Starbucks scraps AI tool for automating inventory at North American stores
Starbucks has decided to terminate an AI program aimed at automating inventory counts in its North American stores. The decision comes after the tool frequently miscounted and mislabelled items, leading to operational challenges. The company is now focusing on standardizing inventory counting methods and improving supply chain processes.
- ▪Starbucks terminated an AI program for automating inventory counts after nine months of deployment.
- ▪The tool was intended to address product shortages but often miscounted and mislabelled items.
- ▪The company aims to standardize inventory counting and improve supply chain efficiency.
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Open this photo in gallery:A Starbucks store in Boston on February. The coffee chain terminated an AI program this week that workers used to automate some inventory counts.Charles Krupa/The Associated PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountStarbucks SBUX-Q terminated an AI program workers used for automating certain inventory counts this week, nine months after deploying it across its North American stores, according to an internal newsletter reviewed by Reuters and two people with direct knowledge of the situation. The tool was part of CEO Brian Niccol’s efforts to fix the coffee chain’s persistent product shortages that he has blamed for hurting sales.
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