How are Nordstrom Balancing Digitalisation in Procurement?
As procurement teams across the globe increasingly turn to technology to meet rising consumer demand, Nordstrom provides a prime example of how to effectively balance digitalisation with a skilled human workforce.
As the demand for procurement functions continues to increase, the necessity to adapt strategies has become a top priority.
For many organisations, this strategic transformation manifests as technological advancements. An increasing number of teams are utilising AI and automation to handle time-consuming administrative tasks.
Through this process of digitalisation, procurement aims to become significantly more efficient, thereby embedding greater resilience into corporate solutions.
In 2020, Nordstrom expanded its supply chain network to address rising demand. Through its West Coast Omni Center (WCOC) warehouse in California, the company stored more products and undertook digital innovations to facilitate order fulfilment.
The facility was built with the latest automation and data-driven processes to support efficiency and accuracy from the beginning of its operations. Through this initiative, the facility drove twice as much volume to meet consumer demand.
Enhancing visibility through algorithms
Part of this comprehensive digitalisation strategy includes the implementation of a dynamic routing algorithm. This advanced tool utilises information from the company's network to examine processing time, orders in queue and transit time.
By analysing these factors, it is able to calculate an estimated arrival time with greater precision. Through this process, the company creates greater visibility into its operations to ensure customer satisfaction.
Teams around the world are embedding digitalisation into operations to assist both consumers and team members. For procurement professionals, this technology could make processes more accurate and efficient.
It allows them to focus on strategic initiatives rather than spending resources on time-consuming work completed by automation. This shift is crucial for modernising workflows.
Reducing manual data errors
Like many businesses, Nordstrom emphasises the need for technological transformation and the application of digital tools across a supply chain. As companies face higher demand, manual, paper-based tasks are often no longer a viable option. Instead, Nordstrom has turned towards AI and automation.
Manually inputted data can cause significant errors which affect the rest of the supply chain. Accurate data input improves analytics results.
By utilising automation and AI for these processes, procurement teams work effectively using accurate data points. Currently, Nordstrom is working to embed generative AI into its everyday business processes.
It relies on end-to-end data programmes to ensure customer experience increases in quality and merchandise assortment provides the most desirable items.
Strategising with human talent
Despite this, Nordstrom recognises that people remain a main driver of procurement and that using technology without purpose could become an issue.
Without the people and processes to guide a tool, it might not demonstrate long-term success. When the technology is applied strategically, it could shorten process times, increase cost savings and create more efficiency throughout the supply chain.
Karoline Dygas, VP, Sourcing and Procurement CPO at Nordstrom, will speak on the panel ‘The Future of Procurement Technology’ at Procurement & Supply Chain LIVE: The US Summit.
Taking place on 21 April, 2025, at 12:15pm, the panel explores how procurement is shaped by technology. Leaders will share insights on innovations within automation, analytics and digital platforms transforming supply chains.
These advancements are creating faster, smarter and more resilient supply chains to ensure better business operations and increased customer satisfaction.
As VP and CPO, Karoline leads strategic sourcing and procurement for all non-merchandise spend. In her role, Karoline oversees the technological transformation of the company to ensure it provides a digitally focused delivery model.
Its aim is to ensure the best customer experience and financial performance. Across her career, Karoline has led sourcing for a range of global teams and been responsible for spend across a range of priorities.
As an expert in sourcing and technological transformation, Karoline can offer insights to leaders at the event.
“I'm thrilled to join other industry leaders in discussing how a digitised sourcing and procurement function can further enhance organisational value,” says Karoline.
Procurement & Supply Chain LIVE: The US Summit
Procurement & Supply Chain LIVE: The US Summit takes place April 21-22, bringing together senior procurement and supply chain leaders focused on innovation, strategy and transformation in their organisations. Co-located with Sustainability LIVE: The US Summit, the event provides a comprehensive view of procurement and supply chain’s evolving role in driving business value and sustainability.
It will also feature a celebratory party, with drinks, food, live music and a selection of entertainment.
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Karoline Dygas
VP, Strategic Sourcing and Procurement (CPO)
