Top

New order-to-store system blamed for Whole Foods shortages

January 24, 2018

Category:

The day before a snowstorm, a grocery store could be forgiven for having empty shelves as customers arrive en masse to stock up. But for Whole Foods, the empty shelves have nothing to do with the weather.

The grocer’s inventory management system, meant to precisely fill orders, was a good idea in theory. By bypassing the store room, products would reach the shelves sooner, so they’d be fresher. And by ordering only enough to fit the shelves, stores would reduce inventory and spoilage. Whole Foods implemented the system, according to Business Insider, as part of a $300 million cost-cutting initiative.

Read More on Retail Dive