Nordstrom is leveraging artificial intelligence (AI) to optimize its supply chain and gain greater visibility into spending. Speaking at the Manifest 2026 conference in Las Vegas on 18/2, Karoline Dygas, Nordstrom’s Vice President and Chief Procurement Officer, revealed the company's extensive use of AI within its spend analysis software.

Capital letters forming the word "Nordstrom" on a brick store facade. Photo: Nordstrom

This technology aids Nordstrom in developing category-specific strategies, provides procurement teams with a comprehensive view of spending, and gathers supplier information before meetings. "AI provides a vast amount of information; manually, it would take me hours to compile," Dygas stated, emphasizing that AI’s greatest value currently lies in its speed and the time it saves.

Nordstrom currently uses Suplari’s spend analysis software for its AI capabilities. Looking ahead, Dygas aims to expand AI adoption, seeking an AI-integrated procurement orchestration tool. She highlighted the non-linear nature of procurement, contrasting it with the design of most existing tools. "I need a solution that allows us to be more flexible and adaptive in supporting business operations," she explained.

Dygas is particularly interested in recommendation AI, which proposes specific actions based on demand forecasts, rather than just predictive AI. "I want AI to tell me what I need to know. Currently, we still have to tell AI what to look for, which is not aligned with our goal," she observed.

A crucial prerequisite for any AI tool deployment is robust data governance from vendors. They must ensure the accuracy, safety, and security of corporate information. "The tool must be truly strong in data, have good input, and not generate misinformation," Dygas stressed, referencing AI’s potential to produce inaccurate content presented as fact. Despite AI's current limitations, Dygas believes businesses cannot afford to ignore this trend. "If businesses do not embrace AI, they are already a step behind, because that train has left the station. The good news is if you run fast, you can still catch up," she advised.

Nordstrom, a US luxury fashion retail group, was founded in 1901 in Seattle. Starting as a shoe store, it evolved into an omnichannel retail chain, including department stores, Nordstrom Rack, and an e-commerce platform. The group is renowned for its customer-centric strategy and focus on mid-to-high-end fashion, cosmetics, and accessories. In recent years, Nordstrom has accelerated digital transformation, supply chain optimization, and technology adoption, including artificial intelligence, to enhance operational efficiency and the shopping experience.

By Ngoc Minh (Source: Supply Chain Dive)