Nordstrom has expanded its partnership and offered strategic investment to Dsco, a provider of integrated platform that creates networked supply chains.
Nordstrom had earlier deployed Dsco to help manage its distributed inventory, order fulfillment and drop shipments for Nordstrom.com.
Dsco is transitioning Nordstrom's drop ship supply chain into the Dsco supply network, which offers economical and efficient interactions between suppliers and retailers.
When retailer and supplier inventory is inaccurate, it could lead to product shortages and delayed delivery times.
Dsco founder and CEO Jeremy Hanks said: "The retail supply chain is one of those big, cumbersome problems that nobody has had the patience or drive to fix, but the status quo also takes tremendous manpower and a financial toll on retailers and, especially, suppliers.
"Nordstrom is aware of this dynamic and, like us, has realised that supply chains must evolve for retail to stay on top. Its partnership and investment in Dsco validate what we're about."
Dsco claimed that unlike software solutions that manage inventory visibility and order exchange integrations with supplier brands, it does not build innumerable, individual bridges between supplier brands and retailer data.
It serves as a standard for any data interchange, enabling both suppliers and retailers to gain the ability to opt on how they want to communicate in a way that neither party loses control over its data or transport technology.
In addition to standardised reporting, alerts and analytics, Nordstrom suppliers will also be able to integrate and share data to improve inventory management.
Nordstrom Merchandising Group executive vice-president Teri Bariquit said: "When customers shop online with us they should feel confident knowing what they ordered is available and will ship in a timely manner.
"We're impressed by Dsco's innovative approach to improve the online experience and as the Dsco network grows, we'll be able to further reduce complexity with our brand partners across our supply chain."