Nordstrom Case Study Example | Topics and Well Written Essays - 1000 words

Nordstrom - Case Study Example This has enabled Nordstrom to be leading in delivery of standard customer loyalty and services, in United States. Despite of its profit being majorly from the retail stores, Nordstrom has extended its credit segment, the multiple boutiques, and the internet sector (Cakir & Canbolat, 2008, pp.1367-1378). Demand purchasing in minimizing leftover inventory Nordstrom uses the demand forecasting in minimizing the leftover inventory. The overall corporate leadership in Nordstrom is based on two goals. Nordstrom integrates purchasing with demand in order to keep the inventory lean. The items in Nordstrom are kept in stock for a remarkably short time to enhance easy purchase by the customers due to the limited time. Normally, Nordstrom keeps the items in inventory for a short time, usually 62 days. Apart from the daily sales, Nordstrom gives discounts on certain goods as well as planning for more productive and profitable sales prices. One of the greatest challenge facing retailers is custom er retention. However, Nordstrom has succeeded in retaining its customers through piercing the insight into the minds of their customers. This has enhanced management and success of its inventory. The web-based system has enhanced monitoring of the demand. Customers check the items from the nearest local store, place an order and the items are delivered to them. The management and stock controllers are, therefore, able to access the movement of certain products to ovoid overstocking or under stocking (Cakir & Canbolat, 2008, pp.1367-1378). Benchmarks used to assess the success of web-based inventory integration The benchmarks used by Nordstrom in assessing the success of the web-based inventory system include monitoring other organizations and incorporate the ideas used by organizations in their normal operations. Nordstrom faces competition from companies like Nike and Macy’s. Taking certain qualities from their competitors and intertwining them in Nordstrom, a great success of the web-based inventory would be realized. Nordstrom uses the web-based inventory in informing the investors and the viewers of the financial statements. The website site, www.sec.com contains any additional information that they may need. Any concerns or questions raised from Nordstrom financials are discussed and addressed in the footnotes (Cakir & Canbolat, 2008, pp.1367-1378). The web-based inventory displays the items remaining in stock online; both from the warehouse and all the other stores. This helps in monitoring of the stock in all the stores from a central point. The web-based inventory enables the online transactions. The inventory to the website resulted in all the stores acting as online warehouses. The percentage of the customers purchasing good online can be used to gauge the success of the web-based system. High percentage of online customers is an indication that the web-based inventory integration was a success. Furthermore, the success of the system can be e valuated through the inventory turnover. Increased turn over indicates a positive response to the system (Spector & McCarthy, 2000, pp. 67-69). Application of participatory planning in product purchasing and groups involved Participatory planning encompasses people affected by the plans and those who are to implement them. Transparency and equitability will enhance increased customer trust in retailing. The interaction of employees with the managers determines the success of the