By Rose Spicer-Oracle on Dec 28, 2015
Founded in 1901, Seattle-based Nordstrom has long been known for superior service, going above and beyond to create a fantastic customer experience, and empowering employees to do whatever it takes to keep customers happy. To know Nordstrom, is to love Nordstrom. I would encourage you to explore for yourself, the Half-Yearly Sale is on until January 3rd. Below is an editorial view of the recent Oracle OpenWorld presentation.
Today, the department store chain also leads the market in bringing customers new omni-channel conveniences. For example, Nordstrom offers not only in-store pickup of goods bought online, but also permits cross-channel returns with buy-anywhere-return-anywhere service at any of its Nordstrom, Nordstrom Rack and Haute Look outlets.
“We provide an awesome shopping experience,” David Boeschenstein, vice president of Merchandise and Supply Chain Technology for Nordstrom, said in a presentation at Oracle OpenWorld in October. “We make it convenient for the customer to shop wherever and whenever she wants to shop.”
Oracle Powers Nordstrom’s Renowned Inventory Management
Most recently, Nordstrom employed Oracle Retail Merchandising System to enable its omni-channel initiatives by giving the department store chain a full view of inventory. The company eventually extended the system to its Nordstrom Rack division and web storefronts, but it became overly customized and siloed over time—and a new push into Canada would necessitate improved integration.
“Our strategy is straightforward: to realize the strengths and advantages of One Nordstrom,” Boeschenstein said, referring to its unified omni-channel strategy. “But we were handcuffed by a system that’s overly complex [and] costly to maintain. As we entered the Canadian market, we wanted to make sure we were able to grow. We wanted to maintain the upgrade path, so we didn’t face the same situation going forward.”
Nordstrom identified several priorities to guide the Next Generation (NGEN) initiative. “We needed to make sure we weren’t just going to replace the system we have today,” Boeschenstein said. “We wanted to be able to justify any complexity. We want to stay nimble; we want to stay focused—and prioritize what’s added going forward.”
The announcement of a Fall 2014 launch date for its first Canadian store helped the team focus on those goals and go live with RMS 13.26 just nine months later in Calgary. “It helped us balance the ‘nice to haves’ versus the ‘need to haves,’” Boeschenstein said. “We learned a lot from the implementation. It was opportunity for us to evaluate what support was there, and evaluate our internal capabilities.”
Nordstrom Rack Moves to New Oracle Retail Solutions
The next phase of the upgrade—taking Nordstrom Rack stores in the U.S. to Oracle Retail Merchandising System Version 14.1—would be more complicated. The team broke the task into stages and looked to the Oracle Retail Reference Library for guidance. Rollout will ultimately require an interdepartmental approach, and has the full support of the company. “Acknowledging that this is the most important initiative in the company enabled us to get the resources we needed,” Boeschenstein said.
“The other thing we learned, and knew intuitively, is that there’s a need for early and often performance testing,” he added. “We’ve piloted a few stores, and now we’re taking a break to make sure performance is tuned correctly so we’re on track for Fall 2016.” In 2017, the company will upgrade to Oracle Retail Version 14.1 in Canada and introduce Nordstrom Rack stores there; full-price stores in the U.S. will see an upgrade starting in 2018.
“We have a great relationship with Oracle, and we really appreciate that,” Boeschenstein said. “We’re learning along the way, and applying the lessons learned. And we feel like we’re making significant strides in achieving our One Nordstrom strategy.”
For more insight to Nordstrom’s strategic use of Oracle solutions to support its expansion into Canada, see the full presentation "Nordstrom: Technology to Enable Future Growth".
Oracle’s retail customer community is a rich resource for peer-to-peer insights to best practices and business strategies. Follow this blog in the coming weeks as we share a series of stories presented by retailers during Oracle OpenWorld 2015 in San Francisco. We invite you to learn more about the Oracle solutions used by these and other retailers worldwide, join us at the National Retail Federation “Big Show” held January 17-20 in New York City, New York, where we will demonstrate the industry’s most comprehensive suite of cloud and retail services solutions. #NRF16