulting in lower cancellation rates.
For Nordstrom, one full-time employee is now capable of onboarding more than 40 trading partners a month because of Dsco’s integration flexibility. That’s a 4x increase in productivity. No matter which method a supplier chooses to integrate, each standardized their data and connection to the Dsco framework. This means no integration is ad hoc, and it has drastically simplified the onboarding experience.
I can recommend Dsco with a standing ovation!
The team at Dsco has been tremendous. The communication, ease of doing business and flexibility are best in class. We are one week into using the platform, and we have saved many, many hours already. My team is so happy. The rollout cost us nothing and is super user friendly. Love it!
A great tool for integrating data transformation to major department stores. The flexibility that the system offers is outstanding and the set-up process was seamless.
Add to this the fill rate improvement and progress in customer retention from avoiding a cancellation experience, and the profitability keeps climbing.
Nordstrom’s suppliers have become stronger partners, fulfillment rates have improved, new partner onboarding has drastically accelerated, and all sides have seen improved drop shipping margins.