Nordstrom to Ramp up RFID

Nordstrom plans to improve its supply chain efficiency by increasing its use of RFID technology and enhancing its inventory and returns management.

The company’s supply chain strategy supports its three main goals: improving Nordstrom Rack’s performance, increasing inventory productivity, and boosting profitability and readiness for the second half of the year.

By optimizing its supply chain, Nordstrom has improved its customer service, offering faster and cheaper delivery, which was essential for its annual Anniversary sale.

CEO Erik Nordstrom said on a recent earnings call that the company’s variable supply chain costs have decreased by more than 100 basis points as a percentage of sales compared to the previous year for four quarters in a row, helping to offset the impact of lower sales on its SG&A expenses.

The company said it was “better prepared” to launch the Anniversary sale this year thanks to its ongoing supply chain improvements.