techchallenges

🚨 Starbucks Supply Struggles Highlight Deep Operational Issues ☕📦
Starbucks is facing ongoing supply chain challenges that go far beyond occasional product shortages — and executives are finally acknowledging just how complex the problem has become. (Reuters)

📉 What’s going wrong
• AI inventory glitches: New automated inventory tools miscount items like milk and syrups, leading to incorrect stock estimates and restock orders. (1330 & 101.5 WHBL)
• Scattered suppliers: Starbucks works with many small, regional vendors that struggle to scale when demand spikes, complicating deliveries. (1330 & 101.5 WHBL)
• Delivery failures: Less than one-third of truck deliveries in early 2024 reached distribution centers on time and in full, a sign of deep operational friction. (1330 & 101.5 WHBL)
• Outdated tech: Legacy systems like IBM’s AS/400 are still used for inventory and ordering — making automation and accuracy harder to achieve. (wkzo.com)

😣 Everyday impact
Customers have reported sandwich and pastry shortages, and baristas cite excessive waste due to mismatched ordering — overstock in some products and stockouts in others. (1330 & 101.5 WHBL)

📌 CEO Brian Niccol’s response
Starbucks says it’s modernizing systems, strengthening forecasting, and making the distribution network more agile to improve reliability — but insiders say the issues are deeper and systemic. (1330 & 101.5 WHBL)

⚠️ Why this matters
Persistent supply friction hurts customer experience and sales, especially as competitors bounce back from pandemic disruptions. The problem isn’t simple logistics — it’s architecture, forecasting, and coordination at every level.

#Starbucks #SupplyChain #BusinessNews #Operations #TechChallenges

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